Unwind SyncSwap NODL liquidity on zkSync — consolidate L2 to Koi

[Douglasacost]

Goal

Exit the SyncSwap NODL position on zkSync Era so Koi becomes the only NODL pool on L2. The freed liquidity funds the Uniswap L1 pool seed (#128).

Why

Team decision (2026-08-10) given the recent status of SyncSwap: consolidate L2 liquidity into a single venue before opening the L1 pool.

Checklist

• Inventory the position: SyncSwap pool address, LP token balance, share of pool, current NODL + paired-asset amounts, and who custodies the LP tokens (verify it is the zkSync Safe before planning the exit).
• Decide the exit strategy: single withdrawal vs staged. A single large withdrawal is a visible market signal; staged exits reduce impact but extend exposure to the venue being exited. Given the reason for leaving, bias toward a prompt exit.
• Execute the withdrawal from the Safe; assets return to the zkSync Safe — never an EOA.
• Decide the split: how much of the freed NODL/paired asset bridges to L1 for the Uniswap seed vs stays as Koi-side inventory for peg arbitrage.
• Bridge the L1 share: NODL via the NODL bridge (L2→L1 finalization takes ~hours — plan the timeline), ETH via the canonical bridge.
• Communicate if the position is publicly visible: "consolidating L2 liquidity to Koi ahead of the L1 pool launch" reads very differently from an unexplained liquidity pull.

Impact on #128 (tracked there)

• The L1 initialization price reference becomes Koi only — a single, thinner source. Use a longer TWAP window and cross-check against aggregator/CEX mid-price before initializing.
• Peg monitoring after launch references the Koi pool.
• This unwind is a dependency for Create Uniswap pool for NODL on Ethereum L1 #128 Phase 1 (it supplies the seed inventory).

[Douglasacost]

Unwind runbook (position verified on-chain, 2026-08-10)

The position:

• Pool: SyncSwap Classic NODL/WETH 0x9E83D5580F866cA5CF9c14a659c436f91549f283 (from the classic factory getPool(NODL, WETH); token0 = WETH, token1 = NODL; vault 0x6214...d091)
• zkSync Safe (0x5e09...86C9) holds 3000.9322 LP tokens directly (not staked) = 79.88% of the pool
• Underlying ≈ 1.5153 WETH + 8,667,223 NODL; pool total is 1.8969 WETH + 10.85M NODL
• No NODL/USDC SyncSwap classic pools exist — this is the only position to exit
• ⚠️ Confirm no additional LP sits in a SyncSwap farm/staking contract (the Safe's direct balance is 79.88% — the remaining ~20% belongs to other LPs, but double-check the Safe has nothing staked elsewhere)

What unwinding means mechanically: burn the LP tokens, receive both assets pro-rata. It does not move the pool price (it's not a sell), so there is no price-impact reason to stage it — the "staged vs single" question is purely about optics/comms.

Recommended path: one atomic Safe batch (Transaction Builder)

Two variants:

A. Via the SyncSwap Router (has slippage floor — preferred):

1. pool.approve(router, 3000932228438344894086)
2. router.burnLiquidity(pool, 3000932228438344894086, data, minAmounts, 0x0, "")
   • data = abi.encode(safeAddress, uint8 withdrawMode) — withdrawMode 1 = receive native ETH, 2 = receive WETH. Use 1 or 2, never 0 (0 leaves the proceeds as SyncSwap vault internal balance — the opposite of exiting the venue).
   • minAmounts = [minWETH, minNODL] (token0, token1 order) — set to the computed underlying minus ~1%.
   • ⚠️ Verify the current router address from SyncSwap's official docs/verified explorer sources before approving LP to it — do not take it from a chat or this issue.

B. Router-free (zero external dependencies, no slippage floor):

1. pool.transfer(pool, 3000932228438344894086) (LP to the pool itself)
2. pool.burn(abi.encode(safeAddress, uint8 withdrawMode))

Variant B must be one atomic MultiSend batch: after a lone transfer lands, anyone can call burn with their own address and take the underlying. Batched, it's safe — and it only trusts the pool address, which is verifiable from the factory.

zkSync Era has no public mempool, so sandwich risk between approval and burn is low either way — but atomicity and min-amounts are cheap insurance; use variant A unless the router can't be confidently verified.

Sequence

1. Dry-run the exact Safe batch on a fork (Tenderly) — confirm the Safe receives ≈1.515 WETH/ETH + ≈8.67M NODL.
2. Optional smoke test: burn a small tranche (e.g. 1% of LP) end-to-end first, then the remainder.
3. Execute the full burn; verify balances in the Safe.
4. Split per the liquidity plan (Create Uniswap pool for NODL on Ethereum L1 #128): L1 seed share → bridge (NODL via the NODL bridge, ~hours to finalize; ETH via canonical bridge), remainder stays as Koi-side inventory.
5. Comms: frame as consolidation to Koi ahead of the L1 pool launch.

⚠️ Sizing flag for #128

At the pool's implied price (~0.000000175 ETH/NODL), the entire recovered position is ≈ 3 ETH-equivalent (~1.5 WETH + 8.67M NODL). That alone is far too thin to seed a credible L1 pool — mainnet gas makes arbitrage on a pool that small uneconomical, and it would be trivially manipulable. The L1 seed needs to be sized in the #128 liquidity plan with additional treasury inventory, not just this unwind's proceeds.