Heaven is not just a launchpad, it is also a closed-loop AMM. This means that the god flywheel earns typical launchpad fees, and typical AMM fees. “Wrapper” launchpads that are built on top of existing AMM’s need to charge fees on top of what the AMM is charging. Instead, by owning every aspect of the stack, Heaven earns 5-10x more revenue per dollar of volume when compared with other “wrapper” launchpads, without passing on any of the additional fees to users.
There are no LP fees on Heaven’s pools. Instead, Heaven’s pools naturally have a thicker initial LP to market cap ratio than pools on Bonk or Pump. Instead of relying on volume to thicken a pool as it’s traded, that pool is algorithmically thicker on Heaven. Why do this, and what does it mean for protocol profitability?
LP fees were initially implemented on Curve and Uniswap, where there was a vision for global collective liquidity to be bootstrapped and provided by token holders. In todays age, LP typically comes from a singular source for new token deploys, yet the LP fee has remained enshrined in existing AMM systems as a relic of the past.When you deploy on Heaven, a significant amount of LP is then seeded and burned upon token creation with a relatively thick LP to market cap ratio. In this case there is no need for additional LPs. The token has plenty of LP to work with in the first place.Many people have been trained to immediately equate “thicker LP” with “LP fees”, but the two of these are mutually exclusive. By algorithmically setting the “initial LP” in a pool, Heaven is able to dictate the thickness of that pool algorithmically. It removes the guesswork, and ensures that there is adequate LP throughout the token’s lifespan.
Because Heaven isn’t paying any additional LP fees, and instead opting to have an algorithmically thicker pool, this allows the standard 0.2% LP fee charged by AMMs today to instead be taken and reinvested back into $LIGHT’s god flywheel.The impacts of this cannot be understated.After graduation, Pump earns 0.05% of every trade on PumpSwap, while Heaven earns 0.25%. This is means that Heaven is 5x more profitable than Pump on “graduated” pairs, with no additional net fees being passed to the end user while retaining a thick LP to market cap ratio algorithmically, rather than by volume.This scaled even more aggressively when compared with Bonk.An additional benefit of this fee structure is that it aligns Heaven’s incentives for tokens launched on Heaven to be successful. Heaven doesn’t need there to be a ton of new pairs to be profitable.
Due to Heaven’s permissioned fee structure, creator tokens have a 0.5% protocol fee rather than a 0.25% fee. Heaven provides far more support and functionality for Creator tokens and this is reflected here. This means 2x more money flowing back towards the god flywheel.
Heaven’s 1% “pre-bond” fee kicks in whenever a pair is trading under a $100k marketcap, not just before the pair “bonds”. Traders are more willing to pay within this range due to high volatility, so this shouldn’t be a single binary fee switch that turns off.By implementing tiered fees, tokens that are ranging at lower levels after graduating, are generating more money for Heaven’s flywheel.
Heaven earns a significant amount more money than traditional AMM’s and launchpads on the market today, without passing on any additional net fees to the end user, while algorithmically ensuring that LP is healthy on all Heaven pairs.All of this additional margin goes back towards the god flywheel.
