Traditional on-chain automation often relies on off-chain transaction replays, which can be computationally expensive for use cases like arbitrage, liquidations, and real-time account indexing. InfiniSVM introduces Hooks, a built-in execution layer that enables automatic post-transaction logic, eliminating the need for off-chain re-execution.


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What Are Hooks?

A Hook is a user-defined transaction that automatically executes immediately after a targeted on-chain program updates its state. Hooks function as an embedded backrunning mechanism, enabling real-time on-chain automation.

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Key Use Cases

  • Automated Arbitrage: Execute arbitrage immediately when price disparities occur.
  • Liquidation Triggers: Liquidate under-collateralized positions without relying on off-chain monitoring.
  • Real-Time Accounting & Indexing: Update account balances and on-chain records efficiently.

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Technical Design of Hooks

Hooks in InfiniSVM operate similarly to transactions:

  • Users provide accounts and data when registering a Hook.
  • Gas fees are deducted from the fee payer’s account when the Hook executes.
  • If the fee payer lacks funds for three consecutive executions, the Hook is disabled.

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Hook Registration & Bidding Mechanism

InfiniSVM provides a precompile that manages Hook registration via a Dutch auction-based bidding system:

  1. Users submit bids to attach Hooks to specific on-chain programs.
  2. The top 16 bids per program are selected for execution in the following epoch.
  3. If multiple programs with Hooks are touched in a transaction, only 16 Hooks total will execute, prioritized by bid amount.
  4. After a transaction completes, Hooks execute in sequence.

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Economic Incentives & Fee Distribution

To encourage Hook adoption, InfiniSVM follows a 40-40-20 incentive model for executed Hooks:

  • 40% of the Hook bid is rewarded to the transaction initiator.
  • 40% goes to the program owner where the Hook was registered.
  • 20% is allocated to the network to cover execution overhead.

This model:

  • Reduces the cost of exhaustive transaction replays.
  • Rewards both users and program owners for enabling automated execution.
  • Offsets network resource consumption, preventing excessive Hook execution spam.

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Mitigating MEV & Ensuring Fair Execution

By embedding Hooks directly into InfiniSVM’s execution pipeline, the system:

  • Prevents off-chain MEV exploitation, as Hooks provide a transparent bidding mechanism.
  • Eliminates front-running risks, ensuring open competition for transaction-based automation.
  • Balances network overhead, restricting Hook execution to top-bid transactions.

InfiniSVM’s Hook mechanism provides a fair, scalable, and performance-optimized approach to automating post-transaction actions. By integrating real-time execution incentives, it enables trust-minimized, on-chain automation while ensuring efficiency and cost-effectiveness.

Hooks revolutionize on-chain programmability, unlocking real-time execution capabilities for DeFi, automated trading, and data indexing without requiring costly off-chain infrastructure.

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