Buyback bid

Buyback bid (buyback-bid v1)

A socket hooklet that makes your socket pool the best place to sell your token. Sellers get more ETH than selling on pons directly, paid from a budget you fund, and the tokens you buy are burned.

What it does

- **It bids on sells.** On every sell through your socket pool (exact amount of tokens in), the bid buys part of the seller's tokens from your budget. The rest goes through pons as usual. The seller receives both amounts. - **It pays more than pons.** The price is the lower of the pons price and a lagging reference price, minus a spread that is smaller than the pons fee. Sellers keep part of the pons fee they would otherwise pay (25% of it with the standard profile). - **The socket checks every bid.** It refuses a bid that buys more than is sold, spends more than your budget, or pays less than pons would at the price before the sale after its fee. So a seller is never worse off for the bid. - **A pump earns nothing.** The reference price only follows prices from earlier seconds, slowly (at most the deviation limit per update). Within the same transaction it cannot move. When pons is further from the reference than the deviation limit, the bid does not bid at all. - **Caps.** Per fill: half the deviation limit of the pons pool's ETH depth. Per window (an hour by default): the lower of a share of your budget and a share of what moving the price would cost a manipulator in pons fees. Per second: a share of the window cap. - **Bought tokens.** They wait on the socket until anyone calls `collectBidTokens`. Then they are burned with the token's own `burn()`, verified against its total supply (or sent to a wallet or a BurnSink, if you chose that).

Setting it up

1. Deploy it from the form (pick a profile: careful, standard or eager). 2. Add it to your socket pool's stack with both the BID and OBSERVE classes. Adding a hooklet waits the pool delay. 3. Call `initReference` with a price range you trust. The bid waits out its warmup. 4. Fund it with `fundBid` on the socket. Anyone can add to it.

Roles

- **Owner:** seeds the reference, pauses and resumes the bid, and withdraws the budget from the socket at any time (`withdrawBid`). Cannot change any setting. - **Anyone:** can fund the budget, `poke` the price, collect bought tokens, and retry a refused route with `flush`. - **The socket:** the only address that tells the bid about swaps.

Risks in plain English

- It spends your ETH. The bid pays more than the market (that is the point), within its caps. You buy your token back at a small premium to pons. - It only helps sellers who use your socket pool, not pons directly. - It pauses itself when the price moves too fast, when nobody has traded or poked for a while, or when the pons pool is thin. Sellers then get the pons price. - The reference price is seeded by you. Seed it inside a tight range: a reference seeded too high overpays sellers until it catches up (the socket still never lets a seller do worse than pons).

Fee lanes

| Lane | When | Default | |---|---|---| | SwapFee | on the bought tokens, once, when they are collected | 0.50% of the tokens |

Funding the budget is not charged.

What if

- **I want my ETH back?** Call `withdrawBid` on the socket from the owner wallet. It always works, paused or not. - **Someone pumps the price to sell into my bid?** They pay pons fees on the pump and the bid pays at most its reference price. Beyond the deviation limit it does not bid at all. - **The burn fails?** A token whose `burn()` does not verifiably reduce its supply is sent to the dead address instead. A refused wallet or BurnSink route waits here; anyone can call `flush`. - **The guardian switches it off?** Sells continue at the pons price, and the budget stays withdrawable.