The B.A.S.E. Liquidity Engine
The Backstop Automated Security Environment is a custom LP Management system that enables less risk for early adopters.
Two conditions must be met for an LP to be created on BuilDeFi
A token must complete the fair launch period specified by the token builder
If paired with a single LP, the token must have achieved the minimum amount of participation during the fair launch period of .1 ETH. (If paired with multiple LP's the added participation thresholds of .01 ETH per added LP must be met.)
When both conditions are met the LP gets created.
The initial liquidity starts with a small full range LP and 2 Single Sided Liquidity Positions (SSL). The ETH gets dripped into the LP supporting the initial mint price, while the SSL positions slowly dissolve into one large full range LP over time.
After Fair Launch Mint Period Ends
Once the Fair Launch time period ends, and the minimum LP threshold has been met, all ETH allocated to the LP starts going to the Add LP contract. The contract will start accumulating any tokens required for the LP in a similar fashion to a buy and burn - called 'Add to LP'. There is a cap per swap and interval wait time.
Cap per swap = 10% of tokens needed for LP
If slippage is greater than 15%, the swap amount is reduced by 20% until it meets the threshold to make the swap
Interval wait = 10% of total mint phase time to launch
For example, 10 day fair launch = 1 day interval wait time
Initial LP Creation
After the token mint phase has ended and reached the LP threshold amount, there is a publicly callable function to initialize the LP. Tokens are minted for the full range and single sided liquidity (SSL.)
10% of ETH allocation used for full range LP. This amount is capped at the amount of ETH required to pair against the total tokens minted for LP.
Token/ETH full range LP
The remaining tokens are used for the SSL. if no tokens remain, there is no SSL created.
Upper tick = infinite
Lower tick = mint price
10% of ETH allocation used for SSL. This is the initial SSL creation that the Add LP Function will continue to inject liquidity into.
Upper tick = mint price
Lower tick = 90% below mint price
80% of ETH allocation used for the Add LP Function
LP Injection - Add LP Function
After 20% of the ETH is used for the initial LP, the rest of the ETH stored in the Add LP Function is used to inject liquidity into the LP's slowly. This function is publicly callable.
Interval Wait Time = same as mint phase
Cap per LP Add = same as mint phase
If price is below current SSL upper tick:
Use half the available ETH for LP add to buy token
Use other half of ETH to pair with token and add to full range LP
If price is above current SSL upper tick:
Deposit cap per add available ETH for LP to single sided liquidity position (SSL)
Rebalance LP function
This is a publicly callable function that can be initiated once a week (adjustable by admin). When initiated, both SSL positions get rebalanced and add to the full range LP.
pull token single sided liquidity (SSL)
add all ETH + required tokens to full range LP
add remaining tokens to SSL at range:
upper tick = infinite
lower tick = current price
pull base layer single sided liquidity (SSL)
add all tokens + required ETH to full range LP
add remaining ETH to SSL at range:
upper tick =
if current price is greater than current upper tick by min 20%, then increase upper tick 10% percent above current setting.
if current price is greater than current upper tick 0% - 20%, then do not change setting
if current price is below current upper tick, then use current price
lower tick = unchanged
Initial LP Example 1
Token Mint Options Selected
Name = FINGER
1 eth = 100 tokens
8% minted for LP
90% ETH Allocation to LP pairs
100% primary pair with ETH
Mint Phase
10 eth comes in = 1000 tokens minted by users
8% of total token minted = 80 FINGER tokens minted for LP
90% of eth from mint = 9 ETH for LP
Initial LP Creation
Primary Pair
80 FINGER
9 ETH
10% for full range LP = 0.9 ETH *** Capped at 0.8 ETH because there are only 80 total FINGER available to pair against the ETH
10% for SSL = 0.9 ETH
80% for Add LP function = 7.2 ETH + 0.1 ETH from leftover full range position
Full Range LP
80 FINGER / 0.8 ETH
0 FINGER available for single sided LP
0.9 ETH used for single sided LP
upper bound tick = 1:100 ratio (mint price)
lower bound tick = 0
7.3 ETH for Add LP Function
Initial LP Example - 2
Token Mint Options Selected
Name = FINGER
1 eth = 100 tokens
8% minted for LP
50% ETH Allocation to LP pairs
70% primary pair with ETH
30% secondary pair with FIST
Mint Phase
10 eth comes in = 1000 tokens minted by users
8% of total token minted = 80 FINGER tokens minted for LP
50% of eth from mint = 5 ETH for LP
LP Creation
Primary Pair
70% of 80 FINGER = 56 FINGER
70% of 5 ETH = 3.5 ETH
10% for full range LP = 0.35 ETH
10% for SSL = 0.35 ETH
80% for Add LP function = 2.8 ETH
Full Range LP
35 FINGER / 0.35 ETH
21 FINGER used for single sided LP
upper tick = infinite
lower tick = 1:100 ratio (mint price)
0.35 ETH worth of FIST used for single sided LP
upper bound tick = 1:100 ratio (mint price)
lower bound tick = 0
2.8 ETH for Add LP Function
Secondary Pair
30% of 80 FINGER = 24 FINGER
30% of 5 ETH = 1.5 ETH
10% for full range LP = 0.15 ETH worth of FIST
10% for SSL = 0.15 ETH worth of FIST
80% for Add LP function = 1.2 ETH worth of FIST
Full Range LP
15 FINGER / 0.15 ETH worth of FIST
9 FINGER used for single sided LP
upper tick = infinite
lower tick = 1:100 ratio (mint price)
0.15 ETH worth of FIST used for single sided LP (via Add LP Function)
upper bound tick = 1:100 ratio (mint price)
lower bound tick = 0
1.2 ETH worth of FIST for Add LP Function
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