What Is FLAT?
FLAT is the CPI-pegged stablecoin of the FLAT Protocol — a censorship-resistant monetary system built on Ethereum. Unlike traditional stablecoins pegged to the US dollar, FLAT tracks the Consumer Price Index (CPI), preserving purchasing power against inflation.
Key properties of FLAT:
- No blacklist function — no one can freeze or seize your FLAT
- No admin keys — the contract is immutable
- CPI-pegged — price is determined by the Bureau of Labor Statistics CPI data via the on-chain oracle
- Censorship-resistant — operates on Ethereum with no centralized control
FLAT's price is determined by the CPI oracle — the same Bureau of Labor Statistics data that governs the entire protocol. When you buy FLAT through FlatSale, you are buying at the mathematically correct CPI price, not a market price set by speculation.
How FlatSale Works
The mechanics are simple and transparent. One function: buy(). One input: ETH. One output: FLAT.
The buy() Function
function buy() external payable
When you call buy() with ETH:
- Price Calculation: The contract reads the CPI oracle price and the Chainlink ETH/USD feed to determine how many FLAT tokens your ETH buys
- 90% to Protocol-Owned Liquidity: 90% of your ETH is paired with newly minted FLAT in the Uniswap V2 pool
- 10% to Treasury: The remaining 10% goes to the protocol treasury for operational sustainability
- FLAT Minted: New FLAT tokens are minted directly to your wallet
The 90% POL Model
This is the critical innovation. In most token sales, raised ETH sits in a multisig or gets spent. In FlatSale, 90% of every purchase becomes protocol-owned liquidity. The addLiquidity() function pairs ETH with newly minted FLAT in the Uniswap V2 pool. The resulting LP tokens are split: 85% to the protocol treasury (flatcash.eth) and 5% to FlatEngine (the peg-management system).
This means:
- Every purchase deepens the pool
- Slippage decreases over time
- The liquidity floor only grows
- LP tokens are held by the protocol — not burned, not lost
The Liquidity Battery: How Uniswap LP Tokens Stabilize FLAT
Most protocols burn their LP tokens to signal permanence. We don't. We hold them — because LP tokens are not just proof of liquidity. They are batteries.
What Is a Liquidity Battery?
A Uniswap V2 LP token represents a claim on both sides of a trading pair — in this case, FLAT and WETH. When the protocol holds LP tokens instead of burning them, it retains the ability to withdraw liquidity from the pool in times of extreme stress. This is the discharge mechanism.
Think of it this way:
| State | Battery Analogy | Protocol Action |
|---|---|---|
| Normal conditions | Battery charging | LP tokens sit in treasury, deepening the pool with every new purchase. More liquidity = tighter spreads = more stable price. |
| FLAT trades below CPI peg | Battery discharging | Protocol can withdraw LP, receiving both FLAT and ETH. The withdrawn FLAT is effectively removed from circulation (reducing sell pressure), and the ETH can be redeployed to buy FLAT on the open market — pushing price back toward peg. |
| FLAT trades above CPI peg | Battery at rest | The oracle price mechanism naturally corrects upward deviations since new buyers get FLAT at the CPI price, creating arbitrage pressure downward. |
Why Not Burn?
Burning LP tokens is irreversible. It signals commitment, but it also removes a critical defense tool. Consider what happens during a market-wide crash:
- ETH drops 50% — the pool's ETH side loses dollar value
- Panic sellers dump FLAT — FLAT trades below its CPI peg
- With burned LP tokens: The protocol can do nothing. It watches the peg break and hopes arbitrageurs fix it.
- With held LP tokens: The protocol withdraws a portion of its LP position, recovers both FLAT and ETH, removes the excess FLAT from circulation, and uses the ETH to buy more FLAT at the depressed price — actively defending the peg.
The LP tokens held by the treasury are a strategic reserve, not dead capital. They are the protocol's ability to intervene when markets become irrational.
The FlatEngine: Automated Peg Management
5% of all LP tokens go to FlatEngine — a dedicated peg-management system. FlatEngine's role is to monitor the FLAT/ETH pool and act when the market price deviates from the CPI oracle price:
- Below peg: FlatEngine can discharge LP to withdraw liquidity, reducing FLAT's circulating supply and using recovered ETH to buy FLAT — compressing the spread back to peg
- Above peg: FlatEngine can add single-sided FLAT liquidity to increase sell-side depth, bringing the price back down toward the oracle price
This is not a theoretical mechanism. The LP tokens are on-chain, held by known addresses, and their movements are fully auditable on Etherscan.
The Charging Cycle
Every time someone buys FLAT through FlatSale, the battery charges further:
New Purchase → 90% ETH + minted FLAT → addLiquidity() → LP tokens → 85% Treasury + 5% FlatEngine
The pool gets deeper. The battery gets larger. The protocol's ability to defend the peg grows with every transaction. This is a self-reinforcing stability mechanism — the more FLAT is purchased, the more ammunition the protocol has to maintain its CPI peg during adverse conditions.
Safety Features
| Feature | Implementation |
|---|---|
| Immutable Contract | No proxy, no upgrade path, no admin functions |
| Oracle-Priced | CPI price from Bureau of Labor Statistics via on-chain oracle |
| Chainlink ETH/USD | Real-time price feed (0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419) |
| 90% Protocol-Owned Liquidity | LP tokens held by treasury (85%) and FlatEngine (5%) — strategic reserves for peg defense |
| Verified on Etherscan | Full source code readable and auditable |
| No Blacklist | Cannot freeze, seize, or block any address |
| No Admin Override | No owner functions that can alter behavior |
Contract Addresses
| Contract | Address |
|---|---|
| FlatSale | 0x570D1459...8AC8C349 |
| FLAT Token | 0x8B08...7E2F |
| CPI Oracle | 0x1234...5678 |
| FLAT/WETH Pool | 0xFD1E...2A72 |
How to Buy
- Go to flat.cash/buy-flat
- Connect your wallet (MetaMask, WalletConnect, or any Ethereum wallet)
- Enter the amount of ETH you want to spend
- Click Buy — the transaction executes the
buy()function - FLAT appears in your wallet at the CPI oracle price
The /buy-flat page shows live on-chain data: current CPI oracle price, Uniswap market price, pool depth, and recent transaction count — all read directly from the blockchain.
Why FLAT Matters
FLAT is not another dollar stablecoin. It is a new kind of money — one that preserves purchasing power by tracking real inflation data. While the dollar loses value every year, FLAT's peg adjusts upward with CPI. Combined with the protocol's immutable smart contracts and censorship-resistant design, FLAT represents a monetary system that no government or corporation can control, freeze, or debase.
The FlatSale contract is live. The math is on-chain. The liquidity is a battery — always charging, ready to discharge when needed.