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Phase 3 — ✅ Live on Mainnet

Phased LP Strategy

400M IFR will create maximum value

1. Why NOT add all 400M to the pool immediately?

The Uniswap V2 AMM formula is simple: x * y = k. Every trade changes the ratio of the two reserves, and the price is derived from y / x.

The canonical Bootstrap price is P0 = 300,000,000 wei per IFR, derived from 0.030 ETH / 100,000,000 IFR. A USD conversion depends on the ETH/USD rate at the time and is not a protocol constant.

Key point: Adding assets in the pool's current ratio does not change the instantaneous spot price. Any reserve deployment therefore requires the matching WETH amount and a governance-approved objective; an IFR amount alone is not a liquidity-depth measurement.

Core problem: The actual Bootstrap LP started with 100M IFR + 0.030 ETH. Adding the full reserve at the same ratio would deepen the pool without improving price discovery. Reserve additions should therefore be governance-paced, not automatic. 

// AMM Constant Product Formula
x * y = k

// Actual Bootstrap P0: 0.030 ETH / 100,000,000 IFR
// P0 set by Proposal #16: 300,000,000 wei per IFR

// Pool before:  100M IFR + 0.030 ETH
// Same-ratio additions deepen liquidity but do not change price
// Governance should add reserves only when it improves market structure

2. The 4 Phases

PHASE 0 — After Bootstrap

Initial Pool: 100M IFR + 0.030 ETH

MILESTONE 1 — illustrative deeper pool

Example target: 150M IFR + 1.5 ETH

  • To buy 99% of the IFR reserve under the fee-free constant-product model requires 148.5 ETH input before the 0.30% V2 fee.
  • The actual initial 100M IFR / 0.030 ETH pool requires 2.97 ETH on the same curve-only basis.
  • These are reserve-depletion examples, not execution quotes; fees, routes, gas and market movement remain separate.
MILESTONE 2 — Pool = 5 ETH (~$10,000)

Governance Proposal: +100M IFR + proportional ETH

  • Pool significantly deeper
  • Manipulation becomes economically unprofitable
  • Professional market-making depth
MILESTONE 3 — Initial lock ended September 2026

LiquidityReserve remains held (200M IFR)

  • Current contract capacity is 50M IFR per 90-day period
  • 0 IFR had been withdrawn and no LiquidityReserve proposal was pending at block 25918433
  • Availability is not automatic LP deployment; Governance and a separate LP action are required
Bootstrap
→
Phase 0
→
1 ETH
→
5 ETH
→
Full LP

3. Constant-product depth comparison

For a Uniswap V2 pool with IFR reserve x and WETH reserve y, buying a fraction f of the IFR reserve requires Δy = y × f / (1 - f) before fees. At f = 99%, the required input is 99 × y. The result depends on the WETH reserve, not on an assumed USD price.

Scenario Reserves ETH input to buy 99% (curve only)
Executed initial pool 100M IFR / 0.030 ETH 2.97 ETH
Illustrative deeper pool 150M IFR / 1.5 ETH 148.5 ETH

Depth must be measured from both reserves and a stated trade size. Adding proportional IFR and ETH increases executable depth without changing the instantaneous reserve ratio. Governance must evaluate capital, expected trade sizes and price impact before any reserve deployment.

4. LP Reserve Safe

All 400.6M IFR of the Liquidity Reserve are held in a Gnosis Safe with 3-of-5 multisig:

Gnosis Safe 0x5D93E7919a71d725054e31017eCA86B026F86C04

Transparency: Every LP addition is publicly announced, approved via governance proposal, and documented on the Transparency page.