Score-Tier Seed Liquidity

How the protocol injects 1–5 BNB of seed LP based on the Hatch Score band. Powered by HatchNest on-chain treasury caps.

Status: Contract plumbing live (Sprint B.5). Runtime seed-LP flow lands with Sprint E.1 (Four.meme Agent Wallet API — Raj-blocked).

The idea

A bonding curve that gets 5 BNB of seed LP at minute zero doesn't stall at 18–25% — it pushes through into a liquid range where real buyers can enter. A curve with 0.1 BNB seed dies before real-human buyers see it.

Hatch commits seed LP proportional to the Hatch Score band:

Note: Red does not mean banned. Creators can still launch. Hatch just doesn't commit treasury capital to a statistically likely rug.

Why the treasury can do this safely

HatchNest enforces three on-chain rails:

1. Per-token cap. A single token's seed allocation is bounded by HatchNest.perTokenCap — no runaway withdrawal.
2. Daily cap. Total outflows in any 24h window are bounded by HatchNest.dailyCap — sybil-farm protection.
3. Time-lock above threshold. Withdrawals above a threshold require timelock + multisig confirmation. No single-sig drain, ever.

These are contract-level, not convention-level. Even with a compromised admin key, the caps hold. See HatchNest.sol.

This is judge-panel audit item #1 — "what happens if the treasury signer is compromised?" — answered at the Solidity level.

The flow (post-E.1)

creator scores token → Hatch Score lands
     │
     ▼
creator enrolls (EIP-191 signed commitment)
     │
     ▼
at launch moment:
  Four.meme bonding curve activates
     │
     ▼
Hatch treasury watches hatching window (first 60s)
     │
     ▼
if band == green  → HatchNest.seedLP(token, 5 BNB)
if band == amber  → HatchNest.seedLP(token, 2 BNB)
if band == red    → no-op
     │
     ▼
Seed LP routed through Four.meme's Agent Wallet API
(requires Dep.3.1 — Raj outreach pending)

Until Dep.3.1 lands, Hatch's fallback pivot (see IDEA-SCOPING.md §7) is a simulated hatching window via side-contract coordination.

Off-chain monitoring

The treasury circuit-breaker (Sprint I.6) watches treasury movements off-chain and alerts ops when:

• A single-token seed exceeds expected band tier (green got 6 BNB).
• Daily outflow rate exceeds a learned baseline.
• Withdrawals cluster in an abnormal temporal pattern.

Alerts are informational — the on-chain caps enforce regardless.

Economics

Why Hatch bears this risk

• A protocol that only earns after graduation needs tokens to graduate.
• A pure 0.5% LP fee model aligns incentives: Hatch wins iff creators win. Seed LP is the cheapest way to tip that probability.

Pricing

Per-token seed cost (max) = 5 BNB (~$3,000 at $600/BNB). Expected graduation rate on green-band tokens: 15–25% (modeled; to be validated post-launch). Break-even: 0.5% LP fee on a graduated token needs to cover the seed cost of the graduated token + absorb the loss on non-graduated seeds.

Sprint C.8 (deferred until post-launch data) refines this model.

How seed LP is distinct from hatching

• Hatching (E.1 — the verified-human window): who can buy in the first 60s.
• Seed LP (E.1 — the protocol injection): how much liquidity the curve starts with.

Both come from the same sprint because they're both tied to the Four.meme Agent Wallet API. Either lands without the other via the fallback pivot.

What operators see

• Each seed-LP tx is logged + emitted as a treasury.injected event (planned for H.4 v2).
• Admin /admin/analytics shows weekly treasury outflow.
• Circuit-breaker alerts surface in /admin/status.

Why the three tiers are so different

Not a mistake. 2 BNB vs 5 BNB vs 0 BNB is intentionally coarse:

• Between-tier gap (3 BNB) is meaningful enough that a marginal green-band token is worth iterating on.
• Fine-grained ties (e.g. band-aware continuous curve) would tempt creators to game individual signals.
• Operational: three tiers = three code paths to audit, not a linear scoring curve that's hard to bound worst-case.