Documentation
中文 →Everything you need to know about the Sovereign Liquidity Protocol.
Contents
Current Protocol Fees
Live from on-chain protocol state
What is $overeign Protocol?
$overeign Protocol is a token launchpad where everyone gets paid. Creators launch tokens, investors fund the liquidity, and trading fees flow back to the people who made it happen — starting with the investors who took the risk.
Here's the deal: when you fund a token launch, you get paid back first. 100% of all trading fees go to investors until they've recovered every coin they put in. Only after that does the creator start earning. No rug-pulls, no locked-and-forgotten funds — just aligned incentives from day one.
Behind the scenes, a purpose-built swap engine called SLAMM makes this possible. It eliminates the value leak that plagues traditional exchanges (called impermanent loss), keeps liquidity permanently locked so creators can't pull the rug, and gives investors a governance vote to recover their capital if a project goes quiet. Your trash, your rules.
How It Works
The protocol supports two launch modes:
Token Launch
Create a brand-new token with the protocol. Set your token name, symbol, supply, and metadata. The protocol mints the token via Token-2022 and manages the full lifecycle.
BYO Token (Bring Your Own)
Already have a token? Deposit it into a $overeign to bootstrap liquidity. The creator deposits a portion of supply into the protocol, and LPs fund the GOR side. Works with both SPL Token and Token-2022 mints.
Both modes follow the same lifecycle:
- Creator launches — Create or deposit your token, set your funding goal, and rally Liquidity Providers behind your vision
- LPs deposit GOR — Liquidity Providers deposit GOR to establish the price floor and earn fees
- Bond completes — If the target is met, the SLAMM engine creates the liquidity pool automatically
- Recovery phase — 100% of trading fees flow to Liquidity Providers until they recover their GOR
- Active phase — Fees split between Liquidity Providers, creators, and traders via bin fees. Passive income for all
The SLAMM Engine
SLAMM ($overeign Liquid Automated Market Maker) is the swap engine that powers every $overeign. It works differently from traditional exchanges: buys and sells are priced separately, which is how it eliminates the hidden cost that drains value from investors on other platforms (known as impermanent loss).
Your GOR and the token are held in separate vaults — they're never mixed together. This means the value of your investment can't decline just because the token price moves. Your GOR stays your GOR.
And unlike most exchanges that skim a cut of every trade for themselves, SLAMM takes zero protocol fees. Every single basis point of trading fees goes to the people who built and funded the $overeign — investors, creators, and traders. No middleman tax.
How Buying Works
Buys use standard constant-product pricing (CPAMM: x × y = k) for smooth, continuous price discovery. As demand increases, the price rises naturally — just like any exchange.
The token supply is divided into bins — small groups that let the engine track exactly what each wave of buyers paid. As buys fill each bin, the engine records the GOR spent, creating a locked purchase rate for that bin.
How Selling Works
Sells do not use the same pricing curve. Instead, each filled bin pays out at its locked rate — the weighted-average price that buyers paid into that bin, plus any accumulated fee bonuses. This means sellers are paid based on real demand, not an arbitrary curve.
Solvency Guarantee
The engine enforces a hard invariant on every single trade: GOR reserves can never drop below the original bonding amount. The pool always has enough GOR to back every token in circulation. This on-chain check runs automatically — no trust required.
SLAMM vs Traditional AMMs
| Feature | SLAMM | Traditional AMM |
|---|---|---|
| Buy pricing | CPAMM (smooth) | Standard curve pricing |
| Sell pricing | Locked-rate (historical avg) | Same curve as buy |
| Impermanent loss (LPs) | Eliminated | Always present |
| LP withdrawal | Permanently locked while active | Withdrawable (rug risk) |
| Solvency floor | Enforced on-chain | None |
| Fee beneficiary | 100% to LPs until recovery, then Creators, LPs & traders — zero protocol skim | Protocol takes a cut, remainder to LPs |
The $overeign Lifecycle
1. Bonding Phase
The creator sets a GOR bond target (minimum set by protocol governance) and a duration (7-30 days). Liquidity Providers deposit GOR to fund the liquidity pool. If the target is met, the $overeign proceeds to finalization. If not, all depositors get a full refund — no risk.
