the method

runs once at deployment. the instruction writes the protocol's fixed constants into program-owned state and seals them. it also confirms that the mint and freeze authorities have been renounced, and that no upgrade authority was set, so the program that runs after this point is the program that will run for as long as solana does.

invoked on every transfer of the token. a fixed share of each transfer (set by the transfer fee in basis points) is routed into the reserve account. the remainder reaches the recipient. the reserve account is owned by the program and can be touched by no other authority.

on the program's own cadence, the reserve spends a portion of its balance into the market. it buys the token at the prevailing price and pairs the purchased amount, together with the matching quote asset, into a liquidity position the protocol owns outright.

once the position exists, the program burns its withdrawal authority. the position can no longer be closed, migrated, or partially removed by any caller. the capital pledged to the floor is, from that moment, structurally unable to leave.

the program reads the owned, locked position and derives the backed level beneath the token. if that level exceeds the recorded floor, the floor steps up to the new level and a FloorRatcheted event is emitted. if the derived level is lower, the recorded floor is left unchanged. the instruction provides no path by which the floor may be reduced.