Permanent Liquidity Lock mechanism
How graduation allocates liquidity, what burning LP rights means, and where BTC is held.
Liquidity at graduation
At the current 0.1 BTC graduation target, 50% of the raised BTC (0.05 BTC) and about 2,210,526 tokens seed the constant-product AMM pool. This allocation preserves the curve end price at the pool opening.
Burned LP withdrawal rights
LP units represent the right to remove liquidity rather than the assets used for swaps. The reviewed pool contract records its LP units at 0x000000000000000000000000000000000000dEaD, and the graduation ledger records the same burn address. Burning LP rights removes the LP redemption path; it does not burn the swap reserves.
No pool-contract withdrawal path
The reviewed pool contract has no liquidity-withdrawal or upgrade function, no admin withdrawal backdoor and no multisig pool-withdrawal path. Neither the creator, the satcap team nor an admin can redeem the burned LP units or pull reserves through that contract. The factory operator can synchronize recorded reserves subject to an invariant check; this is not a withdrawal function.
How the pool continues to cover swaps
The constant-product model uses x * y = k, where x is the BTC reserve and y is the token reserve. Buys add BTC and remove tokens; sells add tokens and receive BTC. Burning LP units removes the ability to redeem liquidity through the LP path, not the reserves needed for swaps. Reserve balances and prices change with trades, so locked liquidity does not guarantee a fixed BTC balance, an exit price or unlimited payouts.
Current BTC custody boundary
Current satcap graduation and swaps run on the internal BTC ledger. Pool BTC stays in the shared platform Hot Wallet, not in the reviewed pool contract. That wallet uses two co-signers for Bitcoin spends. A recorded burn address and the contract’s lack of withdrawal functions do not make the hot-wallet BTC cryptographically non-withdrawable.