Liquidity
How MSS2 liquidity is funded, why it is permanently locked, and how trading fees are collected and reinvested.
Each chain's MSS2 liquidity sits in one Topaz position that no one can withdraw. Every mint adds to it, and the 3% trading fee it earns goes back into it.
The locked position
A dedicated vault contract holds a single full-range Topaz liquidity position, stored as a position NFT. The vault has no function to remove liquidity, transfer the NFT, approve it to anyone, or move its assets out. The owner cannot withdraw it either.
| Robinhood | Arc | |
|---|---|---|
| Pair | MSS2 / WETH | MSS2 / USDC |
| Range | Full range | Full range |
| Tick spacing | 2000 | 2000 |
| Trading fee | 3% | 3% |
| Opening funds | 0.01 ETH | 20 USDC |
How it grows
The opening seed
Before launch, the owner funds each pool once with 0.01 ETH on Robinhood and 20 USDC on Arc. This creates the pool at the opening mint price and pairs it with newly issued MSS2: 20,000 MSS2 on Robinhood and about 13,333.33 MSS2 on Arc. The seed does not move the mint price and pays no referral rewards.
Every mint
Each mint payment sends its liquidity share, 75% of what remains after referral rewards, into the position in the same transaction. The contract pairs it with newly issued MSS2 at the current pool price, so each deposit adds to both sides and generally leaves the price where it was.
For example, a 1 ETH mint on Robinhood with no referrer adds 0.75 ETH and the matching MSS2 to the pool. If that deposit cannot be made, the whole mint reverts and no payment is taken.
Trading fees
Every buy and sell pays a 3% trading fee. All of the fees the locked position earns are reinvested into it automatically: a keeper collects them and adds them back to the position on a schedule. Anyone can also trigger the same collect and reinvest at any time.
Fees are reinvested in balanced pairs. If one side builds up, the extra waits in the vault for a matching amount. The vault never swaps and never issues MSS2 to reinvest fees.
Why it matters
- MSS2's own position can only grow. Other people can still add and remove their own liquidity in the same pool.
- Price is set by trading. Minting adds liquidity at the current pool price and does not push the price toward the mint tier.
- Trading fees support liquidity, not staking. Staking rewards are separate token issuance.
Liquidity issuance limit
Each mint issues MSS2 into the pool to match its liquidity share at the current pool price. The lower the pool price, the more MSS2 that takes. To bound that, a mint can issue at most 10 times the tokens you are buying.
In practice this matters only if the pool price falls to roughly 7.5% of the tier price or lower. A mint over the limit is refused with no payment taken, and mints work again once the pool price recovers. There is no fixed waiting period. See Minting.
Details
- Deposit tolerance. Every deposit must use at least 99% of the intended amounts, or it reverts instead of depositing at a very different ratio.
- Trading fee. 3% on every trade. The app reads the fee from the pool for every quote.
- Arc units. Arc's USDC is 18 decimals as a native balance and 6 decimals as a token. The vault converts between them and leaves any sub-micro-USDC remainder in the vault for later deposits.
- Vault owner. The vault owner could prepare the pool before it was funded. After funding, the owner has no power over the position.
- Topaz. Learn more about Topaz pool fees in the Topaz docs.