Document single-sided Liq AMM design and original diagrams
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# Liq single-sided-funded AMM
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Design workspace for native-mainnet **ETH/LiqETH** and **SOL/LiqSOL** swap pools funded by single-sided native-asset deposits.
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**Status:** proposed design; no contracts implemented or deployment performed.
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## Core idea
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An LP deposits native assets. Liq specially mints matching LIQ inventory into the AMM and records a mint liability against the LP position. Trading changes the reserve composition. On withdrawal, the position settles its allocated liability before returning the residual assets to the LP.
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The diagrams also propose periodic yield-support payments from the AMM to Liq, triggered by a crank, and a post-swap solvency check.
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## Project contents
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- [Design and worked examples](docs/design.md)
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- [Open design questions](docs/open-questions.md)
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- [Original diagram index](diagrams/README.md)
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The Ethereum examples establish the proposed economic model. Solana needs its own implementation treatment for mint authority, Token-2022 share/transfer-hook accounting, reward distribution and withdrawal receipts.
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## Source basis
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Initial design supplied by Kyle on November 6, 2026 through four diagrams. Review consulted Wire-context MCP summaries for `wire-ethereum` and `capital-staking`; these are dated source descriptions, not verification of current deployments or implementation of this proposed AMM.
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No framework or contract language has been selected for this workspace yet.
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