πŸ›‘οΈ Liquidity Protection

The Problem

Before a Moonbound token graduates, it should only be tradable through its bonding curve on Moonbound. However, due to the permissionless nature of EVM-based DEXes, any user can manually create a liquidity pool (LP) for the token on any decentralized exchange β€” including ZealousSwap or other future DEXs.

If this happens before graduation:

  • It could prevent the graduation process from executing properly

  • In some edge cases, it could even be used to steal bonded KAS reserves

  • The system could be left in a state where it believes the LP is set up, but no tokens exist in it

This is a critical vector for abuse, especially if an attacker creates an LP with only KAS or only Moonbound tokens and then forces the factory contract to revert during addLiquidity or quote calls.


Solution Goals

Our goal is to:

  • 🚫 Prevent anyone from creating a working LP before graduation

  • βœ… Ensure only the official Zealous LP is created at graduation

  • βœ… Let the token freely trade on all DEXs after graduation

  • πŸ” Use arbitrage to stabilize any rogue LPs that appear after graduation


Final Solution: Centralized Blacklist + Zealous-Only Mint

Moonbound enforces this protection through three components:

1. DEX Blacklist Registry

A shared registry contract tracks blacklisted addresses:

  • Zealous router address (used to block early LP creation attempts)

  • The specific Zealous pair address for each token (computed at launch)

  • Other known DEX routers (e.g., Uniswap, Sushi, future Kaspa DEXs)

All Moonbound tokens consult this registry before allowing transfers.

2. Token-Level Transfer Restrictions

Moonbound tokens cannot be transferred to any blacklisted address until graduation. This blocks:

  • Direct LP creation

  • Transfers to DEX routers or factories

  • Early manipulation of token pools

Once a token graduates, it permanently ignores the blacklist.

3. Graduation via mint() (Not addLiquidity)

During graduation:

  • The bonding curve contract computes the Zealous pair address

  • It sends the KAS and token reserves directly to that pair

  • It calls mint() on the Zealous pair (not the router)

  • This bypasses all slippage calculations and liquidity quoting


πŸ’Ž Zealous LP as the Market Anchor

Moonbound guarantees that 25% of the token’s total max supply is reserved for the official ZealousSwap LP. This allocation comes directly from the bonding curve contract and is never sold, ensuring that the official liquidity pool holds substantial long-term value.

To enforce this:

  • The Zealous LP receives both 25% of the token supply and all bonded KAS collected

  • The LP tokens minted during graduation are immediately burned

  • Burning the LP tokens ensures that this liquidity is permanent and cannot be withdrawn, providing lasting price stability and preventing any form of rug-pull

This makes the Zealous LP the strongest and most trustworthy source of liquidity, which naturally becomes the dominant market pair post-graduation.


Why This Works

  • πŸ›‘ Blacklisting the router blocks 99% of casual LP creation

  • πŸ›‘ Blacklisting the Zealous pair ensures no malicious reserves are injected before graduation

  • βœ… Graduation uses mint() to finalize the LP manually

  • βœ… After graduation, price discovery happens on-chain via arbitrage

  • πŸ’Ž The Zealous LP holds 25% of supply and cannot be removed β€” it becomes the anchor for all pricing


Tradeoffs

Concern
Resolution

Future DEXs?

New DEX routers can be added to the registry at any time (until the blacklist is frozen)

Pair address uniqueness

Each token launch computes and blacklists its own Zealous pair address

Post-graduation forks

Accepted as a decentralized tradeoff β€” arbitrage stabilizes rogue markets


Additional Notes

  • The blacklist can be frozen permanently once all known DEXs are registered

  • Routers are reusable and can be auto-blocked via a default list on each token launch

  • Pair addresses are unique per token and must be computed and injected at launch

  • By design, Moonbound Tokens are ONLY available for trading on the Moonbound Bonding Curve prior to graduation.


TL;DR

We block LP creation by blacklisting DEX routers and Zealous pair addresses for each token. Graduation bypasses the router entirely and manually mints the LP using known reserves. The resulting LP contains 25% of the token supply, has its LP tokens burned, and becomes the permanent market anchor. After graduation, tokens can trade anywhere β€” with Zealous providing the strongest, deepest liquidity.


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