SkyLiquid

A coin launches with all of its supply in a pool and none of its liquidity withdrawable. Every trade on it pays a fee. That fee does not go to a team wallet — it becomes margin on a perp position that the coin's own contract owns and trades on Hyperliquid. When the position is closed in profit, most of that profit stays on as margin for the next position, and the rest buys the coin back and burns it.

The whole loop runs in smart contracts. There is no wallet holding your coin's money, because there is no wallet.

01The coin

SUPPLY AND AUTHORITIES

A fixed 1,000,000,000 supply ERC-20 on HyperEVM, deployed fresh per launch. No mint function exists. No owner, no admin key, no upgrade path, no pause, no blacklist, no transfer tax, no hooks. The only supply-side function is burn, callable by any holder on their own balance. Supply moves in exactly one direction.

LAUNCH PRICE

Every coin opens at the same place: a $5,500 fully diluted valuation. The launch price is not a number someone typed in — it is computed at deploy time from Hyperliquid's own HYPE/USD oracle, read on-chain through a precompile, so the dollar target holds whatever HYPE is worth in that block.

02Liquidity

SINGLE-SIDED, NO CURVE, NO MIGRATION

There is no bonding curve and no graduation event. At launch, 100% of supply is placed into a HyperSwap V3 pool at the 1% fee tier, as a single-sided range that starts at the launch price and runs to the top tick. The pool holds only tokens. Buyers bring the HYPE.

That means the creator supplies no capital. There is no raise, no presale, no team allocation, no seed round to be dumped on you later. The coin's market exists from the first block, priced in HYPE, tradeable through any aggregator that routes HyperEVM.

THE LIQUIDITY IS NOT ANYONE'S TO TAKE

The LP position is an NFT, and it is owned by the coin's vault contract. The vault has no function that removes liquidity. Not a timelock that eventually opens, not an admin path, not a multisig. decreaseLiquidity is not implemented and cannot be added — the contract is not upgradeable. The only thing the vault can do with that position is collect fees from it.

A rug in the ordinary sense — deployer pulls the pool and leaves — is not a thing that can happen, and not because anyone promised. Because the code to do it was never written.

TOKEN ORDERING

Each token's address is mined via CREATE2 so that it sorts below wrapped HYPE. Every SkyLiquid coin is therefore token0 in its pool and prices uniformly as HYPE-per-token, and the single-sided range is active from the block it is minted.

03The vault: one contract per coin

This is the part that is different, so it is worth being precise.

THE VAULT IS THE HYPERLIQUID ACCOUNT

Every coin gets its own vault — a minimal-proxy clone deployed at launch. That vault owns the LP position, holds the coin's margin, and is itself the Hyperliquid account that holds the perp position. HyperEVM and HyperCore share one address space and one consensus, so a contract at 0x562C… on the EVM side is the trader at 0x562C… on the order book. Not a wallet controlled by a contract. The contract.

NOBODY HOLDS A KEY, BECAUSE THERE IS NO KEY

Comparable products give each coin a sub-wallet whose private key is derived from a master secret living inside the operator's keeper process. That design stops the creator from draining a position. It does not stop the operator: whoever holds the master secret can sign anything, for every coin, forever.

SkyLiquid has no such secret. A contract account has no private key to hold, leak, subpoena, or rotate. The vault acts only by executing its own deployed bytecode, and that bytecode contains a fixed set of operations:

• collect fees from its own LP position
• move its own HYPE to its own Hyperliquid balance
• place orders on the market the creator chose
• split realized profit by ratios it reads from the protocol config
• burn tokens

No caller can tell a vault where to send money. There is no transfer(to, amount), no sweep, no rescue, no owner withdrawal. Money can leave a vault along exactly three paths — the protocol treasury, the creator's profit share, and the burn address — and the proportions are enforced by the contract, not by a bot's discretion or a database constraint. The single address a caller can change is the creator reassigning their own payout wallet to another address; it moves nobody else's share and touches no balance.

WHAT THE OPERATOR CAN ACTUALLY DO

The keeper is an ordinary address that pays gas to call functions anyone can call. It cannot choose amounts or destinations; it chooses timing. If the operator disappears tomorrow, any person with a HyperEVM wallet can run the same loop on any coin, because every step of it is public and permissionless. Nothing is gated on being us.

04Market universe

The menu is Hyperliquid's, not ours. At launch the creator picks any perp Hyperliquid lists, a direction, and a leverage. The catalogue is read live from the venue, so it tracks listings and delistings automatically.

As of this writing that is 178 live markets, with each market's leverage ceiling taken from Hyperliquid's own table:

LEVERAGE

There is no protocol-imposed cap. A creator can select anything from 1× up to the market's own maximum, and the contract validates that choice on-chain against Hyperliquid's asset table at both request and launch. We do not think a launchpad should decide how much conviction is allowed. We do think the number should be honest, so the interface shows effective leverage and the live liquidation price rather than a marketing multiplier.

