diff --git a/dwarfctl/README.md b/dwarfctl/README.md
index ecf25e0..4dd8131 100644
--- a/dwarfctl/README.md
+++ b/dwarfctl/README.md
@@ -85,17 +85,100 @@ dwarfctl/
 ├── proto/dwarf.proto          # unified proto3 definitions (397 messages)
 ├── proto/dwarf.pb.go          # generated Go bindings (24948 lines)
 ├── internal/
-│   ├── transport/client.go    # WebSocket client + WsPacket envelope
+│   ├── transport/client.go    # WebSocket client + WsPacket envelope + heartbeat
 │   ├── api/
 │   │   ├── commands.go        # 323 command IDs + module routing
 │   │   └── client.go          # typed Telescope API (camera/motor/astro/...)
+│   ├── daemon/                # persistent server with HTTP control API
+│   │   ├── server.go          # WebSocket + camera + odometry manager
+│   │   └── client.go          # thin HTTP client for the daemon
+│   ├── rtspgrab/              # RTSP frame capture via ffmpeg
 │   └── odometry/              # FFT phase-correlation visual odometry
 │       ├── fft.go             # radix-2 Cooley-Tukey FFT (1D + 2D)
-│       ├── odometry.go        # Estimate() — shift between 2 frames → degrees
+│       ├── odometry.go        # Estimate() — translation + rotation
+│       ├── rotation.go        # log-polar phase correlation (rotation only)
+│       ├── rotate.go          # image rotation for de-rotation pass
 │       └── tracker.go         # Tracker — cumulative orientation integrator
 └── cmd/dwarfctl/main.go       # cobra CLI
 ```
 
+## Daemon mode
+
+The `serve` subcommand runs dwarfctl as a **persistent background service** that
+keeps the WebSocket connection, camera, and odometry tracker alive — exposing a
+local HTTP API for short-lived clients to query state or issue commands without
+reconnecting each time.
+
+```bash
+# Start the daemon (connects to telescope, opens camera, starts odometry loop)
+dwarfctl serve --ip 192.168.88.1 --cam wide
+
+# With custom settings
+dwarfctl serve --ip 192.168.88.1 --cam wide --addr 127.0.0.1:7777 \
+  --interval 5s --fov-h 8.0 --fov-v 6.5
+```
+
+### How it works
+
+1. Connects to the telescope WebSocket (port 9900) and keeps it alive with
+   periodic ping/pong heartbeats
+2. Switches to shooting mode 1 (photo/preview), then opens the camera — this
+   activates the RTSP server
+3. Starts the odometry loop: grabs frames at the configured interval, feeds
+   them to the Tracker, logs cumulative orientation
+4. Serves the HTTP API on the configured address until SIGTERM/SIGINT
+
+The odometry loop **auto-pauses** during motor slew (to avoid motion blur)
+and resumes after a settle delay (default 3 s). You can also pause and
+resume it manually via the HTTP API.
+
+### HTTP API
+
+All endpoints are relative to the daemon address (default `http://127.0.0.1:7777`).
+
+| Method | Endpoint | Description |
+|--------|----------|-------------|
+| `GET` | `/health` | Daemon status, IP, camera state |
+| `GET` | `/orientation` | Cumulative pan/tilt/rotation in degrees |
+| `GET` | `/grab?path=/tmp/x.jpg&raw=1` | Capture RTSP frame (returns path or raw JPEG) |
+| `POST` | `/reset` | Zero the odometry tracker |
+| `POST` | `/camera?action=open&cam=wide` | Open or close a camera |
+| `POST` | `/slew` | Slew joystick (`{"angle":90,"length":0.5}`) |
+| `POST` | `/stop` | Stop all motors |
+| `GET` | `/pause` | Pause odometry frame capture |
+| `GET` | `/resume` | Resume odometry frame capture |
+| `POST` | `/fov` | Override FoV (`{"h":8.0,"v":6.5}`) |
+
+### Using the daemon client
+
+The `--daemon` flag points CLI commands at a running daemon instead of connecting
+directly to the telescope:
+
+```bash
+# Terminal 1: start daemon
+dwarfctl serve --ip 192.168.88.1
+
+# Terminal 2: query orientation via daemon
+dwarfctl --daemon 127.0.0.1:7777 state
+
+# Or use curl directly
+curl http://127.0.0.1:7777/orientation
+curl http://127.0.0.1:7777/health
+curl -X POST http://127.0.0.1:7777/slew -d '{"angle":90,"length":0.3}'
+```
+
+### systemd deployment
+
+A systemd unit is provided in `deploy/dwarfctl.service`. Install it with:
+
+```bash
+sudo cp deploy/dwarfctl.service /etc/systemd/system/
+sudo systemctl daemon-reload
+sudo systemctl enable --now dwarfctl
+```
+
+Edit the unit to adjust `--ip`, `--cam`, and `--addr` to match your setup.
+
 ### Protocol summary
 
 | Layer | Transport | Port |