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Each market has two books, one per leg. A book lives entirely inside one Pool account: up to 16 bins stored inline, with no per-bin rent. The keeper’s book manager centres each book near NAV and posts a bin shape derived from live volatility. Since 11 Oct 2026 the books fill only while the market’s price is stale: outside Normal, with the last push more than 300 s old. While the keeper is pushing prices, pool_swap fails with PoolClosedWhileLive and trades go through committed orders.

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The reposition loop

Every 30 s, for each market and side:
  1. Feed the volatility state. One price sample per cycle goes into the spread engine. The state lives in memory, so a restart empties it, and until the ratchet has about 8 windows of data the spread falls back to its floors.
  2. Find the centre. The target is NAV moved by the inventory centre-shift (on by default). When the public holds more L than S, the protocol is left holding S, so the keeper quotes the long book dearer and the short book cheaper. The shift is at most half the narrower leg’s half-spread, never quotes inside the spread floor, and stays within the redeem-fee hurdle so a half-posted update cannot be arbitraged.
  3. Check the drift gate. The book re-centres only when the target has moved from the posted base by at least the gate. CLMM_REPOSITION_BPS (default 20) is a ceiling: on the side a move threatens, the keeper cuts the gate so the book re-centres, with 1 bp to spare, before NAV comes within the spread floor (oracle confidence plus a fixed cost) of the first funded bin.
  4. Compute the shape. The half-spread is the largest of the realized q90 ratchet, the slow auto-floor, oracle confidence plus cost, and the static floor (see the keeper concept page). Bins inside it stay empty. Liquidity starts at the bin whose offset is nearest the half-spread and falls off by a factor of 0.7 per bin outward. The protective skew then widens the side a continuing trend would hit and never tightens the other. The short book mirrors this automatically, since S = K / L × γ moves inversely to L. A side that cannot clear the floor stays unposted.
  5. Post it. set_pool_shape(base, asks, bids). On chain, the asks must fit in the pool’s synth vault and the bids in its cUSDC vault.

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Closed markets: the free-float book

When a market’s underlying stops trading, the keeper stops pushing its price. Once the last push is more than 300 s old, the program rejects mint and redeem, and the keeper switches that market’s books to free float. It posts one book per side, anchored at the last price with no inventory shift, with all of each side in one bin: the outermost funded bin within 1% of the last price. Each side is sized to one closed period’s demand: at least $500 (the default until the keeper has measured flow for the market), and never more than a risk cap on that market’s share of the treasury. There are no fixed dollar ceilings. The keeper holds that book until a fresh price returns, then re-centres it whatever the drift. It records the price each side’s book was posted at, beside its off-hours checkpoint, so a restart mid-episode adopts the book on chain as fills and the guard left it rather than posting a full one over it. The free-float guard (on by default) watches venues that keep trading while the underlying is shut: US pre- and post-market prints, CME and CFE futures, Hyperliquid perps, and tokenized gold and euro (PAXG, EURC) on Coinbase. When they show a move of 10 bps or more, the guard pulls the stale side’s bins: asks within the free-float half-spread of the highest price any venue shows, and bids within it of the lowest. Pulled bins return only after the venues have allowed it for 600 s without a break. The guard never moves the centre or adds depth, and with no venue reading it changes nothing.

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Inventory: refill, trim, bid cap

pool_swap fills only from pre-funded bins, so trading reshapes inventory. The keeper rebalances it every cycle, in both directions.
  • The keeper no longer restocks drained asks by minting pairs from swept bids; that task was removed on 13 Oct 2026. Pairs for the CLP’s stock are minted by imbalance control, with cash from the treasury (see Keeper → Imbalance control).
  • When a side’s asks are worth more than 1.5× its bids, the keeper sweeps the excess back to CLP custody with pool_sweep_synth, where it can provision committed orders. Ask depth the bid side cannot absorb is exit capacity nobody can use, and it invites arbitrage.
  • Each side’s bid cUSDC is held at the depth its next free-float book will post ($500 a side until the keeper has measured flow), and the pool vault’s excess goes to the CLP vault. While the market is open, sells go through the committed venue instead, which the keeper provisions at settlement.

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Why the books are lean

Toxic loss grows with deployed depth, while organic revenue is capped by demand, so depth beyond demand subsidizes arbitrage. That is why bid cUSDC is held at the next free-float book’s depth and asks are trimmed to a ratio of the bids. pool_swap charges no swap fee, so a book earns only its spread; the protocol’s other income is the mint and redeem fees and the committed-order spread.