DIRECTION

Long or short, chosen per position. A coin can be a bet that something goes down.

05Execution

WHERE TRADES HAPPEN

On Hyperliquid, natively. No bridge, no external routing layer, no third-party execution venue, no separate settlement chain. The vault emits its orders through CoreWriter (0x3333…3333), the system contract that hands actions from HyperEVM to HyperCore, and they execute against the same order book everyone else trades on.

Concretely, a vault's order is a HyperEVM transaction. It is in a block. You can look at it.

HOW THE VAULT SEES THE WORLD

It reads HyperCore directly through the read precompiles at 0x800–0x810: its own position, its own margin and account value, spot balances, mark and oracle prices, the order book's best bid and offer, and the L1 block height. These values are guaranteed to match HyperCore state as of the block being built, so the contract's view of its own position is consensus truth rather than an oracle someone maintains.

This is what makes the state machine safe to run in public. Each step verifies the previous one against Hyperliquid before proceeding — because CoreWriter actions are asynchronous and fail silently, the contract never assumes an order filled. It checks.

ORDER PRICING

All orders are immediate-or-cancel, priced 1% through the book, and rounded to Hyperliquid's tick and lot rules on chain. Opens are sized at 97% of account value times leverage — the venue checks margin at the limit price rather than the mark, and the buffer is what keeps an order at the market's maximum leverage from being rejected.

COLLATERAL

Fees arrive as HYPE and margin is posted in USDC, so each vault sells its own HYPE for USDC on Hyperliquid's spot book (pair 10107) and transfers the proceeds to its perp account. Both legs are the vault's own orders on its own account.

06Fee split

The pool charges 1% on every trade. Fees accrue to the vault's LP position in both assets, and a harvest call — which anyone may make — splits them by side:

WHY THE COIN SIDE IS BURNED, NOT SOLD

The token side of a V3 fee accrues in the coin itself. Selling it to raise margin would mean the protocol systematically dumping the asset it is supposed to be backing. So it is burned instead. Sell pressure on a SkyLiquid coin permanently reduces its supply.

THE MARGIN PATH

The 80% does not sit in a treasury waiting for a human. It walks to the position, one permissionless call per hop, each confirmed against HyperCore before the next runs:

LP fees ──harvest──▶ vault's HYPE ──bridge──▶ vault's Hyperliquid spot balance
        ──sell (IOC, pair 10107)──▶ USDC ──transfer──▶ perp margin

Every dollar that lands as margin increments the vault's principal — its cost basis. Profit is always measured as account value − principal, so fees added while a position is open can never be mistaken for trading profit or paid out as one.

07The keeper

A keeper process ticks continuously and, for each coin, calls whichever step the contract will currently accept: harvest, bridge, sell, fund, open, confirm, settle, distribute, retry.

Three things are true of it:

• It holds nothing. The keeper address pays gas. It never receives protocol funds, creator funds, or coin funds.
• It has no discretion. Amounts, destinations, ratios, sizes, and prices are computed inside the contract from on-chain state. The keeper supplies a timestamp, effectively.
• It is not privileged. Every step is external and unguarded except by the state machine itself. A stuck coin can be advanced by anyone; running a competing keeper is a feature, not an attack.

The one thing that requires a key is leverage, because Hyperliquid's leverage setting is not exposed through CoreWriter. Each vault therefore registers its own API wallet — a Hyperliquid agent, derived per vault, with trading-only authority. Agents can set leverage and place orders; they cannot withdraw or transfer funds, which is enforced by Hyperliquid, not by us. One agent is bound to one vault, so a compromised agent key reaches exactly one coin's exposure and zero coins' balances.

08Position lifecycle

IDLE ──open──▶ OPENING ──confirm──▶ OPEN ──close(next)──▶ CLOSING ──confirm──▶ SETTLING ──distribute──▶ IDLE
  ▲                │ no fill in 30 L1 blocks                        │ loss, or profit below the floor      │
  └────────────────┴────────────────────────────────────────────────┴──────────────────────────────────────┘

OPEN

Once the coin's perp account holds $12, the keeper sets the chosen leverage and opens the position at the creator's chosen market, side, and leverage. Below that threshold nothing opens — Hyperliquid's minimum order is $10, and a position opened at the floor is a position one tick from being unmanageable.

TOP UP

Every subsequent harvest walks the same path and adds collateral to the live position at the same leverage setting. Adding margin without adding size means effective leverage falls and the liquidation price moves further away: a coin that keeps trading gets safer, not more exposed.

CLOSE — AND THE RULE THAT KEEPS A COIN ALIVE

Only the creator can close, and the close transaction must name the next position. Market, side, and leverage for the next trade are chosen in the same call that ends the current one.

This is deliberate. A coin whose backing can be switched off is a coin with an exit hatch; a coin that must always declare what it does next cannot be quietly abandoned. The queued configuration is what automatically reopens once settlement finishes and margin clears the threshold. The coin keeps trading for as long as it keeps earning fees.

