Hyperhook — Whitepaper (v0.2.1)

Hyperhook is experimental software. This document is not a prospectus, legal offering, investment advice, or description of a token sale. Participation involves smart-contract and market risk; confirm deployed addresses match the live app and read the verified source on Etherscan before using the protocol.

Verified contracts (Ethereum mainnet)

Production deployments are source-verified on Etherscan. The Solidity published at each link matches the bytecode on-chain; confirm addresses against the live app before signing transactions.

SDK: github.com/CrimsonLuckyLabs/hyperhook-sdk

Executive summary

Hyperhook is an hourly binary market on Bitcoin versus a fixed strike. Trading settles through a single on-chain vault combined with a Uniswap v4 hook. While an epoch is open, hhUP and hhDOWN outcome tokens trade against a bounded sentiment curve priced in live collateral—not a simple one-for-one mint against stablecoins.

Every buy during the open hour mints outcome tokens and, in the same transaction, mints $HYPERHOOK in equal amount—a participation token distinct from epoch payout mechanics. Sells on the open curve burn outcome tokens only; $HYPERHOOK is unaffected unless the holder redeems at floor or transfers it.

At resolution, a Chainlink-style oracle compares the reference price to the epoch strike. Vault collateral at that moment is split 90% / 5% / 5%: the winning side (pro-rata by stake), loser consolation, and carry. Carry feeds a floor reserve that backs a non-decreasing redemption floor for $HYPERHOOK when the next epoch opens. The next hour’s opening curve is seeded from expired, unclaimed consolation (after a 48-hour claim window), not from carry—so carry compounds backing while hourly liquidity is recycled from prior epochs.

Optional early exits by winners after resolution can incur a decay tax that flows only to the consolation pool and does not reduce the 90% winner allocation fixed at resolution.

Terms

$HYPERHOOK and the floor

Issuance

On each open-epoch buy (direct mint or swap through the hook), Hyperhook credits the trader with outcome tokens and the same quantity of $HYPERHOOK. Open-curve sells burn outcome tokens only; $HYPERHOOK stays in circulation until floor redemption or transfer.

Carry and reserve

After resolution and rollover, the epoch’s carry slice is added to floor reserve collateral. The protocol publishes a floor price per $HYPERHOOK that never decreases under the contract rules, reflecting reserve and circulating supply.

Floor redemption

Holders may redeem $HYPERHOOK against the floor for collateral, subject to available reserve. Redemptions apply the same monotonic pricing rule.

Scope

$HYPERHOOK is not a pro-rata claim on the 90% winner pool or on hhUP/hhDOWN settlement math; its design is minting policy, carry-backed reserve, and floor redemption. Market prices may differ from the published floor.

Why Uniswap v4

1. Singleton pool manager — One shared settlement layer; Hyperhook attaches permissioned logic to specific pools.
2. Efficient settlement — Flash accounting and deltas align swaps with vault state, fees, and referrals.
3. Composable routing — Outcome exposure can be acquired via standard v4 swaps under epoch and pricing rules.
4. Deterministic deployment — Hook addresses satisfy Uniswap v4 permission masks required for callbacks.

The 90% winner allocation

Let V denote vault collateral attributable to the epoch at resolution (including seed). The contract allocates roughly 90% to the winning side’s redeemable pool, 5% to consolation, and 5% to carry (subject to rounding).

Guarantee: Referral skims, trading fees on the open curve, and the post-resolution decay tax do not shrink the 90% slice once fixed at resolution. The decay tax applies only to post-resolution winner-side exits and increases consolation, not the frozen winner pot.

How trading and settlement interact

Participants

Core contracts

Epoch lifecycle

1. Trading open — Until resolution time; swaps and direct buys/sells follow open-curve rules.
2. Resolution — Oracle answer versus strike; vault collateral V is split 90 / 5 / 5 per contract logic.
3. Post-resolution — Winners redeem; losers claim consolation; optional taxed exits by winners; tax flows to consolation only.
4. Rollover — New strike from oracle; expired consolation funds the next seed; carry updates floor reserve and floor price; the next epoch opens.

Fees and parameters (summary)

• Protocol fee: 1% of gross on open-epoch buys, open-epoch sells (proceeds), and post-resolution winner sells (after tax). Recipient is fixed at deployment.
• Referrals: Up to 9% of gross buy across tiers, applied before collateral enters the curve; does not cut the 90% winner pool at resolution.
• Decay tax: On winner-side exits after resolution, tax starts at 10% at settlement time and declines linearly to zero over one hour; proceeds go to consolation, not the winner pot.
• Consolation window: 48 hours to claim; unclaimed amounts later seed new epochs.
• Floor: Carry at rollover adds to reserve backing $HYPERHOOK floor redemption.

Oracle and strike

Settlement uses a Chainlink AggregatorV3-compatible feed (primary, with optional secondary and deviation checks where configured). Prices must be positive and fresh within maxOracleStaleness. The strike for the hour is taken from the oracle when the epoch rolls forward. hhUP wins if the settlement answer is strictly above the strike; at or below favors hhDOWN.

Trading through Uniswap v4

Swaps targeting outcome pools invoke Hyperhook’s beforeSwap logic: epoch validity, mint/burn of outcome tokens, fee and referral handling, and post-resolution exit rules. Swap metadata can include trader, referrer, and guardrails such as slippage limits.

References

• Uniswap v4 — hooks, singleton manager, flash accounting.
• Chainlink AggregatorV3 oracle interface.
• Implementation — public repository (Hyperhook, HyperhookToken, HyperhookAutomation, deployment tooling).

Hyperhook contributors — MIT-licensed components as marked in the repository.