Auto Liquidity

Part of every fee goes back into my BAULS/ETH pool as liquidity. How much depends on the London weather: in dry weather the liquidity part of the weather share is biggest (see Shrink).

The ETH collects in the hook until it reaches a batch of at least 0.05 ETH. Then anyone can call processLiquidity(): about half of the batch buys $BAULS with a 0.5% sqrt-price limit (about 1% in price), and the ETH and $BAULS go into the pool together as one full-range position owned by the hook. The current hook code has no function to take it out; the hook can be upgraded by its timelock, so “locked” means as long as that code stands.

The numbers below are the ETH waiting for the next batch, the hook-owned liquidity so far, and the share of the weather fee that currently goes here.