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Liquidity Management

The protocol uses Raydium's Concentrated Liquidity Market Maker (CLMM) for efficient liquidity.

CLMM Integration​

ParameterValue
Pool TypeRaydium CLMM
Token PairPORB / WSOL
Initial Price0.0001 SOL/PORB
Price Range-30% to +∞
Slippage Tolerance500 bps (5%)

Liquidity Flow​

┌─────────────────────────────────────────────────────────────────┐
│                    LIQUIDITY ARCHITECTURE                        │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│   ┌─────────────┐                    ┌─────────────────────┐    │
│   │   LP Vault  │◄──── Game Fees ────│    Game Rounds      │    │
│   │   (WSOL)    │                    │                     │    │
│   └──────┬──────┘                    └─────────────────────┘    │
│          │                                                       │
│          │                                                       │
│          ▼                                                       │
│   ┌──────────────────────────────────────────────────────┐      │
│   │                  Raydium CLMM Pool                    │      │
│   │                   PORB / WSOL                          │      │
│   │                                                       │      │
│   │  ┌─────────────────────────────────────────────┐     │      │
│   │  │  Concentrated Liquidity Position            │     │      │
│   │  │  Range: -30% to ∞                          │     │      │
│   │  │  Position NFT: LOCKED                       │     │      │
│   │  └─────────────────────────────────────────────┘     │      │
│   │                                                       │      │
│   └──────────────────────────────────────────────────────┘      │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

Fee Accumulation​

Protocol fees flow to the LP vault:

Player Entry Fee
    │
    ├── 80% → Prize Pool
    │
    └── 20% → Protocol
            │
            ├── 50% → LP Vault ← Accumulates here
            │
            └── 50% → Dev Wallet

Buyback Mechanism​

When the LP vault accumulates sufficient SOL:

┌─────────────────────────────────────────────────────────────────┐
│ BUYBACK OPERATION                                                │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│   [1] Threshold Check                                            │
│       └── LP vault balance >= minimum                           │
│                                                                  │
│   [2] Execute Buyback                                            │
│       └── Swap 50% of vault: WSOL → PORB                         │
│       └── Via CLMM swap                                          │
│                                                                  │
│   [3] Add Liquidity                                              │
│       └── Remaining 50% WSOL + bought PORB                       │
│       └── Increases pool depth                                   │
│                                                                  │
│   [4] Repeat                                                     │
│       └── Process continues as fees accumulate                  │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

Buyback Algorithm​

fn execute_buyback(lp_vault_balance: u64) -> Result<()> {
    // Calculate buyback amount (50%)
    let buyback_amount = lp_vault_balance / 2;

    // Validate minimum
    require!(buyback_amount > MIN_THRESHOLD);

    // Execute swap via CLMM
    let swap_instruction = build_swap_instruction(
        input: buyback_amount,  // WSOL
        output: PORB,
        slippage: 500,  // 5% max
    );

    invoke_signed(swap_instruction, vault_authority_seeds)?;

    // Remaining 50% for liquidity increase
    Ok(())
}

Position Locking​

The CLMM position NFT is permanently locked:

// Position lock via Raydium Lock
lock_position(position_nft)?;

Benefits:

  • Cannot be withdrawn
  • Guarantees permanent liquidity
  • Prevents rug pulls
  • Builds long-term trust

Buyback Benefits​

Continuous Buy Pressure​

  • Regular WSOL → PORB swaps
  • Creates demand for PORB
  • Supports token price

Deepening Liquidity​

  • More liquidity = lower slippage
  • Better trading experience
  • More stable prices

Self-Reinforcing Loop​

  • More players → more fees
  • More fees → more buybacks
  • More buybacks → more liquidity
  • More liquidity → better UX
  • Better UX → more players

Liquidity Operations​

Initial Liquidity (Genesis)​

open_position()
├── 250,000 PORB
├── 25 SOL
├── Price: 0.0001 SOL/PORB
└── Range: -30% to +∞

Ongoing Operations​

increase_liquidity()
├── Accumulated WSOL from fees
├── PORB from buybacks
└── Adds to existing position

Next Steps​