Thread by @The_ReadingApe

In conjunction with @bootfinance release of the Litepaper, we're going to share a few highlights of it. Hopefully, the Litepaper will become even lighter for a quick review of what's important. Will still highly recommend everyone to read the entire thing for context.

@bootfinance What is Boot Finance?
🔸 Aims to let projects control their own liquidity
🔸 One massive single liquidity pool cannot persist as projects move to L2
🔸 Arbitrage bots 🤖 can arb the price across multiple liquidity pools cheaply and easily
🔸 Boot Finance aims to reboot 🥾 that

@bootfinance Problems with current AMM
🔸 Constant product swap curve needs to be relooked
🔸 Massive value leak 💧 as tokens are speculated on but not flowing back to the project

3-pronged 🔱 proposal
🔸 Stableswap public AMM on newer EVM chains
🔸 Customswap AMM
🔸 Unified cross-chain AMM

@bootfinance Problems with AMM now
🔸 Constant product AMM dominate DEX market today - not the preferred swap curve
🔸 E.g. during public sales, projects do 'bonding curve' or 'auction mechanism' to have price discovery
🔸 There's no on-chain decentralized solution for market making

@bootfinance A multichain ⛓️⛓️ world with many winners
🔸 Not just one single winning chain
🔸 Most projects are optimised for single-chain operations
🔸 Simple bridges are not sufficient - will need Interchain Message Relay (IMR) to access unified liquidity pools

@bootfinance Solution for the AMM problem by Boot Finance
🔸 Have a Customswap curve
🔸 Constant product curve for rapid price movement
🔸 Stableswap curve to dampen price movement

@bootfinance E.g. of "Up Only" Customswap:
🔸 Token ICO at $1
🔸 Set constant product curve above $1 - allows the price to appreciate as demand increase for it
🔸 Set stable swap curve below $1 - dampens the price to absorb selling
🔸 Does this by shifting liquidity at different price ranges

@bootfinance Example of a Customswap curve (blue) compared to constant product AMM (red)
🔸 Red line shows a constant 50/50 ratio between the two tokens in the pool
🔸 Blue line shows that as price decreases below $1, more and more liquidity is used to support the price & pool % increases

@bootfinance Seller subsidized LP fees
🔸 Currently, DEX has equal LP fees for both sellers and buyers E.g. 0.3% fees for all
🔸 For Boot Finance project controlled AMM, different fees for sellers and buyers can be set
🔸 E.g. 0.6% for sellers and 0% for buying to encourage buying/hodling

@bootfinance Omni-chain universal AMM
🔸 There will be multiple L2 chains with their own ecosystems
🔸 In the future, interconnecting chains with a fixed set of standards becomes important
🔸 Traditional cross-chain model assumes user hops across multiple chains to port liquidity around
But..

@bootfinance 🔸 Boot finance thinks largest users of cross-chain AMMs are projects themselves
🔸 Universal AMM pools fragmented liquidity across both custom project AMMs and traditional DEXes
🔸 Users will just interact with this universal AMM

@bootfinance Problems with bridges
🔸 High gas costs - less efficient
🔸 Hurdles in adoption - cumbersome/difficult to interact with bridges

Solution
🔸 Boot Finance's IMT solution makes it easy for users
🔸 Transfers complexities to the protocol layer - users just interact with protocol UI

@bootfinance Boot Finance solution for liquidity pools
🔸 Localized pools that operate within the boundaries of the ecosystem and facilitate local swaps
🔸 Universal pool to amalgamate all localized pools on supported chains
🔸 Users can opt for the localized pools or universal pool to use

@bootfinance Universal pool
🔸 Specialised virtual AMM
🔸 Has a connectivity solution called Boot Rails to make sure all supported chains have the same standards of operations
🔸 Has Boot Rails-powered oracles for near real-time transfer of liquidity data across all chains

@bootfinance Tokenomics
🔸 Beyond the scope of this highlight
🔸 Will have a proper article to discuss all the tokenomics in detail in due time

@bootfinance Roadmap (subjected to changes)
🔸 Phase 1 - 2021 Q2 - Dual chain launch of Boot Finance
🔸 Phase 2 - 2021 Q3 - Experimental pools
🔸 Phase 3 - 2022 Q1 - More Experimental pools
🔸 Phase 4 - 2023 Q1 - Full cross-chain connectivity

@bootfinance The full Litepaper of Boot Finance can be found here: blog.boot.finance/boot-finance-l…

@bootfinance You can read about details of different aspects of Boot Finance over several posts:

1) Origin story: thereadingape.substack.com/p/the-origin-s…
2) TGE: thereadingape.substack.com/p/boot-token-g…
3) Customswap: thereadingape.substack.com/p/customswap-b…

@bootfinance The NFT giveaway is still ongoing. It's really an easy hurdle to cross:

🔸 Just need to invite 5 people in the Discord
🔸 Will be eligible for an NFT
🔸 NFT enables early access to TGE

More details here: thereadingape.substack.com/p/public-sale-…