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lp

FlowX V2

Rejected
Max sleeve
Reviewed
2026-08-16 · v1
Next review
2026-11-16
Chains
Sui · freezable

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

FlowX V2 is the constant-product pool deployment of FlowX Finance on Sui. Providers add both tokens, receive an LP position and supply inventory against which swaps execute. The 2026-08-16 survey measured about $0.20M. Trading fees and farming incentives do not undo adverse rebalancing as relative prices change, so the version-1 AMM-LP dossier controls. Sui settlement adds a separate chain dependency but is not needed to reach the LP rejection.

The research file

Mechanism applicability

FlowX distinguishes constant-product V2 pools from concentrated V3 positions. A V2 provider selects a token pair, contributes both assets and receives an LP position; permissionless farming pools can then add token emissions to an existing AMM position. Swaps change the reserve mix, so fee and farming income sits on top of paired market-making inventory.

Control and exit applicability

Pool contracts and the FlowX router execute swaps, while permissionless users may create pools and farming programs. The LP controls its receipt and can manage the position through the portfolio interface, but exit returns the pro-rata reserve assets then held and is exposed to token quality, pool depth, slippage, contract behavior and Sui settlement rather than a guaranteed original mix.

Current observation and perimeter

The DefiLlama API read on 2026-08-16 classified FlowX V2 as a DEX and reported approximately $0.20M entirely on Sui. FlowX documentation now offers both V2 and V3 liquidity plus an aggregator that routes across outside venues. This application covers only measured legacy V2 pool inventory, not V3 positions, xFLX staking or routed third-party liquidity.

Why the class rule decides

A FlowX V2 LP remains a pro-rata claim on paired reserves used for swaps, which is the exact inventory exposure rejected by the version-1 AMM-LP dossier. Higher TVL, farming emissions or improved routing would not remove it. Reopen only for a separately measured FlowX product whose return does not depend on pooled market-making assets.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.

ChainVerdictGradeControl constraint
SuiRejected freezable freeze and seizure are demonstrated: standing validator deny lists began freezing the Cetus exploiter’s ~$162M within about 80 minutes, and a Foundation-organized vote later moved the frozen funds without the owner’s keys.
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