WHAT HAPPENS AT THE CLOSE

The vault compares account value to principal and takes one of three paths:

• Profit: 60% of it never leaves the venue. It stays in the perp account beside the principal, and the cost basis rises by that amount so it can never be counted as profit again. The other 40% — and only that — is withdrawn and split (section 9). The next position opens on principal plus reinvested profit, so a coin compounds rather than restarting from zero.
• Profit whose withdrawn 40% is below the floor ($12): nothing is withdrawn or reinvested and the cost basis is left untouched, so the whole gain is carried and split at a later close. In practice a profit under $30 is carried. A sub-$10 settlement cannot be executed on Hyperliquid at all; pretending otherwise would strand the coin mid-cycle.
• Loss: nothing is split, the cost basis resets to whatever equity survived, and the next position opens on it. There is no bailout and no top-up from the protocol. The coin rebuilds margin out of its own fees.

LIQUIDATION

It is a real outcome, not one we design around. A liquidated coin loses its margin and its profit-burn stream, and then rebuilds from fees like any other coin. Fee-funded burns on the coin side continue regardless, because they never depended on the position.

09Profit split

Realized profit — not fees — is divided three ways, on chain, by the contract:

The protocol takes no share of profit. Its revenue is the 20% of HYPE-side fees (section 6).

Two properties worth naming. The creator's only revenue is profit — there is no allocation, no launch fee cut, no stream from trading volume. A creator who picks badly earns nothing. And nine tenths of every win stays with the coin: most of it compounds the position that backs it, and the rest becomes burned supply rather than a distribution.

The shares live in the factory config and every vault reads its own factory's. Coins launched by factories before v1.3 have no reinvest share and split the whole profit — the genesis coin SKYGEN 50% buyback-and-burn / 35% creator / 15% protocol, and SKYALPHA 65 / 20 / 15. Each coin's page shows the split its own contract enforces.

10What you can verify

Every claim in this document resolves to a mainnet transaction or a contract read.

• The liquidity is locked — read the LP position's owner and look for the function that would remove it. There isn't one.
• The position is real — each coin's vault address is a Hyperliquid account. Query it on Hyperliquid's own API or read the position precompile. Size, entry, margin, and liquidation price are public.
• The orders are the contract's — every open, top-up, and close is a HyperEVM transaction from the vault to CoreWriter, with the encoded order in its calldata.
• The splits are exact — Harvested, ProfitReinvested and Distributed events carry the amounts. Check the ratios yourself.
• The burns happened — transfers to the zero address, and a falling totalSupply.
• Nothing else moved — a vault's inflows are LP fee collections and Hyperliquid credits; its outflows are the treasury, the creator, and burns. There is no fourth destination to find.

Live as of writing, across two coins: 14.78M tokens burned, 1.21 HYPE of fees routed to margin, 0.30 HYPE to the treasury, and one completed profit cycle that paid 0.126 HYPE to a creator and burned 2.45M supply from a 0.18 HYPE buyback — three positions opened, two closed, one of them at a loss that reset cleanly and reopened.

11Trust surface

Decentralization claims are worth exactly as much as the parts you can check, so here is the honest boundary.

What no one can do, including us: withdraw a coin's liquidity, move a vault's margin to any address, change a split after the fact, mint supply, block a transfer, close or open a position on a coin they do not create, or stop someone else from advancing a coin's state machine.

What the protocol owner can do today: change forward-looking configuration — the split ratios, the thresholds, the treasury address, the order-slippage and buyback-impact bounds — and pause new launches. The contract bounds these values (splits cannot exceed 100%, slippage is capped), and changes apply to future flows, not to funds already in a vault. This is currently a single key. It should be a timelocked multisig before this is treated as infrastructure rather than an experiment, and that is the next change on the list, not a someday item.

What a compromised agent key could do: trade one coin's account badly. It cannot withdraw, cannot transfer, and cannot touch a second coin.

What has not happened yet: a third-party audit. The contracts are young, they have been exercised end to end with real money on mainnet, and they have already had two bugs found and fixed that way — both in the settlement path, both surfaced by running the loop live rather than by reading it. Treat the code as unaudited, because it is.

12Risks

Leverage cuts both ways, and these are leveraged positions chosen by strangers. A position on the wrong side of a fast move is liquidated by the venue; the coin loses its margin and its profit-burn stream until fees rebuild it.

A coin with no trading volume earns no fees, never reaches the threshold, and sits idle. The backing is funded by activity; it is not a subsidy.

The keeper, RPC providers, HyperSwap, and Hyperliquid itself are live dependencies, and an outage in any of them pauses harvests, top-ups, or settlement. Pausing is the failure mode we designed for — funds stay in the vault and the loop resumes — but it is still downtime.

Coins launched here are not securities, not a fund, not managed on your behalf, and not a claim on anything. A SkyLiquid coin is a token whose contract happens to trade a perp. Pick a market, a side, a leverage, and a coin you actually believe in.

13Parameters

Contracts (mainnet)