GLOSSARY
Active Liquidity
Liquidity that is currently earning fees within a position's price range. When the market price moves outside a position's boundaries, the liquidity becomes inactive and stops earning trading fees until price reenters the range.
Concentrated Liquidity
A liquidity model where providers allocate capital within specific price ranges rather than across all possible prices. This allows for more efficient capital deployment and higher fee earnings per dollar of capital.
Fisher School
HOOKED!'s inaugural rewards program that incentivizes early liquidity providers. Participants earn Hooks by depositing liquidity in HOOKED! pools, with rewards scaling based on commitment and activity level.
Hooks (Uniswap V4)
Customizable code modules that extend pool functionality in Uniswap V4. Hooks allow pools to implement custom behaviors like dynamic fees, oracle implementations, and other protocol-specific features.
Liquidity Accumulator
A cumulative value tracking seconds divided by in-range liquidity over time. Used to calculate time-weighted average liquidity (TWAL) by comparing observations at different points in time.
Price Impact
The difference between the expected execution price and the actual execution price of a swap. Price impact occurs because AMMs shift the relative price of assets as liquidity is consumed during a swap.
REHYPED Liquidity
HOOKED!'s core innovation that enables stablecoin liquidity to earn yield from two sources simultaneously: swap fees from trading activity and external yield from lending markets and other DeFi protocols.
Slippage
Price changes that occur between when a transaction is submitted and when it executes on-chain. Slippage tolerance sets an acceptable price range; if execution price falls outside this range, the transaction reverts.
Tick
A discrete price boundary in concentrated liquidity pools. Ticks are spaced such that each tick represents a 0.01% price movement. Liquidity positions are defined by selecting lower and upper tick boundaries.
Tick Accumulator
A cumulative value tracking the sum of active ticks over time. Used to calculate time-weighted average prices (TWAP) by comparing tick accumulator values at different observation points.
TruncatedOracle
A default oracle implementation in HOOKED! that limits extreme tick movements to prevent manipulation. If a tick moves more than a maximum threshold from the previous tick, the movement is truncated to protect price data integrity.
TWAP
Time-Weighted Average Price. A price calculation method that averages prices over a time period, weighted by how long each price was active. Derived from tick accumulator observations.
TWAL
Time-Weighted Average Liquidity. A liquidity calculation method that averages liquidity over a time period using harmonic mean. Derived from liquidity accumulator observations.
Yield Agnostic
An architecture that is not locked into any single yield source or platform. HOOKED!'s yield agnostic design allows yield curators to source returns from any DeFi protocol, ensuring competitive yields regardless of market conditions.
Yield Curators
Entities that compete to source the highest, most reliable returns for HOOKED! liquidity pools. Their compensation is tied to the total value locked (TVL) they manage, creating incentives to maximize yield.