etherhookHow Etherhook works
An Etherhook coin is a normal ERC-20 on Ethereum with a strategy wired into its pool. Every trade pays a tax the creator sets at launch, from 1% to 10%. The platform keeps 1%; the creator decides where the rest goes: a vault that backs the coin, a fund that buys back on dips, locked liquidity, holders, or themselves. Once launched, the strategy runs by itself and nobody can change it.
- Supply
- 1,000,000,000
- Start market cap
- $5,000
- Tax
- 1% – 10%
- Platform
- 1%
Launching
- Name it. Name, ticker and logo. Name and ticker are written into the coin and can't change.
- Pick the backing token. ETH, USDC, WBTC, staked ETH, tokenized gold, or any token with a Uniswap pool against ETH or USDC holding at least $10,000 on that side. The form checks it on Ethereum as you pick.
- Set the tax, 1% to 10% in steps of 0.5%, the same on buys and sells.
- Split it: everything above the platform's 1% goes to the creator, holder rewards, the vault, the buyback fund, auto-burn and auto-LP, in steps of 0.05%.
- Pick protections: anti-snipe, anti-MEV, a max per trade, and vesting for your own share.
- Set the options: take-profit target, redeem on or off, and what holders are paid in.
- Launch, with an optional first buy in the same transaction.
All 1,000,000,000 coins go into a Uniswap V4 pool against the backing token at a $5,000 market cap. Nobody gets an allocation. The coin trades from the first block.
The split
The tax is taken in the backing token on every buy and sell, through any app, router or bot. The creator sets it at launch, anywhere from 1% to 10%. 1% goes to the platform; the rest is divided the way the creator chose:
| Share | What it does |
|---|---|
| Creator | Paid to the creator's wallet in the backing token, claimable any time. |
| Holder rewards | Spread across everyone holding the coin, by balance. |
| Vault | Held in the backing token. Backs every coin and feeds take-profit and redeem. |
| Buyback fund | Waits for a 20% dip, then buys the coin and burns it. |
| Auto-burn | Buys the coin right after each trade and burns it. |
| Auto-LP | Added to the coin's pool as liquidity that can never be removed. |
Vault
The vault's share of each trade stays in the backing token and sits in the coin's vault contract. There is no withdraw function: not for the creator, not for anyone. It leaves only through take-profit or redeem, if the coin has them.
Each coin page shows the vault's balance, what it paid, and the backing per coin: the vault's value divided by the coins still in circulation. Burns raise it, because the same vault is then shared by fewer coins.
Dip buyback
The buyback fund grows with every trade. The contract tracks the coin's 30-minute average price and the highest it has reached since the last buyback. When the average closes 20% under that high, half the fund buys the coin and burns it.
The high then resets to the price at the buyback, so the next one comes after another 20% fall: −20%, then −36%, then −49% from the original high, each spending half of what's left plus whatever trading added in between. On the way up the fund just grows.
Using the 30-minute average means a single large sell can't trigger a buyback and buy into its own dump.
Take profit
A coin with a vault can set a take-profit target of +25%, +50% or +100%. When the vault is worth that much more than it paid for its backing token, it sells the gain, buys the coin and burns it. What the vault paid stays in it, so the backing never drops below its cost.
Redeem at backing
If redeem is on, any holder can burn coins and receive their share of the vault in the backing token: coins burned × backing per coin. Backing per coin stays the same for everyone else.
This puts a floor under the price. If the coin trades below its backing, buying it and redeeming pays, and that buying pushes the price back up. While the price is above backing, selling pays more than redeeming.
Auto-LP
The auto-LP share collects in the backing token. Each time it reaches $250, half of it buys the coin and both halves go into the coin's Uniswap V4 pool as full-range liquidity. The position belongs to the coin's contracts and has no withdraw function, so the liquidity stays forever.
A deeper pool means smaller price impact on every trade, in both directions: big buys move the price less, and so do big sells. The pool's trading fees on that liquidity stay in the position.
