diff --git a/crates/xy-protocol/src/lib.rs b/crates/xy-protocol/src/lib.rs
index a344f10..33f24e9 100644
--- a/crates/xy-protocol/src/lib.rs
+++ b/crates/xy-protocol/src/lib.rs
@@ -1 +1,5 @@
 //! Wire types and config schema shared between the xy daemon and CLI.
+
+pub mod state;
+
+pub use state::ServerState;
diff --git a/crates/xy-protocol/src/state.rs b/crates/xy-protocol/src/state.rs
new file mode 100644
index 0000000..3fced82
--- /dev/null
+++ b/crates/xy-protocol/src/state.rs
@@ -0,0 +1,31 @@
+use serde::{Deserialize, Serialize};
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq, Serialize, Deserialize)]
+#[serde(rename_all = "kebab-case")]
+pub enum ServerState {
+    Stopped,
+    Starting,
+    Running,
+    Restarting,
+    Failed,
+    Stopping,
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn serializes_to_kebab_case() {
+        assert_eq!(
+            serde_json::to_string(&ServerState::Restarting).unwrap(),
+            "\"restarting\""
+        );
+    }
+
+    #[test]
+    fn deserializes_from_kebab_case() {
+        let s: ServerState = serde_json::from_str("\"failed\"").unwrap();
+        assert_eq!(s, ServerState::Failed);
+    }
+}