Ledge

The floor only moves up.

Ledge is a token with a reserve behind it. The reserve sits in its Uniswap v4 pool as a standing bid at the floor price, and every trade, sale or redemption leaves that floor where it was, or higher.

Try to push it down Read the specification
Floor0.00004100 ETH
Reserve43.00 ETH
Ratchets since you arrived0

Illustrative simulation in compressed time, running the protocol’s rules.

One ratio, four ways to move it

The floor is the reserve divided by the tokens in circulation. Everything that happens in the protocol changes one side of that fraction or the other, and the rules are written so the result never shrinks.

R
ETH controlled by the hook, including what sits in the bid wall.
Sc
Tokens held by anyone other than the hook, and not burned.

Swap fees

Every buy and sell pays a fee in ETH that goes straight into the reserve. The reserve grows; the supply doesn’t. Selling costs 0.5% at the floor and up to 4% far above it.

(R + fee) / Sc > R / Sc

The wall buys

When price falls to the floor, the reserve buys at or below it. The wall’s top edge is always rounded down, so it can absorb every circulating token without running dry.

(R − ΔQ) / (Sc − ΔT), with ΔQ ≤ ΔT · Pfloor

The protocol sells

The hook sells part of its inventory, but never less than 5% above the floor. Each token sold brings in more ETH than the floor it dilutes.

(R + ΔT · p) / (Sc + ΔT), with p > Pfloor

Holders redeem

Anyone can hand tokens back to the hook for 98% of the floor, paid in ETH. The 2% left behind belongs to everyone who stays.

(R − a · Pfloor · 0.98) / (Sc − a)

Volatility pays the reserve

The wall below spot and the ask above it form a grid around the price. Every swing up and back down runs the loop once, and the floor finishes it higher, however little anyone paid in fees.

  1. Price rises into the ask, and the hook sells inventory above the floor.
  2. The ETH from that sale lands in the reserve.
  3. The wall is redeployed a step higher.
  4. Price falls back and meets the wall.
  5. The wall absorbs tokens: 40% are burned, 60% return to inventory.
  6. The wall moves up again, and the ask is reposted above the new spot.

In a long rally the inventory runs out and the protocol stops selling. It keeps what it earned on the way up.

Diagram: the ask above spot and the floor below it both feed the reserve

Try to push the floor down

This is the protocol’s arithmetic running in your browser, seeded with 43 ETH of reserve and the starting parameters from the specification. Sell into the wall, redeem, buy from the ask, in any order and any size.

Floor 0.00004100 ETH per LEDGE
Reserve
43.000 ETH
Circulating
1,048,780
Spot
0.00005200
Burned
0
Hook inventory
451,220
Sell fee now
1.21%

Sell into the wall

The reserve buys your tokens just under the floor. The exit fee grows with the distance between spot and floor.

Redeem at the floor

Your tokens are burned and you receive 98% of the floor in ETH, whatever the pool is doing.

Buy from the ask

Buyers fill the protocol’s ask, which sits at least 2% above spot and 5% above the floor.

No moves yet. The floor is where the seed put it.

    Hands setting a steel coin on the edge of a stone ledge

    Leave at the floor, whenever you want

    Call redeem on the hook and your tokens are burned for 98% of the floor, paid in ETH. It doesn’t depend on pool depth or on anyone taking the other side.

    If the market ever trades below the floor, buying there and redeeming is a straight profit, and that trade pulls the price back up. The floor is enforced by arithmetic, not by liquidity.

    Steel tokens dissolving into rising embers

    What the wall takes in stays out

    Tokens the wall buys leave circulation straight away, so the floor rises the moment they arrive. 40% are burned for good.

    The other 60% go to the hook’s inventory. They can only be sold again through the ask, above the floor, which adds more to the reserve than it takes.

    Starting parameters

    Chosen at deployment. Every value below is what the simulator on this page uses.

    SymbolWhat it controlsValue
    wBid wall width, in tick spacings1
    waAsk width, in tick spacings3 to 5
    spreadMinimum distance of the ask above spot2%
    askMarginMinimum distance of the ask above the floor5%
    fbBuy fee0.5%
    fmin / fmaxSell fee at the floor / far above it0.5% / 4%
    frDirect redemption fee2%
    βShare of absorbed tokens that is burned0.4
    θFloor drift that triggers a redeploy0.4%
    minBlocksMinimum blocks between redeploys2
    askInventoryShareShare of inventory posted as the ask30%

    The first version can ship lean

    The ask grid is separable. With the ask share at 0 and the burn share at 1, Ledge is just swap fees into the reserve, a bid wall at the floor, every absorbed token burned, and direct redemption. The floor guarantee is identical. The grid can be switched on later by parameter.

    See the minimal configuration