One shared inventory layer
Traditional integrations often create separate liquidity silos by venue, pair or execution path. C1 is designed differently. A seller contributes inventory once. That shared inventory can then be reached by aggregators, routers, intent systems, RFQ paths, direct integrations and other supported execution infrastructure. Different quote-asset representations do not create independent token depth. A TOKEN/WETH route and a TOKEN/USDC route can both draw from the same underlying TOKEN inventory.
One token pool serving multiple trading pairs
How a C1 Pool works
1
A seller contributes inventory
The seller deposits only the token being made available for sale. The contribution enters the pool’s contributor accounting and remains withdrawable until consumed by a fill.
2
The inventory joins one shared per-token pool
Multiple contributors can add inventory to the same C1 Pool without creating separate quote-specific or venue-specific liquidity silos.
3
Execution partners discover the same inventory
Integrators can resolve the per-token pool, inspect approved quote assets and query the Market’s quote surface.
4
C1 determines a protected oracle-derived rate
The pool uses an external market reference together with its pricing protections rather than its internal reserve ratio to determine the fill rate.
5
Buyer demand consumes available inventory
A router, filler, RFQ path, intent system or direct integrator can use C1 when the inventory is available and the route is appropriate for the requested trade.
6
The fill settles atomically
The buyer receives the purchased inventory and contributor accounting updates in the same on-chain transaction.
7
Seller proceeds accrue
The applicable seller fee is deducted from executed volume. Net proceeds accrue in the approved quote asset used for that fill and become claimable by the contributor whose inventory was consumed.
Inventory-bounded execution
A C1 quote reflects current state. It does not reserve inventory, so available depth can change between quote and settlement. For exact-input buys, the amount offered is an upper bound on what can be spent. If less C1 inventory is available than the order could otherwise consume, C1 can fill the available inventory and charge only for the tokens actually delivered. The unused input is not treated as a completed C1 trade. Exact-output buys remain all-or-nothing. If the exact token amount requested cannot be delivered, the order does not settle as a smaller output. Execution surfaces need to support the relevant settlement pattern for routed partial fills, but the underlying inventory rule remains the same: C1 cannot sell more token inventory than the pool currently holds.Atomic fills, progressive positions
A C1 deposit is not the same thing as submitting one immediate market order for the full position. Each successful buyer fill is atomic, but the seller’s overall position can complete progressively as external buyer demand arrives. Inventory that has not filled remains available for withdrawal. This is central to the FlowState model. It separates the decision to make inventory available from the requirement to execute the entire position immediately against whatever market depth exists at that moment. The trade-off is execution timing. C1 avoids forcing the full position through current market depth, but the seller gives up certainty that the whole position will fill immediately.Why C1 has no pool-induced price impact
An AMM derives price from its own reserve state. As a trade changes those reserves, execution moves along the bonding curve. C1 derives its execution rate from a protected external market reference rather than from the C1 pool balance. Fill size therefore does not move the unit rate through a C1 bonding curve. The claim is deliberately narrow: C1 fills have no C1 pool-induced price impact. External market prices can still move and the protected oracle-derived rate can change between blocks. A quote does not reserve inventory or guarantee later execution.No AMM-style impermanent loss
A C1 contributor does not provide a two-sided AMM position. The contributor deposits one inventory asset, that inventory is sold as buyer demand arrives and the contributor accrues settlement proceeds. Because C1 does not continuously rebalance the contributor between two pool reserves, the position does not incur impermanent loss through AMM reserve rebalancing. The market value of the deposited token can still rise or fall while inventory remains unfilled.Multiple approved quote assets
A single C1 Pool can support multiple approved ERC-20 quote assets. The quote asset is selected per trade and is named explicitly in the quote and execution call. The same token inventory therefore does not need to be fragmented across separate C1 pools for different settlement assets. A contributor may consequently accrue proceeds in more than one quote asset from the same pool. Accrued proceeds remain attributable and claimable by settlement asset.Contributor accounting
C1 tracks inventory by contributor and consumes seller-side inventory in FIFO order. When a fill uses a contributor’s inventory, that contributor accrues the corresponding net settlement proceeds. C1 does not issue a pooled LP share token and contributor balances do not rebase. Later deposits do not dilute an earlier contributor’s recorded entitlement. This accounting model allows multiple sellers to contribute to one shared token pool while preserving individual inventory, proceeds, claims and withdrawals.Optional quote-side liquidity
C1’s default liquidity model is one-directional: token inventory is made available to buyers rather than used to maintain a continuous two-sided market. Where configured, a C1 Pool can also support optional quote-side liquidity that can purchase the inventory token from an external seller through a separate sell-to-pool path. Integrators should not assume this capability is enabled for every pool. This quote-side pool capability is separate from FlowState’s protocol-level fee-funded buyback mechanism described in The Fee Model.C1 and AMM liquidity
Professional inventory
C1 is particularly relevant when a seller holds a position that is large relative to available market depth and does not need to cross the entire position immediately. Typical inventory sources include projects, foundations, funds, venture investors, founders, teams, advisors, market makers, professional traders and other concentrated holders.Next: The Fee Model
Why the seller-side fee model is designed around total execution outcome rather than AMM fee tiers alone.