▓LIQSCRIBE
PROTOCOL DOCUMENT · v1.0

WHITEPAPER

LIQSCRIBE PROTOCOL · LIQUID INSCRIPTIONS ON BASE

CONTENTS
  1. 1. Abstract
  2. 2. The Inscription Problem
  3. 3. Protocol Design
  4. 4. The Three Phases
  5. 5. The Inscription NFT
  6. 6. The SCRIBE Token
  7. 7. Economics
  8. 8. Liquidity Mechanics
  9. 9. Oracle & Safety
  10. 10. How to Participate
  11. 11. Risk Disclosure
  12. 12. Glossary

1. Abstract

LiqScribe is a two-phase liquid inscription protocol deployed on Base. Each inscription is a non-fungible token (ERC-721) that, upon protocol activation, becomes a pro-rata claim on a single, locked Uniswap V3 concentrated liquidity position. Holders may collect proportional swap fees indefinitely, or burn their inscription to redeem the underlying ETH and SCRIBE tokens.

The protocol is fully immutable post-deployment: no owner, no pause, no upgrade path. All operational logic — pricing curve, fee splits, supply cap, and redemption math — is encoded at construction and cannot be modified.

2. The Inscription Problem

Inscription standards (BRC-20, Ordinals, EVM ports such as Uniscribe) record token issuance events on-chain but provide no mechanism for organic price discovery or liquidity formation. After mint, the inscription ceases to interact with the chain. Secondary markets, when they emerge, are entirely speculative and unsupported by any protocol-level value backing.

The result is a predictable lifecycle: high mint enthusiasm, fragmented secondary liquidity across off-chain marketplaces, and eventual price collapse as holders exit into thin order books.

3. Protocol Design

LiqScribe addresses this by separating inscription issuance from liquidity formation. During Phase 1, users mint inscriptions via a bonding curve. ETH paid is accumulated within the protocol contract and tracked. During the activation event, this accumulated capital plus newly-minted SCRIBE tokens is deployed as a single concentrated liquidity position on Uniswap V3. Each inscription is then a pro-rata fractional claim on that position.

The protocol relies on three smart contracts:

  • ScribeToken — Standard ERC-20.
  • InscriptionNFT — ERC-721 + ERC-2981. Each token represents one minted inscription.
  • MintRouter — Coordinates issuance, pool creation, activation, and redemption.

4. The Three Phases

Phase 1 — Accumulation

From contract deployment, the public mint function is permanently open until the activation event. Each mint operation:

  1. Accepts ETH at the current bonding curve price P(n) = 0.0005 + 0.0045 × n / 21000 ETH, where n is the current mint index.
  2. Mints one inscription NFT to the caller's address.
  3. Allocates a portion of the paid ETH to the future liquidity reserve.

The SCRIBE token does not yet exist in tradeable form during this phase. Inscriptions held during Phase 1 represent claims on a future liquidity event.

Phase 2 — Activation

The activation event is a single, atomic operation that:

  1. Mints the full SCRIBE supply: totalInscriptions × 1000 tokens.
  2. Deploys accumulated ETH and the freshly minted SCRIBE as a concentrated liquidity position on Uniswap V3 (1% fee tier).
  3. Locks the resulting LP NFT within the MintRouter contract — it cannot be transferred or withdrawn as a whole.
  4. Permanently closes the public mint function.

Phase 3 — Trading and Redemption

SCRIBE becomes tradeable on Uniswap V3 and via any compatible aggregator (GMGN, DexScreener, Photon, etc.). Inscription holders may, at any time:

  • Call claimFees() to collect proportional swap fees accrued to the locked LP.
  • Call burnAndExit() to burn the inscription and receive the proportional underlying ETH and SCRIBE.
  • Transfer the inscription NFT to another address (subject to ERC-2981 royalty).

5. The Inscription NFT

Each inscription is a non-fungible ERC-721 token with on-chain SVG metadata. The visual is procedurally generated from the inscription ID and includes a deterministic rarity tier:

  • Common (80%)
  • Uncommon (15%)
  • Rare (4%)
  • Legendary (1%)

Rarity assignment is deterministic from the inscription ID via on-chain hashing. The standard supports ERC-2981 royalty for secondary market transfers.

6. The SCRIBE Token

SCRIBE is a standard ERC-20 token with no transfer hooks, no transfer tax, and no blacklist mechanism. It is minted programmatically at the activation event in an amount equal to totalInscriptions × 1000 × 1018. After activation, SCRIBE circulates freely between holders and the V3 liquidity pool.