Auto-burn
The auto-burn share buys the coin from its own pool right after each trade and burns what it buys. Unlike the dip buyback, it doesn't wait for a signal: supply shrinks a little with every trade, up or down.
The two work well together: auto-burn for steady pressure, the dip buyback for the moments that matter.
Protection
Chosen at launch, shown on the coin page, and fixed after that.
| Setting | What it does |
|---|---|
| Anti-snipe | Buys pay a heavy tax at open (50%, 90% or 99%) that falls in a straight line to the coin's normal tax over 30 seconds to 5 minutes. Sells are never taxed extra. What snipers pay goes through the coin's split. |
| Anti-MEV | One swap per wallet per block in the coin's pool. A sandwich or a buy-and-sell in the same block reverts. |
| Max per trade | No single trade can move more than 0.5%, 1% or 2.5% of the supply. |
| Creator vesting | The creator's share unlocks linearly over 7 days to 1 year from launch, instead of being claimable right away. |
| Dynamic tax | Small trades pay the coin's tax. Trades big enough to move the price about 5% pay up to a higher cap the creator sets, never more than 10%. The extra is split like the rest of the tax. |
Holder rewards
The holder share of each trade is spread across every wallet holding the coin, in proportion to its balance, the moment the fee arrives. Pools and Etherhook's own contracts don't count as holders. Rewards already earned stay claimable after you sell.
The creator picks what holders are paid in:
- The backing token, as is.
- ETH, whatever the backing token is. A coin backed by WBTC can still pay holders in ETH.
- Up to four tokens, split equally and bought when you claim.
Trading
On the site you pay and receive ETH. If the backing token is something else, the router swaps through its Uniswap pool on the way in and out. Trades from anywhere else go through the same pool and pay the same tax, so the vault, the buyback fund and holders earn from every one of them.
The first minute
- Launch block: only the creator can buy.
- Opening window: if the creator turned on anti-snipe, buys pay a high tax that falls to the coin's own tax over the window they picked. What snipers pay goes through the same split.
Rules in the contracts
- The tax, its split and every strategy option are set at launch. No function changes them.
- Liquidity added by auto-LP can't be removed. Coins bought by auto-burn are burned.
- Total tax, dynamic or not, never goes above 10% after the opening window.
- Nothing can withdraw from a vault or a buyback fund. Vault assets leave only through take-profit or redeem; fund assets leave only as buybacks.
- Coins bought back are burned, never kept.
- Coins have no owner and no mint function. Supply only goes down.
FAQ
What's the point of backing a meme coin with another token?
It turns the coin into a position in something real. A PEPE strategy coin piles up PEPE with every trade, and its holders can see exactly how much stands behind each coin. With redeem on, that backing is a floor you can actually exit at.
Does the backing make the coin worth its price?
No. Backing is usually a small part of the price, especially early. The coin page shows both so you can see the gap. Redeem only guarantees the backing, not the market price.
Who triggers the buybacks?
The pool does. The check runs inside trades, so the first trade after the average crosses the line fires the buyback. No keeper or team action is needed.
Why half the fund, and why 20%?
Spending half leaves ammunition for the next dip. 20% on a 30-minute average filters out noise but still catches real drawdowns. Both are the same for every coin, so buyers know what to expect.
What tax should I pick?
Lower taxes trade more: bots, aggregators and scanners treat coins over 5% with suspicion, and every trader pays it twice, in and out. Higher taxes fill the vault and the buyback fund faster. Most strategy coins sit between 2% and 5%.
What does a launch cost?
Gas only, shown on the launch form at the current gas price. A first buy is optional.
Why was my backing token refused?
It needs a Uniswap V2, V3 or V4 pool against ETH or USDC with at least $10,000 on that side, so its price can't be pushed around cheaply. Fee-on-transfer and rebasing tokens don't work.
Contracts
All on Ethereum mainnet (chain 1). Readable on Etherscan.
Charts by TradingView.