Managed liquidity & the floor

The hook manages liquidity#

Launch liquidity spans the opening price to the highest usable token-price tick, sized with integer math so it never uses more than the fixed supply. Any remainder stays tracked as unsold inventory. Currency orientation is handled explicitly: the token can be currency0 or currency1.

The live band extends 2,880 token-price ticks below the market, about 25%. A move of 490 ticks from its anchor triggers recentering within the trade. Range folding keeps managed-position growth bounded and reconciles released backing and token inventory. External liquidity additions to the canonical Sinjoh pool are refused.

A funded gross sale price#

When enabled, the floor is a minimum gross sale price in backing for holder-outstanding tokens. It is used inside a normal sell; there is no separate redemption journey or holder waiting period. Applicable sell taxes, execution rounding and gas affect the net result.

A launch starts with its floor tick one spacing below opening. Migration instead selects a fully funded floor consistent with existing holder obligations and the actual seed. A floor already established never decreases.

Coverage and new raises use different tests#

Existing coverage:
  protected market absorption + executable floor absorption ≥ holder obligations

New floor raise:
  full outstanding cash funding at the new band-top requirement
  AND an aligned price cap below min(current price, smoothed price)

New raises choose the highest fully funded aligned tick under a cap approximately 95% of the lower current/average price (513 token-price ticks). The cap limits a new raise, not an existing floor when prices later fall. Spendable treasury, another party’s obligations and unavailable investments do not count as protected floor cash.

Deep sells and floor fills#

Deep sells can temporarily extend liquidity using only the estimated required liquid treasury and bounded available yield, subject to the trader’s limit. With a floor enabled, extension stops at the floor-band top. Temporary liquidity is removed afterward and unused backing is returned to the appropriate account.

A floor-reaching sell receives a temporary F..F+10 backing-funded band. After the fill, the band is removed. If price is left inside that emptied band, the hook resets it through the empty range to the top without moving assets, allowing the next floor fill to be funded from backing alone. Rounding costs belong to the floor-reaching sell, not a leak from floor cash.

Launch-token floor purchases become deferred PoolManager claims, excluded from holder obligations and market-cap supply before maintenance burns them. For unchanged migrated tokens, floor purchases go to the dead address and do not change ERC-20 total supply.