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Documentation Index

Fetch the complete documentation index at: https://whitepaper.flowstate.exchange/llms.txt

Use this file to discover all available pages before exploring further.

For individual large holders (VC associates, early team, KOL recipients, OG community members, anyone holding more than the AMM can absorb cleanly), FlowState is the direct exit path. Deposit your tokens. Get oracle price minus 1%. The chart does not move. The trade settles automatically when a buyer routes through any major aggregator.

The trapped holder problem

If you hold more than roughly 5-10% of an AMM pool’s depth, the AMM cannot absorb your sell without significant cost. The math is brutal:
  • $100K position into a $1M AMM pool: 10-20% slippage. You lose $10K-$20K before fees.
  • $500K position into a $5M AMM pool: 15-30% slippage. The community sees a red candle and assumes the project is rugging.
  • $1M+ positions: Often unsellable without a 30-50% drawdown. The exit becomes a multi-week TWAP that exhausts the holder and still costs 5-10%.
The alternatives are not better. Bilateral OTC requires finding a counterparty, accepting opaque pricing, and trusting settlement. Centralised exchanges either do not list the token or require KYC processes that take weeks. Limit orders on AMMs do not exist for most tokens. The holder is structurally trapped.

How C1 Pools work for you

A C1 Pool exists for any token where someone has set one up and the token has a price oracle (Pyth or Chainlink). When you deposit your tokens into the pool, they become available for purchase at the live oracle market price. DEX aggregators (KyberSwap, OKX DEX, Odos, 1inch) route buy orders through your deposit automatically because the price is better than any AMM alternative.

Oracle-priced exit

You receive the live market price minus a 1% fee. No slippage. No price impact. The market does not know you sold.

No counterparty hunt

Buyers arrive through their normal aggregator workflow. You do not need to find them, contact them or negotiate with them.

Single-sided deposit

You only deposit the token you want to sell. No need to pair with ETH or USDC.

Withdraw anytime before fill

If you change your mind, you can withdraw the tokens (any portion that has not been sold yet) without paying any fee.

How to use a C1 Pool

1

Check if a pool exists for your token

Search the FlowState registry or ask the project. If a pool does not exist yet, contact partnerships@flowstate.exchange and we will coordinate deployment. Typical lead time is one to two weeks.
2

Approve and deposit

Approve the C1 Pool to spend your tokens, then call deposit. Single transaction in most wallets. Your tokens are now staged for sale at oracle price.
3

Wait for routed fills

Aggregator buyers route through the pool automatically when it offers the best execution price. For a thin-liquidity token, this happens on every meaningful buy.
4

Receive settlement proceeds

Each fill sends USDC or ETH to your wallet at oracle price minus 1%. You can monitor fills via the FlowState dashboard or directly through your wallet.
5

Withdraw anything unsold

If you want to stop selling, call withdraw on any remaining deposit balance. No fee.

What this looks like in numbers

A typical $500K position holder comparing exit paths:
Exit methodWhat you receiveWhat it costs youChart impact
AMM dump in one trade~$375K$125K to slippage-20% red candle
AMM TWAP over 4 weeks~$450K$50K to slippage and execution riskSustained downtrend
Bilateral OTC$475K-$485K3-5% desk spreadNone
C1 Pool$495K$5K (1% fee)None
The C1 Pool delivers the best net outcome and the cleanest exit for the project. Long-term holders who would otherwise sell on the chart panic now see no sell signal. The holder gets oracle price. Everyone wins except the AMM.

What you do not need to worry about

  • Counterparty risk. Settlement is on-chain and atomic. Either both legs of the trade complete or neither does.
  • Custody risk. There is no custodial intermediary. Your tokens stay in the audited smart contract until they are sold or you withdraw them.
  • Price discovery. The oracle handles pricing. You do not need to negotiate.
  • Market timing. Each fill happens at the live oracle price at the moment of execution. You are not locked to a stale price.
  • Tax events. Each fill is a discrete sale at a discrete price. Holders should consult their own tax advisor on reporting.

When to use a C1 Pool

The economics favour C1 over the AMM whenever your position size exceeds roughly 5% of the AMM pool depth. Below that, AMM execution is fine. Above that, C1 is mathematically superior on every dimension except speed (a single AMM dump finishes instantly, while C1 fills as buyers arrive). For positions over $100K on tokens below $50M market cap, C1 is almost always the right path.

Get started

To check if a C1 Pool exists for your token, or to coordinate deployment of one, contact partnerships@flowstate.exchange.

See also: For Projects

If you are advising or working with a project, here is how the project can coordinate exit infrastructure for all its holders at once.