BIOPSY-27🧪 Enhanced Liquidity for top Pump Science Compounds

TL;DR

Establishing a collaborative liquidity provision mechanism between PS, BIO Protocol, and top-performing compound teams (starting with $RAP) to deepen liquidity pools, provide BIO holders exposure to high-potential assets, and create positive-sum value through shared AMM fees and token sinks.

Team

• PS Team: Benjels, Jillian, Crow
• BIO Protocol Team: Paul, Clepp, Artem
• $RAP Compound Team: Killu, Kura

TL;DR

We propose a joint liquidity provision playbook for promising compounds launching on pump science (PS), starting with RAP. PS will purchase 25 SOL worth of the compound's token (e.g., RAP), the compound team will contribute tokens, and BIO Protocol will add BIO tokens (50 SOL equivalent for RAP). Liquidity will be pooled in a shared AMM, with fees split pro rata (e.g., 25% RAP team, 25% PS, 50% BIO for the initial case). Operations will use a 3/6 multisig (2 members each from compound team, PS, and BIO). This increases LP depth without raising funding burdens, gives BIO holders access to top assets, and creates token sinks for all involved tokens.

Summary

PS has optimized its bonding curve to lower market caps, enabling more research funding with reduced burdens. However, this results in thinner liquidity pools for launched compounds, limiting whale participation due to high slippage. To address this, we're proposing a collaborative model to boost liquidity for proven compounds (e.g., King of the Pill winners) while providing BIO holders direct exposure to these assets.

For any compound that wins King of the Pill in a given animal, we'll introduce them to the BIO team and execute this playbook:

• PS buys 25 SOL of the compound's token (BIO can optionally match or add based on conviction).
• The compound team, PS, and BIO contribute to a shared liquidity pool: compound team and PS with the compound's token; BIO with BIO tokens.
• Fees from the AMM pool are split pro rata based on contributions.
• All operations run on joint multisigs for transparency and shared control (2 from each team, 3/6 threshold).

This model is already in discussion with the Bio team, and we're piloting it with RAP:

• RAP team buys 25 SOL of RAP and provides RAP tokens.
• PS buys 25 SOL of RAP.
• BIO provides 50 SOL equivalent in BIO tokens.
• Fee split: pro rata based on liquidity provided

This creates a win-win: deeper LPs for trading, token sinks to reduce supply, revenue from fees, and BIO community access to PS's top performers.

Problem

PS's low bonding curve market caps minimize funding requirements, allowing more scientific research to reach fruition. However, this leads to shallower liquidity pools for launched compounds, causing significant slippage for larger trades. Whales and institutional players are deterred, limiting the tokens' growth potential and market adoption. Without increasing funding burdens, we need a way to enhance LP depth for compounds that demonstrate strong scientific utility (e.g., via King of the Pill wins). Additionally, BIO holders seek greater access to high-performing assets from platforms like PS to diversify and capture upside in longevity and biotech innovations.

Solution

Implement a standardized, collaborative liquidity provision process for top compounds:

1. Selection: Target compounds that win King of the Pill for any animal category, ensuring scientific validation.
2. Introduction and Buy-In: PS introduces the team to BIO and purchases 25 SOL of the token to seed liquidity (BIO can co-invest if desired).
3. Liquidity Contribution:
   • Compound team: Provides their native tokens.
   • PS: Contributes purchased tokens.
   • BIO Protocol: Adds BIO tokens (scaled to match contributions, e.g., 50 SOL for RAP).
4. Pool Setup: Create a shared AMM pool with contributions, splitting fees pro rata (e.g., based on value contributed).
5. Governance: Use a 3/6 multisig with 2 representatives each from the compound team, PS, and BIO for withdrawals, adjustments, or other actions.

For the RAP pilot:

• RAP team contributes RAP tokens.
• PS buys and contributes 25 SOL of RAP.
• BIO contributes 50 SOL in BIO.
• Pro rata fee split: 25/25/50.

Opportunity

This mechanism unlocks multiple benefits in the DeSci ecosystem:

• Deeper Liquidity: Enables whales to enter positions with minimal slippage, positioning top tokens for significant price appreciation.
• Token Sinks: Locking tokens in LPs reduces circulating supply for RAP, other PS-related tokens, and BIO, potentially increasing scarcity.
• Revenue Streams: All parties earn fees proportional to contributions, creating ongoing yield.
• BIO Holder Exposure: Provides direct access to PS's best-performing compounds, enhancing portfolio diversification in cutting-edge research.
• Ecosystem Growth: Strengthens the PS launchpad by making it more attractive for projects and traders, while fostering cross-protocol collaboration.
• Scalability: Once proven with RAP, this can scale to future King of the Pill winners, building a pipeline of high-utility assets.

DeSci is rapidly expanding, with increasing interest from retail and institutional players. By deepening LPs for validated compounds, we can capture more attention and drive adoption.

Budget

No direct USD funding request—BIO's contribution is in-kind via BIO tokens (e.g., 50 SOL equivalent for RAP). All liquidity remains productive in the AMM, generating fees. Future instances can scale contributions based on community votes and compound performance.

IP & Open Science Roadmap

• Tokenized Assets: Builds on existing tokenomics of PS compounds and BIO, with shared pools enhancing utility.
• Transparency: Multisig governance ensures open, verifiable operations. All pool data and fee distributions will be on-chain.
• Commercialization: Deeper LPs accelerate compound adoption, potentially leading to partnerships, listings, or acquisitions that benefit all holders.

Next Steps

1. Community vote to approve the playbook and initial RAP implementation.
2. Coordinate with RAP team, PS, and BIO representatives to set up the multisig and pool.
3. Launch the shared AMM pool and monitor performance.
4. Report fee distributions and LP metrics to the BIO community quarterly.
5. Expand to subsequent King of the Pill winners based on success.