2. Recovery Phase
Once bonding completes, the SLAMM engine creates the liquidity pool and trading begins. Liquidity Providers receive $overeign NFTs representing their share. During recovery, 100% of all trading fees flow to $overeign NFT holders until they've recovered their original GOR deposit. The creator earns zero fees during this phase.
3. Active Phase
After Liquidity Providers recover their principal, the $overeign enters the Active phase. Trading fees now split between Liquidity Providers, the creator, and traders via bin fee bonuses. The liquidity remains permanently locked — passive income for everyone. The creator can also claim their share of accumulated fees.
Current Fees & Revenues
The SLAMM engine has a multi-layered fee system designed to align incentives:
| Fee Type | Rate | Description |
|---|---|---|
| Swap Fee (Recovery) | 1% - 3% | Creator-chosen rate during Recovery — 100% to Liquidity Providers to accelerate principal recovery |
| Swap Fee (Active) | 0.30% | Protocol default rate after recovery completes — split between Liquidity Providers, creator, and bin traders |
| Transfer Fee | 0% - 3% | Token-2022 transfer fee on sells — set by creator at launch. Can be renounced (permanently set to 0%) |
| Creation Fee | 1.00% (up to 10%) | Of bond target — paid to protocol treasury at creation (non-refundable) |
| Governance Unwind Fee | 0.05 GOR | Fee to create an unwind proposal (available during Recovery or Active phase) |
| Unwind Fee | 5% - 20% | Taken from GOR returned during governance unwind |
Fee Distribution by Phase
| Phase | Liquidity Providers | Creator | Traders (Bin Fees) |
|---|---|---|---|
| Recovery | 100% | 0% | 0% |
| Active | 35% | 35% | 30% of swap fees |
LP fees are distributed proportionally based on each Liquidity Provider's deposit share via on-chain per-share accounting. Traders who bought into bins earn accumulated bin fee bonuses when they sell (default 30% of swap fees, max 50%).
Governance
$overeign Protocol gives both creators and Liquidity Providers governance controls to manage their $overeign throughout its lifecycle:
Creator Controls
- • Adjust transfer fee — change the Token-2022 transfer fee on sells (0% - 3%)
- • Renounce transfer fee — permanently set transfer fee to 0% and remove the authority (irreversible)
- • Set creator fee wallet — redirect creator fee earnings to a different wallet
Liquidity Provider Controls (via $overeign NFT)
- • Claim fees — claim your proportional share of accumulated trading fees on-chain
- • Vote on proposals — each $overeign NFT carries one vote, weighted by deposit amount
- • Propose unwind — any NFT holder can propose an unwind vote for their $overeign
- • Transfer position — sell or transfer your $overeign NFT (governance rights transfer with it)
Protocol-Level Governance
- • Set default swap fee — protocol authority sets the post-recovery swap rate (currently 0.30%)
- • Adjust bin fee share — change the portion of fees allocated to bin bonuses (up to 50%)
- • Adjust creator fee share — change the creator's share of post-recovery fees
- • Emergency pause — pause the protocol in case of critical issues
Voting rules: Only $overeign NFT holders can vote — creators cannot participate. 67% quorum required with 51% approval to pass. If the vote passes, an observation period begins (default 90 days) during which trading continues. If fee growth stays below the threshold during observation, the unwind can be executed.
Failed Project Protection
While permanently locked liquidity gives creators peace of mind, Liquidity Providers need an exit path if a project fails to gain traction. $overeign Protocol solves this with a novel Dead Pool mechanism:
- • Each pool has a minimum volume threshold measured over an observation period (30-365 days, default 90)
- • If trading activity falls below this threshold, the pool becomes eligible for governance unwind
- • Liquidity Providers can then vote to unlock the pool and recover their capital
- • Creators cannot vote — only LPs who deposited GOR participate in the governance process
- • This ensures LPs are never permanently stuck in dead projects while still giving active projects the stability of locked liquidity
$overeign NFTs
When bonding completes, each Liquidity Provider receives a $overeign NFT representing their share of the liquidity position:
- • Tracks your share — proportional to your GOR deposit
- • Earns fees — claim your portion of trading fees on-chain
- • Transferable — sell or transfer your position
- • Governance rights — vote on unwind proposals (during Recovery or Active phase)
Note: Creators do NOT receive $overeign NFTs. During recovery, their fee share is locked. After recovery, creators can claim their accumulated share.