Liquidity Launcher

Overview

Liquidity Launcher is a comprehensive launch system built on Uniswap V4 that facilitates token creation, distribution, and liquidity bootstrapping. The system provides a streamlined approach for projects to:

• Create new ERC20 tokens with extended metadata and cross-chain capabilities
• Distribute tokens through customizable strategies
• Bootstrap liquidity using price discovery mechanisms
• Deploy automated market making pools on Uniswap V4

The primary distribution strategy is a Liquidity Bootstrapping Pool (LBP) that combines a price discovery auction with automated liquidity provisioning with immediate trading liquidity.

Important Safety Notes

⚠️ Rebasing Tokens and Fee-on-Transfer Tokens are NOT compatible with LiquidityLauncher. The system is designed for standard ERC20 tokens and will not function correctly with tokens that have dynamic balances or transfer fees.

⚠️ Always use multicall for atomic token creation and distribution. When creating and distributing tokens, batch both operations in a single transaction with payerIsUser = false to prevent tokens from sitting unprotected in the LiquidityLauncher contract where anyone could call distribute().

Installation

This project uses Foundry for development and testing. To get started:

# Clone the repository with submodules
git clone --recurse-submodules <repository-url>
cd liquidity-launcher

# If you already cloned without submodules
git submodule update --init --recursive

# Install Foundry (if not already installed)
curl -L https://foundry.paradigm.xyz | bash
foundryup

# Build the project
forge build

# Run tests
forge test

The project requires the following environment variable for testing:

• FORK_URL: An Ethereum mainnet RPC endpoint for fork testing

Deployment Addresses

Liquidity Launcher

Network	Address	Commit Hash	Version
Mainnet	0x00000008412db3394C91A5CbD01635c6d140637C	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate
Unichain	0x00000008412db3394C91A5CbD01635c6d140637C	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate
Sepolia	0x00000008412db3394C91A5CbD01635c6d140637C	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate

VirtualLBPStrategyFactory

Network	Address	Commit Hash	Version
Mainnet	0x00000010F37b6524617b17e66796058412bbC487	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate
Sepolia	0xC695ee292c39Be6a10119C70Ed783d067fcecfA4	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate

LBPStrategyBasicFactory

Network	Address	Commit Hash	Version
Mainnet	0xbbbb6FFaBCCb1EaFD4F0baeD6764d8aA973316B6	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate
Unichain	0x435DDCFBb7a6741A5Cc962A95d6915EbBf60AE24	fd5be9b7a918ca3d925d985dff9bcde82b3b8a9d	v1.0.0-candidate

Audits

• 10/27 Spearbit

Core Components

LiquidityLauncher

The main entry point contract that orchestrates token creation and distribution. It provides two primary functions:

createToken deploys a new token through a specified factory contract. The launcher supports different token standards including basic ERC20 tokens (UERC20) and Superchain tokens (USUPERC20) that can be deployed deterministically. Tokens are created with metadata support including description, website, and image URIs.

distributeToken transfers tokens to a distribution strategy which handles the actual distribution logic. The system uses Permit2 for efficient token transfers, allowing users to approve once and execute multiple transactions without additional approvals.

Token Factories

The system includes two token factory implementations:

UERC20Factory creates standard ERC20 tokens with extended metadata. These tokens support Permit2 by default and include on-chain metadata storage. The factory uses CREATE2 for deterministic addresses based on token parameters.

USUPERC20Factory extends the basic factory with superchain capabilities. Tokens deployed through this factory can be created on multiple chains with the same address, though only the home chain holds the initial supply. This enables seamless cross-chain token deployment while maintaining consistency across networks.

Distribution Strategies

The distribution system is modular, allowing different strategies to be implemented. The main implementation is:

LBPStrategyBasic implements a Liquidity Bootstrapping Pool strategy that splits the token supply between a price discovery auction and liquidity reserves. The auction determines the initial price, which is then used to bootstrap a Uniswap V4 pool. After the auction completes, the contract migrates the liquidity to V4, creating both a full-range position and potentially a one-sided position for optimal capital efficiency.

The strategy validates parameters to ensure reasonable configurations, such as checking tick spacing and fee tier validity.

Warnings

Users should be aware that it is trivially easy to create a LBPStrategy and corresponding Auction with malicious parameters. This can lead to a loss of funds or a degraded expereience. You must validate all parameters set on each contract in the system before interacting with them.

Since the LBPStrategyBasic cannot control the final price of the Auction, or how much currency is raised, it is possible to create an Auction such that it is impossible to migrate the liquidity to V4. Users should be aware that malicious deployers can design such parameters to eventually sweep the currency and tokens from the contract.

We strongly recommend that a token with value such as ETH or USDC is used as the currency.

Supporting Infrastructure

Permit2Forwarder handles token approvals through the Permit2 protocol, providing a unified approval interface that reduces the number of transactions users need to sign.

HookBasic provides Uniswap v4 hook functionality, allowing the LBP strategy to act as a hook for the pools it creates.

Contract Interactions

Typical Launch Flow

The typical flow for launching a token involves several coordinated steps:

1. Token Creation and Distribution

• Use multicall to atomically call LiquidityLauncher.createToken() and LiquidityLauncher.distributeToken()
• Set payerIsUser = false since tokens are already in the launcher after creation

For the LBP strategy, the distribution configuration includes:

• Allocation Split: Division between auction and liquidity reserves
• Pool Parameters: Fee tier and tick spacing for the Uniswap V4 pool
• Auction Parameters: Duration, pricing steps, and reserve price
• LP Recipient: Address that will receive the liquidity position NFT

2. Auction Phase

The distribution strategy deploys an auction contract and transfers the allocated tokens. The auction runs according to the specified parameters, allowing users to bid for tokens at decreasing prices.

3. Price Discovery Notification

Once the auction completes, it transfers the raised funds to the LBP Strategy and the strategy grabs the final clearing price.

4. Migration to Uniswap V4

After a configurable delay (migrationBlock), anyone can call migrate() to:

• Validate a v4 pool can be created
• Initialize the Uniswap V4 pool at the discovered price
• Deploy liquidity as a full-range position
• Create an optional one-sided position
• Transfer the LP NFT to the designated recipient

Note: To optimize gas costs, any minimal dust amounts are foregone and locked in the PoolManager rather than being swept at the end of the migration process.

Key Interfaces

ILiquidityLauncher defines the main launcher interface for creating and distributing tokens.

IDistributionContract implemented by contracts that receive and distribute tokens. The onTokensReceived() callback ensures contracts are notified when they receive tokens.

IDistributionStrategy implemented by factory contracts that deploy distribution contracts. The initializeDistribution() function creates new distribution instances.

ITokenFactory defines the interface for token creation factories, standardizing how different token types are deployed.