CUBIT in 5 minutes
CUBIT is an ERC-20 token associated with an ETH/CUBIT market on Uniswap v4. The protocol provides its pool’s liquidity itself: its hook determines allocation, taxes and maintenance according to the contract’s rules.
The initial supply is 21 million CUBIT, created once. There is no function to create new tokens afterward. CUBIT is deflationary when burns occur: the hook destroys tokens bought back by the walls, reducing the total supply. These tokens never return to tradable liquidity.
The multiple-wall policy described here is the specification being implemented. It does not yet describe the connected Sepolia pool. See version status.
The market’s two compartments
| Compartment | Role | What can change |
|---|---|---|
| Walls | Place ETH to absorb sales at defined levels | Their depth decreases with sales; each position’s ticks remain fixed |
| Ladder | Supply CUBIT for purchases and provide mobile liquidity for sales | Its positions and allocation reorganize at rebalance |
Team balances, V2 rewards and tokens reserved for burning are accounted for separately. The hook’s total balance alone therefore cannot describe the ETH actually available in the walls.
What swaps fund
For a 1 ETH exact-input purchase, excluding gas:
- 0.97 ETH enters the swap leg toward the pool, before its own LP fees.
- 0.03 ETH goes to the team compartment, with any Links share taken from within that amount.
For a sale producing 1 gross ETH, 0.85 ETH goes to the seller, 0.12 ETH funds the walls and 0.03 ETH goes to the team. Gas is paid separately.
The new version targets 0.01% LP fees. This pool fee is separate from the 3% buy tax and 15% sell tax. See taxes in detail.
How walls appear
Fees are not necessarily placed after every sale. They accumulate in the wall reserve until an eligible maintenance operation.
The current target is calculated from the market observed at time T and a launch base. With a 7k base, a 30k market gives a 16.2k target. Funds already placed in an older wall stay at its ticks; new funds can finance another level.
The formula chooses the wall’s location; fees determine its size. A displayed level does not prove that all holders could sell at that level.
Why a keeper intervenes
Contracts do not execute themselves. A transaction must call the function that places funds or reorganizes the ladder. These functions are open to everyone, subject to their eligibility conditions.
The caller pays gas and may receive a capped bounty from the ladder. The bounty amount does not guarantee profitability. Understanding keepers.
V1 and V2
V1 is the market: token, hook, walls, ladder, swaps and maintenance. V2 plans future features: Vault, Links, Momentum and Forge.
The team can replace compatible peripheral modules through the registry; this power persists after the guardian expires. The pool’s core retains its own fixed identities.
The guide does not present CUBIT as ready for mainnet. The roadmap details the outstanding conditions.
Repository sources: contracts/src/CubitToken.sol, CubitHook.sol, periphery/CubitV2.sol. The multiple-wall rule follows the user clarification of September 10, 2026.