|
| 1 | +--- |
| 2 | +id: Overview |
| 3 | +title: Overview |
| 4 | +sidebar_position: 1 |
| 5 | +--- |
| 6 | + |
| 7 | +# Introduction & Overview |
| 8 | + |
| 9 | +## What is the Uniswap Liquidity Launchpad? |
| 10 | + |
| 11 | +The Uniswap Liquidity Launchpad is a comprehensive framework for bootstrapping initial liquidity for Uniswap V4 pools through fair, transparent price discovery (see <a href='/whitepaper_cca.pdf' target='_blank' rel='noopener noreferrer'>whitepaper</a>). It combines three critical functions into a single, composable system: |
| 12 | + |
| 13 | +1. **Price Discovery** - Run fair auctions using a novel Continuous Clearing Auction (CCA) mechanism to establish market price |
| 14 | +2. **Liquidity Bootstrapping** - Automatically seed Uniswap V4 pools with auction proceeds at the discovered price |
| 15 | +3. **Token Creation** (Optional) - Deploy new ERC-20 tokens with rich metadata and optional cross-chain capabilities |
| 16 | + |
| 17 | +Unlike traditional approaches that rely on centralized market makers or expose participants to timing games and manipulation, the Uniswap Liquidity Launchpad provides a decentralized, mechanism-design-driven approach for establishing deep, sustainable liquidity from day one. |
| 18 | + |
| 19 | + |
| 20 | +### Key Benefits |
| 21 | + |
| 22 | +- **Fair Price Discovery** - Continuous clearing auctions eliminate timing games and establish credible market prices |
| 23 | +- **Immediate Deep Liquidity** - Seamless transition from price discovery to active Uniswap V4 trading with substantial initial depth |
| 24 | +- **Permissionless** - Anyone can bootstrap liquidity or participate in price discovery without gatekeepers |
| 25 | +- **Transparent** - All parameters set upfront; real-time visibility into price discovery progress |
| 26 | +- **Composable** - Modular architecture supports multiple auction formats and distribution strategies |
| 27 | +- **Gas Efficient** - Optimized implementations using Permit2, multicall, and efficient data structures |
| 28 | + |
| 29 | +## Core Components |
| 30 | + |
| 31 | +The Uniswap Liquidity Launchpad framework is built on three coordinated components that work together to bootstrap liquidity: |
| 32 | + |
| 33 | +1. **[Liquidity Launcher →](https://github.com/Uniswap/liquidity-launcher)** Central orchestration contract that coordinates distribution and liquidity deployment |
| 34 | +2. **[Token Factory →](https://github.com/Uniswap/uerc20-factory)** (Optional) Creates new ERC-20 tokens with metadata, or integrates existing tokens |
| 35 | +3. **Liquidity Strategies** - Modular contracts for different price discovery and liquidity mechanisms (prebuilt [LBP Strategy](https://github.com/Uniswap/liquidity-launcher) or [custom strategies](quickstarts/building.md)) |
| 36 | + |
| 37 | +Each component is designed to be composable and extensible, allowing you to customize your liquidity bootstrapping while maintaining security and fairness guarantees. |
| 38 | + |
| 39 | +## High-Level Architecture |
| 40 | + |
| 41 | + |
| 42 | + |
| 43 | +### Typical Liquidity Bootstrapping Flow |
| 44 | + |
| 45 | +The liquidity bootstrapping process follows a straightforward sequence from price discovery to active trading: |
| 46 | + |
| 47 | +1. **Prepare Token** (Optional) |
| 48 | + |
| 49 | + Launch a new token using `LiquidityLauncher.createToken()` via the factory, which deploys a UERC20 or UERC20Superchain token and mints the initial supply to the launcher. Alternatively, use an existing token and approve the launcher to distribute it. |
| 50 | + |
| 51 | +2. **Configure Liquidity Bootstrap** |
| 52 | + |
| 53 | + Set up your bootstrapping parameters: |
