Liquidity
Every market on Inference Markets holds its entire supply as liquidity from the block that created it. There is no seeding round, no LP to attract, and no way for anyone to pull the liquidity back out. The two positions belong to the Launchpad contract, and the contract has no function that removes liquidity — not for the creator, not for the owner, not for us.
The two positions
At launch the Launchpad mints 1,000,000,000 tokens to itself and places all of them into one Uniswap v4 pool, in two token-only ranges:
| Position | Tokens | Range | Role |
|---|---|---|---|
| Curve | 800,000,000 | [openingTick, capTick) |
the price walk from a $5,000 to a $35,000 market cap |
| Reserve | 200,000,000 | [capTick, maxUsableTick) |
everything above the cap |
Both ranges start entirely above the opening price, so both are pure token at creation and the pool needs no pair coin to open. The first buy is the first thing that pushes pair coin into the pool. Every purchase after that moves the price up the curve; every sale moves it back down and pair coin leaves the pool with the seller.
When the token sorts above the pair coin in the pool's ordering, the two ranges mirror across the tick axis, the reserve sits below capTick and the curve above it, and the liquidity is computed from the other side of the range. The result is the same market.
Why it cannot be removed
Read the contract: there is no removeLiquidity, no withdraw, and no owner path to either. The only call that touches a position after launch is collectFees, which anyone may send and which runs modifyLiquidity with a liquidity delta of zero on both ranges. A zero delta realizes the fees the position has accrued without moving a single unit of the position itself, and then takes the fee amounts to the Distributor (the holders' share) and the Treasury (the protocol's).
The test suite carries a fuzzed invariant handler for this: across random sequences of launches, buys, sells, collections, claims, sweeps and repricings, all sent by an unprivileged address, the liquidity in both positions never decreases and never drifts from the value stored on the market.
What this means when you trade
The depth you see is the depth that exists. It cannot be withdrawn ahead of you, and nobody holds an LP position that can be pulled while you are in the market. The flip side is that depth is fixed by the curve's shape rather than by demand: the same 800M tokens spread over the same range, whatever is happening. Price impact near the open is large in percentage terms because the market cap is $5,000.
The pool has no hook. The LP fee is static, set once between 1% and 3% at launch, and the fee the pool charges is the fee it charges forever.
Liquidity on the peg pools
The synthetic coins have their own liquidity, and it works differently. Each has a Uniswap V3 pool against USDC on the 0.30% tier, owned entirely by the PegManager, placed on one side of the feed price at a time: coin in the ask one tick spacing above, dollars in the bid one spacing below. That liquidity is not permanent — the manager burns and re-places it on every reprice, which anyone may call, and forwards the dollars above each coin's $10,000 bid target to the RedemptionVault. Inference coins has the placement rule and Coverage has what happens to the money.