The ladder and rebalancing
The ladder is the protocol’s working liquidity. It contains CUBIT positions offered for purchase and an ETH position, the cushion, that can absorb sales close to the market.
Its positions are mobile. Their availability depends on protocol funds, the price and the pool’s geometry constraints.
Token allocation
The model reviewed in the code targets 70% of tokens held for the ladder in active positions, with the rest in reserve. The deployed portion is distributed across three bands at 20% / 30% / 50%.
| Band | Share of the amount intended for bands | Approximate price range |
|---|---|---|
| First | 20% | Reference → ×2 |
| Second | 30% | ×2 → ×4 |
| Third | 50% | ×4 → ×8 |
Each range spans 6 930 ticks, approximately a doubling in price. These proportions are placement targets: rounding, liquidity caps and market position can leave more tokens in reserve.
The percentages do not represent team allocations. Tokens isolated for burning and CUBIT deposited in the Vault are not a freely available ladder reserve.
The ETH cushion
The cushion is a mobile buy position, normally below the market. The historical geometry targets roughly a halving in price across its width. Its placement must respect the walls.
An ETH merely accounted for in ladderIdleEth is not an ETH in an active position. It therefore creates no executable depth while it remains idle.
What happens when the price ranges
When the price oscillates within ladder ranges, their inventories can gradually shift from CUBIT to ETH, or from ETH to CUBIT. The ladder can reuse its own tokens and reorganize its positions during a rebalance.
Walls follow a different rule: the CUBIT they buy back is isolated and then destroyed, and does not return to supply LP liquidity. Oscillations that reach walls can therefore remove tokens from the market and consume liquidity in certain ranges.
A range that stays above the walls does not trigger these burns. The price must actually cross the relevant positions; time alone does not automatically drain every tick. Absorption and deflation.
Compatibility between the ladder and multiple fixed walls is part of the ongoing revision. Details of the old version’s geometry are insufficient to validate the new one.
What a rebalance does
A rebalance withdraws the relevant ladder positions, accounts for assets and realized fees, assigns the planned shares, then redeploys available liquidity around the reference chosen by the contract.
The sweep transfers 15% of the ETH included in its calculation to the wall reserve. The keeper bounty is capped and comes from the ladder. If the Vault is available and funded by activity, its share applies to ladder LP fees actually realized in ETH.
A rebalance does not let the caller choose the price, the walls’ recipient or a withdrawal to their wallet.
When the call is eligible
The sources use a reference movement of at least 1 250 ticks and a 25-block cooldown. The contract also checks initialization, the maintenance pause and its execution context.
Cooldown blocks and seconds in the V2 schedule are different clocks. Twenty-five blocks are not a guaranteed fixed duration.
The Lens exposes eligibility; a simulation with the calling account always precedes submission. Another transaction can change the state between reading and execution. Triggering maintenance.
Sources: CubitHook._deployAsks, _rebalance, _referenceTick and libraries/BandLib.sol. The parameters described come from the sources reviewed; their integration with multiple walls still requires validation.