Questions

The short answers

Where do distributions come from?

From the trading fee. The distribution leg purchases HOOK on the open market at each settlement and the staking contract credits it to stakers through the index.

What stands behind the share?

The reserve: USDG held by the treasury contracts, filled by the treasury leg of every fee, and the positions the Liquidity Desk holds. NAV per share is the backing bucket divided by circulating supply. Only redemptions draw on it, so it rises with every fee.

Why does the rate move?

Every rate is measured from settlements that have already occurred and is labelled so wherever it appears. Future settlements are funded by trading volume alone.

How do v4 hooks bear on the fund?

A hook is a contract that Uniswap v4 attaches to one pool, running inside the swap itself. The fund's is the fee hook on the HOOK/ETH pool: it collects before settlement, so no venue avoids it. A token level transfer tax cannot do this, because the v4 PoolManager is one contract holding every pool, with no pair address to key a tax against.

Why are there two machines?

The first settled one purchase per epoch and fell behind the fee. Its successor, deployed on 3 September 2026, clears its legs in full each epoch. The first continues to settle what it holds for the holders staked with it.

Why does the reserve hold Uniswap positions?

So that the success of other tokens becomes purchases of HOOK. When a paired token appreciates, arbitrage buys HOOK on the open market to rebalance the pool, paying the fee hook on the way, and the pool's own trading fees accrue to the reserve.

How do I know an address is genuine?

Use only the addresses under official channels, verify the full address against the explorer, and treat anything else as counterfeit.