Liquidity desk

Allocation capital paired with HOOK in Uniswap liquidity, marked at market

The desk

The Manager selects a token from the chain, acquires it with allocation capital, and supplies it single sided to a Uniswap v4 pool against HOOK, in a range beyond the prevailing price. When the paired token appreciates against HOOK, arbitrage purchases HOOK on the open market and sells it into the position for the paired token; the position comes to hold HOOK, and every one of those purchases paid the trading fee. When HOOK appreciates against the paired token, the position converts the other way. Trading fees on these pools accrue to the reserve in proportion to the liquidity the fund provides, which at present is all of it.

Valuation

HOOK, USDG and ETH are valued at the same market read as the rest of the terminal. A paired token is valued through its own primary market, never through the pool it sits in, because the reserve may be the sole depositor there and a last trade is not a price. The route for each token is pinned in the terminal's configuration. A token without a route is valued at its pool price and the terminal says so.

Standing

Desk positions are not backing. NAV per share counts the backing bucket alone, and the standing bid pays from it alone. A position carries the paired token's price risk and the character of concentrated liquidity: as the price crosses the range it sells the appreciating side for the depreciating one. Each position states the USDG the fund committed and its result since, value plus fees earned, at the block it was read.

Positions

Live values, ranges and results are on the reports page under reserve positions.