> For the complete documentation index, see [llms.txt](https://docs.pumphood.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pumphood.fun/under-the-hood/how-it-works.md).

# How it works

pumphood is a set of small, focused smart contracts on **Robinhood Chain**, wired to the chain's canonical **Uniswap V3** deployment. This page is the technical overview for the curious.

## The chain

**Robinhood Chain** is an Ethereum Layer-2 (Arbitrum Orbit) that uses **ETH as its native gas token**. Blocks are fast and gas is cheap, which is why actions on pumphood cost fractions of a cent.

### Why Uniswap V3

pumphood launches tokens straight into **Uniswap V3** pools rather than a custom bonding curve. The reason is compatibility: on Robinhood Chain, the entire trading ecosystem — DexScreener, Telegram bots, honeypot checkers, wallet swap features — understands V3 pools natively. Launching into V3 means a token is discoverable and tradeable everywhere from its very first block, with nothing to migrate later.

## The contracts

<table><thead><tr><th width="230">Contract</th><th>Role</th></tr></thead><tbody><tr><td><strong>PumpHoodFactory</strong></td><td>The launcher. One <code>deployToken</code> call creates the token, opens and prices its V3 pool, places the locked liquidity, funds the creator vault, and runs the optional initial buy — atomically.</td></tr><tr><td><strong>PumpHoodToken</strong></td><td>The token template. A standard ERC-20 with EIP-2612 Permit, a fixed supply, and its metadata URI stored on-chain. No mint, burn, pause, or tax functions.</td></tr><tr><td><strong>PumpHoodLPLocker</strong></td><td>Holds each token's liquidity position and splits collected trading fees 95/5 to the creator and platform. Fee collection is permissionless.</td></tr><tr><td><strong>PumpHoodVesting</strong></td><td>Holds the 10% creator vault and releases it on the vesting schedule. Claims are permissionless and always pay the beneficiary.</td></tr></tbody></table>

## The launch transaction, step by step

A single call to `deployToken(name, symbol, metadataURI, feeRecipient)` performs:

1. **Deterministic deploy** — the token is created at a predictable address via `CREATE2`, with the full 1B supply minted to the factory.
2. **Pool creation & pricing** — the token's Uniswap V3 pool is created and initialized at the fixed launch tick. The factory verifies the pool opened at exactly the intended price before continuing.
3. **Creator vault** — 10% of supply is transferred to the vesting contract and registered to the fee recipient.
4. **Locked liquidity** — the remaining 90% is minted as a single-sided V3 position held permanently in the locker.
5. **Optional initial buy** — if ETH was sent with the call, it's wrapped and swapped into the fresh pool, delivering tokens to the deployer before anyone else can trade.

## Metadata on-chain

Each token stores a reference to its metadata (name, image, description, socials) **on the token contract itself**, set at launch. This has two benefits:

* **Immutability** — the metadata is written by the creator in the launch transaction and can't be changed or hijacked afterward.
* **Speed** — the token list is read directly from the chain in a single batched call, with no external indexer, so it stays fast no matter how many tokens launch.

## Non-custodial by design

pumphood never holds your funds. Tokens, liquidity, fees, and vault allocations all live in on-chain contracts governed by fixed rules. Fee collection and vault claims are **permissionless** — anyone can trigger them, and the proceeds always route to the registered recipient.

Next up: [**Tokenomics →**](/under-the-hood/tokenomics.md)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.pumphood.fun/under-the-hood/how-it-works.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.