| 54 | + - **Auction parameters**: Supply release schedule, price floor, duration & timing, and graduation threshold |
| 55 | + - **Pool parameters**: Token split (max 50% to auction), fee tier & tick spacing, migration delay, and optional hooks |
| 56 | + |
| 57 | +3. **Start Price Discovery** |
| 58 | + |
| 59 | + Call `LiquidityLauncher.distributeToken()` to allocate tokens to the LBP Strategy. This deploys a CCA auction with the allocated tokens, and price discovery begins as participants submit bids. |
| 60 | + |
| 61 | +4. **Fair Price Discovery** |
| 62 | + |
| 63 | + As bids arrive, the auction continuously clears orders with automatic bid spreading, ensuring a uniform clearing price and real-time transparency for all participants. This establishes the fair market price for the token. |
| 64 | + |
| 65 | +5. **Auction Completion** |
| 66 | + |
| 67 | + When the auction ends, the system checks if the graduation threshold was met. If graduated, the process proceeds to liquidity migration. If not, all bidders receive refunds. |
| 68 | + |
| 69 | +6. **Liquidity Deployment** |
| 70 | + |
| 71 | + After the migration block delay, anyone can trigger `migrate()` to: |
| 72 | + - Initialize the Uniswap V4 pool at the discovered price |
| 73 | + - Deploy full-range liquidity using auction proceeds + reserve tokens |
| 74 | + - Deploy a one-sided position (if remaining tokens exist) |
| 75 | + - Mint the LP NFT to the position recipient |
| 76 | + |
| 77 | +7. **Active Liquid Market** |
| 78 | + |
| 79 | + The pool is now live on Uniswap V4 with deep initial liquidity, making the token immediately tradable across the entire ecosystem with sustainable market depth. |
| 80 | + |
| 81 | + |
| 82 | +## Next Steps |
| 83 | + |
| 84 | +- Learn about the [Continous Clearing Auction](./05-auction-mechanism.md) mechanism |
| 85 | +- Read the <a href='/whitepaper_cca.pdf' target='_blank' rel='noopener noreferrer'>whitepaper</a> to learn more about the mechanism |
| 86 | +- Dive into the repos below to see the code and start building |
| 87 | + |
| 88 | +## Smart Contracts |
| 89 | + |
| 90 | +| Contract | Description | Source | Mainnet Address | Unichain | |
| 91 | +|----------|-------------|--------|-----------------|----------| |
| 92 | +| **LiquidityLauncher** | Central orchestration contract | [liquidity-launcher](https://github.com/Uniswap/liquidity-launcher) | [0x00000008412db3394C91A5CbD01635c6d140637C](https://etherscan.io/address/0x00000008412db3394C91A5CbD01635c6d140637C) | Coming soon | |
| 93 | +| **UERC20Factory** | Standard ERC-20 token factory | [uerc20-factory](https://github.com/Uniswap/uerc20-factory) | [0x0cde87c11b959e5eb0924c1abf5250ee3f9bd1b5](https://etherscan.io/address/0x0cde87c11b959e5eb0924c1abf5250ee3f9bd1b5) | Coming soon | |
| 94 | +| **LBPStrategyBasicFactory** | LBP strategy factory | [liquidity-launcher](https://github.com/Uniswap/liquidity-launcher) | [0x00000010F37b6524617b17e66796058412bbC487](https://etherscan.io/address/0x00000010F37b6524617b17e66796058412bbC487) | Coming soon | |
| 95 | +| **ContinuousClearingAuction** | Continuous clearing auction factory | [continuous-clearing-auction](https://github.com/Uniswap/continuous-clearing-auction) |[0x0000ccaDF55C911a2FbC0BB9d2942Aa77c6FAa1D](https://etherscan.io/address/0x0000ccaDF55C911a2FbC0BB9d2942Aa77c6FAa1D) | Coming soon | |
| 96 | +| **Permit2** | Token approval manager | [Uniswap](https://github.com/Uniswap/permit2) | [0x000000000022D473030F116dDEE9F6B43aC78BA3](https://etherscan.io/address/0x000000000022D473030F116dDEE9F6B43aC78BA3) | [0x000000000022D473030F116dDEE9F6B43aC78BA3](https://etherscan.io/address/0x000000000022D473030F116dDEE9F6B43aC78BA3) | |
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