diff --git a/contracts/stableswap-stackingDAO.clar b/contracts/stableswap-stackingDAO.clar
index 2897f6b..1fb9dbf 100644
--- a/contracts/stableswap-stackingDAO.clar
+++ b/contracts/stableswap-stackingDAO.clar
@@ -32,6 +32,9 @@
 ;; Number of tokens per pair
 (define-constant number-of-tokens u2)
 
+;; Permanently locked LP supply minted during pair creation
+(define-constant minimum-liquidity u1000)
+
 ;; Contract deployer
 (define-constant contract-deployer tx-sender)
 
@@ -872,6 +875,7 @@
             (scaled-up-balances (get-scaled-up-token-amounts initial-x-bal initial-y-bal x-decimals y-decimals))
             (initial-x-bal-scaled (get scaled-x scaled-up-balances))
             (initial-y-bal-scaled (get scaled-y scaled-up-balances))
+            (initial-lp-supply (+ initial-x-bal-scaled initial-y-bal-scaled))
         )
 
         ;; Assert that tx-sender is an admin using is-some & index-of with the admins var
@@ -886,8 +890,12 @@
         ;; Assert that x & y tokens are the same
         (asserts! (is-eq initial-x-bal-scaled initial-y-bal-scaled) (err "err-initial-bal-odd"))
 
-        ;; Mint LP tokens to tx-sender
-        (unwrap! (as-contract (contract-call? lp-token mint lp-owner (+ initial-x-bal-scaled initial-y-bal-scaled))) (err "err-minting-lp-tokens"))
+        ;; Assert that the initial liquidity can cover the permanent lock
+        (asserts! (> initial-lp-supply minimum-liquidity) (err "err-initial-liquidity-too-low"))
+
+        ;; Mint LP tokens to tx-sender and permanently lock minimum liquidity
+        (unwrap! (as-contract (contract-call? lp-token mint lp-owner (- initial-lp-supply minimum-liquidity))) (err "err-minting-lp-tokens"))
+        (unwrap! (as-contract (contract-call? lp-token mint this-contract minimum-liquidity)) (err "err-locking-minimum-liquidity"))
 
         ;; Transfer token x liquidity to this contract
         (unwrap! (stx-transfer? initial-x-bal tx-sender (as-contract tx-sender)) (err "err-transferring-token-x"))
@@ -898,7 +906,7 @@
         ;; Update all appropriate maps
         (ok (map-set PairsDataMap {y-token: (contract-of y-token), lp-token: (contract-of lp-token)} {
             approval: true,
-            total-shares: (+ initial-x-bal-scaled initial-y-bal-scaled),
+            total-shares: initial-lp-supply,
             x-decimals: x-decimals,
             y-decimals: y-decimals,
             balance-x: initial-x-bal,
diff --git a/tests/stableswap-stackingDAO_test.ts b/tests/stableswap-stackingDAO_test.ts
index 4e75bb3..02deaf7 100644
--- a/tests/stableswap-stackingDAO_test.ts
+++ b/tests/stableswap-stackingDAO_test.ts
@@ -42,6 +42,76 @@ Clarinet.test({
     },
 });
 
+// Test pair creation permanently locks minimum liquidity
+Clarinet.test({
+    name: "Ensure creating a pair locks minimum liquidity",
+    async fn(chain: Chain, accounts: Map<string, Account>) {
+        const deployer = accounts.get("deployer")!;
+
+        chain.mineBlock([
+            Tx.contractCall("ststx-token", "mint", [types.uint(100000000000000), types.principal(deployer.address)], deployer.address)
+        ]);
+
+        chain.mineBlock([
+            Tx.contractCall("stableswap-stackingDAO", "create-pair", [types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.ststx-token"), types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.stx-ststx-lp-token"), types.uint(100), types.ascii("test"), types.uint(10000000000000), types.uint(10000000000000)], deployer.address)
+        ]);
+
+        const lockedLp = chain.callReadOnlyFn("stx-ststx-lp-token", "get-balance", [types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.stableswap-stackingDAO")], deployer.address);
+        const ownerLp = chain.callReadOnlyFn("stx-ststx-lp-token", "get-balance", [types.principal(deployer.address)], deployer.address);
+
+        lockedLp.result.expectOk().expectUint(1000);
+        ownerLp.result.expectOk().expectUint(19999999999000);
+    },
+});
+
+// Test pair creation rejects liquidity that cannot cover the permanent lock
+Clarinet.test({
+    name: "Ensure creating a pair rejects liquidity at or below the lock",
+    async fn(chain: Chain, accounts: Map<string, Account>) {
+        const deployer = accounts.get("deployer")!;
+
+        chain.mineBlock([
+            Tx.contractCall("ststx-token", "mint", [types.uint(500), types.principal(deployer.address)], deployer.address)
+        ]);
+
+        const block = chain.mineBlock([
+            Tx.contractCall("stableswap-stackingDAO", "create-pair", [types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.ststx-token"), types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.stx-ststx-lp-token"), types.uint(100), types.ascii("test"), types.uint(500), types.uint(500)], deployer.address)
+        ]);
+
+        block.receipts[0].result.expectErr().expectAscii("err-initial-liquidity-too-low");
+    },
+});
+
+// Test initial LP owner cannot fully empty the pool
+Clarinet.test({
+    name: "Ensure initial LP owner cannot withdraw locked minimum liquidity",
+    async fn(chain: Chain, accounts: Map<string, Account>) {
+        const deployer = accounts.get("deployer")!;
+
+        chain.mineBlock([
+            Tx.contractCall("ststx-token", "mint", [types.uint(100000000000000), types.principal(deployer.address)], deployer.address)
+        ]);
+
+        chain.mineBlock([
+            Tx.contractCall("stableswap-stackingDAO", "create-pair", [types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.ststx-token"), types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.stx-ststx-lp-token"), types.uint(100), types.ascii("test"), types.uint(10000000000000), types.uint(10000000000000)], deployer.address)
+        ]);
+
+        const block = chain.mineBlock([
+            Tx.contractCall("stableswap-stackingDAO", "withdraw-liquidity", [types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.ststx-token"), types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.stx-ststx-lp-token"), types.uint(19999999999000), types.uint(0), types.uint(0)], deployer.address)
+        ]);
+
+        block.receipts[0].result.expectOk().expectTuple()["withdrawal-x-balance"].expectUint(9999999999500);
+        block.receipts[0].result.expectOk().expectTuple()["withdrawal-y-balance"].expectUint(9999999999500);
+
+        const remainingPair = chain.callReadOnlyFn("stableswap-stackingDAO", "get-pair-data", [types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.ststx-token"), types.principal("ST1PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM.stx-ststx-lp-token")], deployer.address);
+        const pairTuple = remainingPair.result.expectSome().expectTuple();
+
+        pairTuple["balance-x"].expectUint(500);
+        pairTuple["balance-y"].expectUint(500);
+        pairTuple["total-shares"].expectUint(1000);
+    },
+});
+
 // // Test get current cycle
 // Clarinet.test({
 //     name: "Ensure we can get the current cycle",
@@ -1606,4 +1676,4 @@ Clarinet.test({
         block.receipts[0].result.expectErr()
         console.log(JSON.stringify(block.receipts));
     },
-});
\ No newline at end of file
+});