Overview & value flow
The whole mechanism on one page — who pays what, and where value goes.
Sell → covenant (20% exit debt)
What happens when you sell — the 20% retention, the frozen discount, and the 7-day expiry.
Buy → absorption (5–20% discount)
How buys absorb covenant debt FIFO at a discount before touching the pool.
Expiry (7 days) → locked LP
Unabsorbed covenant debt is settled into a permanent, protocol-owned liquidity position.
The 3% creator tax
A flat 3% ETH tax on every trade, routed to an immutable creator address.
Covenant lifecycle
Every state a covenant moves through, from creation to absorbed or locked.