LIQUIDITY PROVIDERS
TAAPL / USDC
You are the counterparty
Every morning the gap in your pool is taken by whoever is fastest to it. This hook sells that head start and hands you the money.
▌ WHAT YOU GET
Three things the hook does for you
- 01
100%
of proceeds to LPs
The overnight gap is sold, not given away
Instead of the first arbitrageur at the open taking the gap for free, the right to trade it is auctioned in advance. The winning bid is paid to you in full through donate() — there is no treasury and no protocol cut.
- 02
0.030% → 3.00%
over 48h closed
The fee widens while the market is shut
A pool priced off a stale quote is easy to pick off, and a three-day weekend is riskier than an overnight. The fee ramps with elapsed closure time, so the cost of trading against you rises with the risk you are carrying.
- 03
NEVER
gated liquidity ops
You can always leave
Exclusivity gates swaps and nothing else. Adding and removing liquidity is untouched by the hook in every state — market open, market closed, mid-auction, inside somebody's exclusive window, or with the price feed broken outright.
▌ THE FEE SCHEDULE
A long weekend costs more
Gap risk grows with the length of the closure, so the fee does too. The curve is a pure function of how long the price feed has been silent — nothing to set, nothing to vote on.
▌Fee vs feed silence
base 0.030% · max 3.00%
The arb that was taken from you is sold back to you.
▌ WHAT IT DOES NOT DO
The limits, in plain terms
Four things this hook does not fix. Any of them could matter more to you than everything above, depending on how you provide liquidity.
- donate() pays in-range LPs only
- The proceeds go to whoever is in range at the current tick when the bell is rung. A position sitting out of range at the open carries gap risk and receives nothing from that morning's auction. This is a property of v4's donate, not something the hook can work around.
- An unsold open is protected by fee alone
- If nobody bids, there is no exclusivity to enforce. The fee stays at its widest across the opening window and anyone may trade — better than nothing, but weaker than a sold ticket.
- A broken feed makes the pool expensive
- Past 96 hours of silence the hook cannot distinguish a dead feed from a long halt, so it pins the fee at 3.00%. That protects you from being picked off at a stale price, but it also means very few people will trade the pool until the feed recovers.
- No audit
- The contracts have a 25-test suite covering the fee ramp, the closure detector, the auction, the exclusive window and the refund paths. They have not been audited, fuzzed, or run through invariant testing.