How It Works

How It Works

System overview and flow

How It Works

cc0strategy uses Uniswap V4 hooks to capture trading fees and distribute them to NFT holders.

Architecture Overview

┌─────────────────────────────────────────────────────────────┐
│                        User Swaps                           │
└─────────────────────────────────────────────────────────────┘
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│                    Uniswap V4 Pool                          │
│                   (with Custom Hook)                        │
└─────────────────────────────────────────────────────────────┘
                              │
                    6.9% Fee Captured
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│                   CC0Strategy Hook                          │
│                                                             │
│  ┌─────────────┐           ┌─────────────────────────────┐ │
│  │  1.38% to   │           │  5.52% to LP Position       │ │
│  │  Factory    │           │  → LP Locker collects       │ │
│  │  (Team)     │           │  → FeeDistributor receives  │ │
│  └─────────────┘           └─────────────────────────────┘ │
└─────────────────────────────────────────────────────────────┘
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│                    Fee Distributor                          │
│                                                             │
│  100% of received fees → NFT Holders (per token ID)        │
└─────────────────────────────────────────────────────────────┘

Core Components

Factory

Deploys new tokens with Uniswap V4 pools. Each deployment:

  • Creates an ERC-20 token
  • Initializes a Uniswap V4 pool
  • Attaches the custom fee hook
  • Locks initial liquidity

Hook

Uniswap V4 hook that intercepts every swap:

  • Captures 6.9% of swap value
  • Routes 1.38% to Factory (team)
  • Routes 5.52% to LP position

LP Locker

Manages locked LP positions:

  • Holds LP NFTs permanently
  • Collects LP fees
  • Forwards fees to FeeDistributor

Fee Distributor

Distributes fees to NFT holders:

  • Receives fees from LP Locker
  • Tracks per-token-ID balances
  • Allows NFT holders to claim