Boot Finance will not be introducing an admin fee to any of its swap pools as a matter of philosophy. Take the example of Sushi/CRV as an example, it allocated a % of it’s swap revenue as a protocol fee, and asks its users to stake their tokens to get a % of its revenue. In fact this is the commonly accepted method of running an AMM.
Boot Finance does not believe this, we believe that this is a Web 2.0 way of looking at AMMs. Viewing AMMs as pseudo equities that generate a cashflow. The problem is that this is rent seeking behaviour that crypto open source philosophy abhors. Look to what happens once inflation incentives run out for Sushi or CRV, why would an LP continue to accept a rent seeking middleman when the code can be easily forked?
Instead, 100% of swap fees will always go to the LP.
We do not view an AMM project as a pseudo web 2.0 equity project, instead we view it as an “AMM nation”, and the token sink and value accrual will be through the BOOTUSD stablecoin. By tying BOOT inflation incentives to pools that consist of BOOTUSD, 100% of LP fees accrue to the LP, the BOOTUSD stablecoin proliferates the Defi ecosystem in multiple L2s. This strategy is made famous by LUNA and it’s stablecoin UST, where the value accrual and virtuous circle between the Stablecoin and the native token occurs in that ecosystem.
Similarly we believe that AMM projects should also treat incentives and value accrual the same way.
We do not believe the thesis that only a few stablecoins will win in crypto, in fact, the past 3 years of evidence suggests that more and more viable stablecoins will proliferate and each project could have it’s own stablecoin. This “stablecoin maximalism” not only is supported by evidence but is also beneficial to Boot Finance that provides swaps for all of these stablecoins.
We do not believe that one size fits all AMMs are the future for Defi. Outside of the well understood delineations of stableswap vs constant swap, DEX vs CEX, L2 vs Mainnet.... We believe in Defi 2.0 that new AMM and “pseudo AMMs” will introduce features that projects will want to take advantage of in addition to rather than instead of the “mega AMMs”.
We see some of these as Tokemak and OlympusDAO that are pioneering PCV(protocol controlled value), the success of these suggest that offering a swap is now a commodity and that projects now want more functionality out of their liqidity.