Liquidity & Graduation
When a token graduates, everything it raised becomes Uniswap V4 liquidity - locked permanently. Nobody can ever pull it. Only the trading fees it earns are collected, and those are shared between the creator and the protocol.
The pool exists from day one
A Frontier token's Uniswap pool isn't thrown together at graduation - it's created the moment the token is deployed, before a single trade happens. It just sits dormant: swapping on it is blocked until the token graduates, so the bonding curve is the only place to trade.
This matters because it removes the scariest moment of a typical launch - the scramble to set up a pool after the raise. On Frontier there's nothing to set up and no one to trust. The pool, its price, and its rules are fixed before anyone has bought anything.
What graduation deposits
At graduation, the token's raise turns into liquidity in one atomic step:
- ~4.25 ETH (the raise minus the creator's 5% fee) goes in on one side.
- 300 million tokens (the reserve held back from the curve) go in on the other.
The liquidity is deposited in two halves - one positioned just below the graduation price to absorb sells, one just above it to absorb buys. That means the token can trade in both directions from the very first block, with no gap and no one needing to "add liquidity" first.
Locked means locked
The ownership certificates for that liquidity are sent to a protocol contract that has no ability to withdraw it - by design, the function doesn't exist. Not the creator, not the protocol team, not anyone can pull the liquidity back out.
The only thing that can ever be taken from the locked positions is the trading fees they earn - the POL LP fees, as the app labels them. They're collected periodically, and each collection is split:
- 75% to the token's creator (or wherever the creator routed their fees at launch).
- 25% to the protocol.
So the locked liquidity isn't dead weight - it's a permanent income stream for the creator. The more the token trades, the more it pays.
What a freshly graduated token looks like
At graduation (dollar figures at ETH ≈ $2,000):
| Market cap | ~$43K |
| Liquidity backing it | ~$21K |
| ETH raised on the curve | |
| Creator's graduation fee | ~$450 |
The liquidity is roughly half the market cap - unusually deep for a fresh launch. That's what lets a just-graduated token absorb real buying and selling without the price falling apart.
After graduation
Every swap on the pool pays the dynamic fee - 0.30% in calm markets, up to 1.20% in volatile ones. Most of it (70%) accrues to the locked liquidity and flows onward to the creator and protocol as described above; the rest is distributed on every swap between the protocol, the creator, and the token's Staking Vault if it has one. The complete breakdown is on Fees & Revenue.
The whole thing runs without anyone pressing a button: the pool exists, the liquidity is locked, the fees accrue, and the collections happen on their own.