Liquidity Bootstrap

LiquidityBootstrap is the module that converts Genesis-allocated USDC into a single, deterministic Uniswap V4 position on Base. It is intentionally not a recurring market-making strategy: it is a one-shot seed of depth so the TRTH market opens with transparent, locked liquidity rather than ad-hoc treasury trading.

Funding source

The bootstrap uses USDC set aside from Genesis for liquidity, paired against a pre-funded TRTH allocation — 525,000 TRTH transferred to the bootstrap contract at deployment — that is consumed only for this one authorized deployment step. The design goal is credible initial liquidity — enough depth for price discovery — without an open-ended mandate to re-deploy or day-trade treasury funds.

Uniswap V4 pool and position

The flow creates or extends a Uniswap V4 pool between TRTH and USDC (or the configured quote asset). Concentrated liquidity means capital is deposited inside a tick range: liquidity is active near the chosen price and inactive far outside it, unlike full-range V2-style curves.

Position NFT and lock owner

V4 liquidity is managed via the Uniswap V4 PositionManager (using Permit2 approvals), producing a position NFT (an ERC-721). That NFT is the on-chain title to the position’s shares, fee accrual, and (if permitted) range updates. The protocol custodies the NFT in a protocol-owned vault (LiquidityPositionVault) or routes it to a lock owner — often a multisig or a lock contract — so post-bootstrap liquidity cannot be withdrawn casually.

Note

Tick bounds and pool fee tier define how tight liquidity is. Narrower ranges improve capital efficiency near the peg but require rebalancing if spot price moves out of range; wider ranges are more forgiving but use capital less efficiently.

One-shot discipline

Because deployment happens once, initial price, fee tier, and tick placement deserve extra scrutiny. Operators typically align ticks with launch expectations and documented risk bounds so participants understand the opening market structure.

Tip

Who holds the LP NFT after bootstrap is a security question: that party (or contract) controls withdrawal and fee collection for that range unless further restricted on-chain.

Together, Genesis USDC, authorized LP minting, V4 pool creation, and locked position NFT encode a clear initial AMM footprint for TRTH on Base.