How it works

Two phases, one vault

A strategy token begins life on a Pons bonding curve. Once the curve holds 4.2 ETH, Pons retires it and opens a Uniswap v4 pool for the token, and the pool is where it trades from then on. Both markets belong to Pons: see the curve and the pool.

Here mystrat differs from designs that switch a strategy on at graduation. Pons credits the creator tax to the vault on every trade in either market, so the vault is bidding while its token is still on the curve. Early bids are small and grow with the trading behind them.

The treasury

Pons keeps each trade's creator rewards until they are collected, and any wallet can collect them; the keeper does so every 5 minutes. From each collection the vault holds back 80% for the strategy and reserves 10% for the launcher and 10% for the platform. The strategy's part is the treasury, and the vault does nothing with it except bid.

Once the token trades in its pool, part of the charge on buys lands in the token itself. While any of it waits there, Pons lets only its own operator collect, so after graduation the vault's rewards arrive whenever that operator runs rather than trade by trade.

The bid

No on-chain source tells the vault what a piece is worth. It names a price and lifts it second by second until someone accepts. At any moment that price is the lowest of three figures: the distance climbed so far, the strategy's ceiling (the factory's default when the vault was created, 1 ETH at the start of the beta, never above 100 ETH), and the treasury. The vault never offers ETH it does not have.

The launcher picks the pace, from 0.0036 to 36 ETH an hour. Each purchase subtracts its cost from the bid: paying the full bid brings it back to zero, paying less leaves the remainder. Fresh rewards raise the limit the bid may reach, never the bid itself, so timing a sale around a harvest earns nothing.

The purchase

Whoever spots a piece of the collection listed at the bid or below can send the vault to buy it. After paying, the vault inspects the result. Its balance of the collection must have grown by exactly one, the new piece must be the one it paid for, that piece must not have been sitting in the collection contract, and the ETH spent must stay within the bid. A single failed check reverses the entire purchase, and the ETH never leaves.

The collection-contract check stops a collection from minting new pieces straight into its own strategy's bid. Everything the vault buys comes from an existing holder.

The shelf

Each purchase is listed on the vault's shelf as soon as it lands, priced at 1.2 times its cost. The price is fixed: pay exactly that and the piece moves to your wallet in the same transaction, with no marketplace involved.

The multisig may cut the markup, and a cut reprices everything on the shelf together; it can never raise it. The markup cannot go below 1.05×, so nothing leaves the shelf for less than 5% over what the vault paid.

The burn

Shelf revenue never returns to the treasury. It goes to a burn queue of its own, which keeps resales from piling up as a fund inside the vault. Burn passes empty the queue: each one buys the strategy token on Pons and moves the purchase to the dead address.

No pass spends more than 1 ETH, or more than the market under the token can take: at a 10% tax, 5% of the ETH on its side of the market. That limit makes buying just before a pass and selling right after it a losing trade once the tax is paid. Passes also share one burn budget, which holds one such largest pass and refills by that much over an hour. A pass runs at its full size once the budget covers it, never shorter, so a long queue burns at about one largest pass an hour, and passes are at least 5 minutes apart by default. A large sale turns into a series of modest buys spread over hours.

The wallet that triggers a pass is paid 0.5% of it. A pass is a normal purchase and is taxed like one, so roughly a tenth of its size returns to the vault as fresh rewards.

The loop repeats

Nothing in the loop ends it. New rewards lift the bid, the bid buys, the shelf sells, the queue burns, and this goes on while the token has trading. The token moves from curve to pool only once and stays in the pool afterwards.

When it goes quiet

Shelf prices sit above the floor

Nobody buys from the shelf, so nothing burns. A lower markup, which only the multisig can set, lets the pieces sell.

No one triggers the steps

Any wallet may, the burn rewards whoever does, and the keeper does anyway. If every caller stopped, rewards would accumulate at Pons and in the vault.

Trading in the collection dries up

The vault goes on bidding with whatever its own token brings in. A bid cannot make people list pieces they want to keep.

Pons redirects the rewards

From then on the vault receives nothing new and spends down what it already holds. See before you buy.

Who runs it

Every step is permissionless. The keeper is a program calling them on a timer from a wallet with no special rights, and any other wallet may call them as well.