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It looks to me to be a line counter with digital readout.Cool, is this based on sonar?
Yes, that is a simple counter.
There are magnets in one of the wheels.
The precision is around +-30mm at the moment. But I think it can be improved by changing the number and size of the magnets.
+/- 30mm over what distance so far? Looks pretty promising! I'm assuming the margin of error is based on the magnet size... Would it be possible to mount the magnet(s) in the main housing with only a narrow metal piece in the wheel?
How's the buoyancy so far? Has it been checked or calculated?