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Documentation Index

Fetch the complete documentation index at: https://docs.inkyswap.com/llms.txt

Use this file to discover all available pages before exploring further.

This page describes the V1 liquidity model. V2 uses a different mechanic. See Bonding to Uniswap V4 for the current system.

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Two phases of V1 liquidity

V1 tokens went through two phases.

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Phase 1: Bonding curve

During the curve phase, there was no traditional liquidity pool. The TokenFactory contract held all ETH paid in and minted tokens out according to an exponential curve. Price was determined by the curve formula. There was no impermanent loss because there were no LPs.
Sale supply800,000,000 (80 percent of total)
Target raise3 ETH
Curve formulaprice = a * e^(b * x)

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Phase 2: Uniswap V2 finalization

Once a token raised the 3 ETH target, the contract added liquidity to a Uniswap V2 pair and burned the LP tokens. From that point on the token traded on Uniswap V2 like any other token.
Liquidity supply200,000,000 (20 percent of total)
LP burn100 percent of LP tokens sent to the zero address
Trading after bondUniswap V2 pair

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Why LPs were burned

Burning the LP tokens removed the ability for anyone to withdraw liquidity. This made the pool permanent. No rug pull is possible because no one holds the LP, including the protocol.

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How to verify a V1 token bonded

  1. Look up the token’s Uniswap V2 pair on the Ink explorer
  2. Check that the LP token balance of the burn address (0x000000000000000000000000000000000000dEaD or 0x0) equals the total LP supply
  3. Confirm the pair has ETH and the token in its reserves

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How V2 differs

V2 does not use Uniswap V2 or burn LP tokens. V2 bonds to a Uniswap V4 pool with a hook. The mechanic and the post bond fee model are different. See Bonding to Uniswap V4.