The Hook is the programmable layer
Not a wrapper, not a keeper bot, not a script watching from outside. The pool itself calls into the Hook at defined lifecycle points. Anything the Hook does happens because the pool asked it to.
§ 02
PROGRAMMABLE LIQUIDITY
The central claim of this experiment: liquidity is not only capital sitting in a pool. It is capital wrapped in code that runs.
LIQUIDITY
CAN BE
PROGRAMMED.
CODE → HOOK → EXECUTION → STATE
THE POOL CAN RUN RULES.PROGRAMMABLE INFRASTRUCTURE.CODE BECOMES EXECUTION.
THE PROGRAMMABLE CHAINFIG. 2
POOLreserves + curve
PROGRAMMABLE HOOKthe programmable layer
CUSTOM LOGICthe rule, as code
EXECUTIONsame transaction
STATEthe record
Custom logic attaches to activity
Instead of liquidity being only a passive pool of assets, the system attaches custom logic to pool activity. Every swap becomes a trigger for whatever rule the protocol has chosen to encode.
Execution produces state
The rule does not describe an intention to act. It acts — atomically, inside the transaction that triggered it. What comes out the other side is new on-chain state, and state is the only thing that counts.
LEXICON —PROGRAMMABLE LIQUIDITYPROGRAMMABLE HOOKPROGRAMMABLE ECONOMICSPROGRAMMABLE FEE FLOWPROGRAMMABLE STATE
§ 04
PROGRAMMABLE ECONOMICS
If logic can attach to liquidity, then economic behaviour can be expressed as logic. That is the entire subject of this section.
FIG. 4 — RULE TO STATE
RULE
CODE
HOOK
EXECUTION
ECONOMIC STATE
an economy written as a call stack
Most token economics are policy: a document describing what a team intends to do with revenue, executed later by people. RUNTIME asks what the same idea looks like when it is compiled — when the rule is a function the pool calls rather than a paragraph someone honours.
The mechanisms below are the vocabulary of that compiled economy. Each is labelled with its actual status in this experiment. Nothing is described as implemented unless it is.
FEE LOGICPENDING VERIFICATION
The rule that decides what a swap contributes. Uniswap v4 permits custom and dynamic fee behaviour; what RUNTIME applies is read from chain, not asserted here.
ACCOUNTINGIMPLEMENTED
Captured value is attributed to the protocol rather than distributed back into the curve. Accounting is the bridge between a swap and an economic consequence.
BUYBACKIMPLEMENTED
Captured value is routed back into $RUNTIME. The protocol becomes a buyer of its own token as a function of activity, not of discretion.
BURNIMPLEMENTED
Acquired tokens are sent to an irreversible sink. There is no recovery path and no administrative key that reverses it.
STATE UPDATEIMPLEMENTED
The result is written. Supply after the transaction is smaller than supply before it, and the difference is publicly verifiable.
§ 06
THE RUNTIME MODEL
Four stages. Each one is a binding between something abstract and something that actually exists on-chain. Hover a stage to expand it.
hover, focus or tap a stage — the readout follows