> For the complete documentation index, see [llms.txt](https://hoodstrategy.gitbook.io/hoodstrategy/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hoodstrategy.gitbook.io/hoodstrategy/readme/architecture.md).

# Architecture

HoodStrategy runs on **two smart contracts** that work together, leveraging Uniswap v4 and Chainlink.

## The two contracts

### The $HOODSTR token

A standard ERC-20 with **fixed supply** and no mint function after deployment. It holds the reward accounting (balances, reward debt, claimable amounts) and coordinates with the hook. On every balance change, buy, sell, transfer, it settles the pending rewards of the parties involved.

### The HoodStrategy hook (Uniswap v4)

A **v4 hook** is a contract attached to a Uniswap pool that runs code at precise points of the pool's lifecycle (before/after a swap). The HoodStrategy hook implements:

* **`beforeSwap`** — applies the 5/5 tax (and the anti-MEV spike) on $HOODSTR swaps.
* **`afterSwap`** — triggers the *harvest* (buy HOODX + update rewards) when the threshold and cooldown are met.

The hook is what makes the whole thing **atomic**: tax, HOOD purchase, and distribution happen in a single transaction — the one triggered by the trade itself.

{% hint style="info" %}
**Why Uniswap v4 and not v2/v3?** v4's hooks let us run tax + purchase + distribution inside a single pool-native transaction, at minimal gas cost thanks to *flash accounting* (all pools live in one contract, the `PoolManager`).
{% endhint %}

## External dependencies

| Dependency                         | Role                                     |
| ---------------------------------- | ---------------------------------------- |
| Uniswap v4 (`PoolManager`, hooks)  | AMM, tax, atomic swaps                   |
| HOODX (Backed / xStocks)           | Asset accumulated and distributed        |
| Chainlink price feed               | Slippage bound / HOOD reference price    |
| Chainlink Automation *(optional)*  | Backup trigger for harvesting            |
| Bridge (canonical / partner route) | Bringing HOODX in (outside the hot loop) |


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