Documentation

Overview and economics

A Liquidity Pool pairs BTC with a token in a constant-product AMM: the pool keeps BTC reserve × token reserve constant on each trade, so every buy or sell moves the price along the curve. Liquidity providers deposit both sides and receive LP shares that represent a proportional claim on the community portion of the pool.

Every trade in an enabled pool pays the 1% trading fee, split 70% to the token creator, 20% to LP pool rewards and 10% to the platform treasury. LP rewards are distributed in BTC to providers in proportion to their shares, only for trades made while they hold those shares.

• Liquidity that was already in the pool before community deposits is protocol-locked and can never be withdrawn by community providers.
• Pools are currently enabled only for selected tokens, such as SCAT.

How to deposit

• Have both assets ready: BTC in your Trading Account and the token in your wallet holdings on satcap.
• Enter a BTC or token amount; the other side fills in automatically at the live spot pool price. Deposits must match the pool ratio within 1%, otherwise they are rejected.
• The minimum deposit is 10,000 sats on the BTC side.
• On the first community deposit, 1,000 shares are permanently burned as dead shares. This prevents share inflation attacks that could otherwise steal value from later depositors.
• Each deposit requires a fresh, single-use BIP-322 wallet approval signature that expires after 60 seconds.

What each value means

• TVL (Total Value Locked): the combined value of both the BTC side and the token side of the pool, shown in BTC and USD.
• Pool Share %: your LP shares as a fraction of all LP shares.
• 24h Volume and 7d Volume: total BTC traded through the pool over the last 24 hours or 7 days.
• Estimated APR: the LP fee share (20% of the 1% fee) of the last 24 hours of volume, annualized and divided by the community liquidity. It is an estimate based on past volume, not a promise.
• Unclaimed Rewards: BTC fees you have earned that are waiting to be claimed.
• Lock countdown: time left in the 24-hour minimum lockup before your liquidity can be removed.

Claiming rewards

You can claim accrued BTC fee rewards at any time, directly into your Trading Account, without removing liquidity and without waiting for the 24-hour lockup. Your pool share stays unchanged. Removing liquidity also automatically sweeps any remaining unclaimed rewards into your Trading Account.

24-hour lockup rule

Liquidity is locked for 24 hours after a deposit. This blocks flash deposits: adding liquidity just before a large trade to capture its fee and withdrawing right after, which would dilute long-term providers. Each new deposit resets the lock timer for that whole position to 24 hours.

Risks and impermanent loss

• Impermanent loss: when the token price changes relative to BTC, the pool rebalances your position toward the asset that fell. Your withdrawal can be worth less than simply holding the original BTC and tokens. The loss becomes permanent when you withdraw at a changed price; fees may or may not offset it.
• Price volatility and market risk: if the token price drops, the value of your paired holdings falls with it. Rewards are not guaranteed and depend on trading activity.
• Ledger risk: pools run on satcap’s off-chain ledger, not on-chain smart contracts. Deposits, removals, claims and trades are protected by atomic database locking in a fixed order and require BIP-322 signatures, and every pool action is kept in an immutable record, but platform and custody risks still apply.
• Removals are bounded by slippage: if the price moves more than 1% before settlement, the removal is cancelled rather than filled at a worse price.