Liquidity & settlement
The Liquidity page shows the permanent, protocol-owned liquidity that Covenant creates when covenant debt expires unabsorbed. This is the end state of the loop: sell pressure, rerouted into permanent depth.
What it shows
| Stat | Meaning |
|---|---|
| Locked at expiry | Total value settled into the locked LP position. |
| Expired covenants settled | How many covenants have reached settlement. |
| Seeded liquidity | The initial liquidity that launched the pool. |
| Absorption ETH reserve | ETH paid in by buyers, waiting to pair with future expiries. |
The conversion, step by step
The page visualizes the same permissionless flow described in Expiry → locked LP:
- Unabsorbed debt — a covenant reaches its 7-day mark still open.
- Permissionless sweep — anyone calls settlement (
expireMany). - Locked LP position — the CVN debt is paired with reserve ETH and minted into the CVN/ETH pool.
- Deeper pool — the position is permanent and protocol-owned; every future swap routes through slightly more liquidity.
Composition
The locked position is a full-range, protocol-owned CVN/ETH position. All pool liquidity in Covenant is protocol-owned and locked — it is never withdrawn. The page breaks it into its CVN side and ETH side, and lists the individual settled covenants (empty until the first covenant expires unabsorbed).
Every expired covenant strengthens the CVN/ETH pool that every future swap routes through.