Public burning is permitted via burn(amount). The token has no governance, no fee receiver, and no protocol-level interaction beyond the V3 liquidity pool.

7. Economics

Maximum public mints21,000
SCRIBE per inscription1,000
Total SCRIBE supply at activation21,000,000
Public mint price range0.0005 → 0.005 ETH
Bonding curve shapeLinear
V3 pool fee tier1% (10,000)
ERC-2981 royalty1%
Burn-and-exit fee3% of redeemed value
Liquidity range at activationTWAP ± ~20% (±2000 ticks)
Anti-sniper windowFirst 100 public mints

8. Liquidity Mechanics

At activation, the protocol mints SCRIBE supply and pairs it with accumulated ETH to create one concentrated liquidity position centered on the current TWAP-derived tick. The position spans approximately ±20% of the activation price.

All swap fees collected by this position accrue to the MintRouter contract and are distributed pro-rata to active inscription holders. Distribution uses a standard "fee per share" accumulator pattern:

accETHPerInscription += (collectedETH × 1018) / activeInscriptions

On claimFees(id), an inscription receives:

userShare = (accETHPerInscription − lastClaimed[id]) / 1018

On burnAndExit(id), the inscription receives its proportional share of the LP principal plus any unclaimed fees. A 3% exit fee is deducted before transfer. The Big LP itself is held by the MintRouter and is never transferred out, only fractionally drained via burn-and-exit calls.

9. Oracle & Safety

Activation and burn-and-exit operations check the V3 pool's time-weighted average price (TWAP) over a 600-second window. If the current spot price deviates from the TWAP by more than 500 ticks, the operation reverts. This guards against single-block price manipulation by sandwich attackers.

The pool's observation cardinality is set to 500, providing approximately 1000 seconds of price history on Base's 2-second block cadence — comfortably above the 600s TWAP window.

Users invoking mint, burnAndExit, and other state-changing functions can additionally provide:

  • deadline — Transaction expiry timestamp.
  • expectedTwapTick / maxTickDeviation — Slippage bounds against TWAP movement.
  • minEth / minScribe — Minimum net output (after fees).

10. How to Participate

  1. Bridge ETH to Base (via bridge.base.org, Across, Stargate, or similar).
  2. Connect a Base-compatible wallet (MetaMask, Rabby, OKX Wallet, etc.).
  3. Visit the mint page and execute the mint transaction at the current bonding curve price.
  4. Hold the inscription NFT. Trade on OpenSea, Blur, or Magic Eden if desired before activation.
  5. After activation: SCRIBE is tradeable on Uniswap V3 (and aggregators). Inscription holders may claim fees or burn-and-exit.

11. Risk Disclosure

  • Activation timing is discretionary. The activation event must be manually triggered. There is no automatic activation by time or completion threshold.
  • Concentrated liquidity range. The Big LP is placed at TWAP ± ~20%. If SCRIBE price moves outside this range, fees accrue only while in range. Burn-and-exit redemptions return the LP composition at the time of burn, which may be lopsided (mostly ETH or mostly SCRIBE).
  • Bonding curve geometry. Early mints pay less; late mints pay more. All inscriptions, regardless of mint index, hold equal pro-rata claim on the activation LP.
  • No upgrade path. The contract is immutable. Any unintended behavior or implementation bug persists for the lifetime of the protocol.
  • No utility beyond LP claim. SCRIBE is a meme token. It has no governance, no fee accrual to a treasury, and no other protocol-level utility.

12. Glossary

Activation
The atomic operation that mints the full SCRIBE supply, deploys the Big LP, and closes the public mint.
Big LP
The single concentrated Uniswap V3 liquidity position created at activation and held permanently by the MintRouter contract.
Bonding curve
The linear function P(n) = 0.0005 + 0.0045 × n / 21000 that determines the public mint price as a function of mints completed.
Burn-and-exit
The function by which an inscription holder burns their NFT to receive a proportional share of the Big LP's underlying ETH and SCRIBE, less a 3% exit fee.
Claim fees
The function by which an inscription holder collects their proportional share of swap fees accrued to the Big LP since their last claim.
Inscription
An ERC-721 NFT issued by the InscriptionNFT contract. Each inscription represents a single mint event and a pro-rata claim on the future Big LP.
SCRIBE
The ERC-20 token paired with ETH in the V3 LP. Minted at activation in proportion to total inscriptions.
TWAP
Time-weighted average price. The V3 pool maintains an on-chain TWAP oracle used for slippage protection.