50 lines
3.3 KiB
Markdown
50 lines
3.3 KiB
Markdown
# Open design questions
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**Update:** See [confirmed design decisions](design-decisions.md) for the November 6 questionnaire answers. Those decisions supersede the corresponding unanswered items below; the original questions and inline responses are retained as review history.
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## Backing and external redemption
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- Are special-minted tokens fully fungible with ordinary LiqETH/LiqSOL, including redemption and reward rights? Yes
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- How does Liq recognize AMM-controlled assets as backing without double counting assets and token claims? it doesn't change, only a new mint function will be added to Liq and only this contract will be able to call it. Withdrawl will be put behind a proxy
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- When a trader takes LIQ out of the AMM and redeems through Liq, who supplies the native asset and how does the AMM liability change? see latest diagram
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- Can Liq draw backing directly from the AMM, or does redemption create a payable? How does either route affect reserves and the AMM curve?
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- How are settled claims prevented from being paid or cancelled twice?
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## Multiple LPs and ownership
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- How is a later native-only deposit priced when reserves are imbalanced?
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- Does special minting always match the native contribution 1:1, or follow a different rule after initial bootstrap?
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- Are liabilities pooled pro rata or tracked per position?
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- How do partial exits, share transfers, position splits and additional deposits carry liability and accrued charges?
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- Are LP interests fungible tokens or position-specific records?
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## Yield-support payment
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- Is the charge assessed on total special issuance, net circulating exposure or another base?
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- Is 2.8% a fixed rate, an example or a dynamic benchmark? APR or compounded APY?
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- Do swap fees fund it, and what happens when fees are insufficient?
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- Does pool-held LIQ earn rewards? Who receives those rewards, and how are internal flows netted?
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- How are accrual, settlement cadence, missed cranks and arrears handled on each chain?
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## Curve and settlement
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- Is the swap invariant ordinary constant product or a specialized native/LIQ curve?
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- Is 1:1 conversion a principal accounting rule or an enforceable immediate redemption rate? How are reward indices and losses handled?
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- What additional equity/reserve buffer is required beyond E + L >= D?
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- How are reserve changes caused by payments and redemption settlement reflected in curve accounting?
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- Can withdrawals return both assets, as illustrated, or must native-only exit also be supported?
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## Chain-specific implementation
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- Ethereum: native ETH versus WETH reserve interface; permitted mint/burn and backing-transfer entrypoints; reward/accounting integration.
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- Solana: SOL versus wrapped SOL interface; authorized mint PDA, share accounting, transfer-hook accounts, reward treatment and withdrawal-receipt integration.
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- Both: atomic mint/liability creation, settlement-before-release, rounding direction, callback/reentrancy behavior and transaction failure rollback.
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## Next examples to draw and simulate
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1. External LIQ redemption while its special-mint liability remains open.
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2. A second LP depositing into a 150 ETH / 75 LiqETH pool.
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3. Partial withdrawal followed by LP-position transfer.
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4. Fees insufficient to meet accrued yield-support payments.
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5. Last LP exit with LIQ still circulating outside the pool.
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