Boot Finance: AMM for Customizable Liquidity and Price Behavior

What is Boot Finance

Friends, imagine we’re shopping at a market—prices are clearly marked, and it’s a straightforward exchange. But in the world of cryptocurrency, the prices of digital assets are constantly changing, often at breakneck speed, like riding a roller coaster. Boot Finance (project abbreviation: BOOT) is a decentralized finance (DeFi) project that operates primarily around a special “trading desk” called Customswap.

This “trading desk” Customswap aims to help projects that have issued their own digital assets (tokens) better manage their token prices, making price fluctuations less extreme. Especially during major market swings, it can provide a “protective umbrella” for tokens.

You can think of Customswap as a very smart “price regulator.” Instead of letting prices float freely, it allows project teams to set rules to influence the price trajectory of their tokens according to their needs. For example, a project can set a “target price,” and then have this “trading desk” behave more stably when the token price falls below the target, like adding a “floor” to the price; when the price is above the target, it can allow freer upward movement.

Target users and core scenarios: Boot Finance mainly serves blockchain projects that have issued their own tokens. These projects want better control over their token liquidity (liquidity refers to how easily assets can be converted to cash) and price behavior, to avoid wild price swings that could harm the project’s overall health.

Typical usage flow: A project team might set an ideal price range for their token on Customswap. They can then customize the trading curve, for example, making the trading mechanism more stable when the token price drops to a critical point (such as a liquidation risk threshold); and allowing more room for price increases when the price rises.

Project Vision and Value Proposition

Boot Finance’s vision is to bring more stable token price management solutions to the decentralized finance sector. Through its unique Customswap mechanism, it aims to solve a common problem in the crypto market: severe token price volatility often directly impacts the operation and health of entire projects.

Core problem to solve: In DeFi, the price of many project tokens is closely tied to the project’s own “health”—a phenomenon known as “reflexivity.” This means if the token price drops, people may lose interest in the project, or even trigger liquidation mechanisms in some protocols, causing a chain reaction. Boot Finance aims to protect projects from the negative effects of high market volatility by providing an “upward-skewed” automated market maker (AMM, Automated Market Maker—a decentralized trading protocol that uses mathematical algorithms to automatically execute trades).

Differences from similar projects: There are many AMMs on the market, such as Uniswap and Curve. Uniswap uses a “constant product” model, which results in greater price volatility; Curve specializes in stablecoin trades with minimal volatility. Customswap stands out by dynamically combining the strengths of these two mainstream AMMs, allowing project teams to customize trading curves according to their needs. It’s like giving project teams a “bespoke” liquidity pool, enabling flexible price behavior adjustments based on how the token performs in different price ranges.

Technical Features

The core technology of Boot Finance is its Customswap automated market maker (AMM).

Technical features:

• Dynamically combines AMM models: Customswap can dynamically combine the advantages of the two most popular AMM models: one like Curve, suitable for trading price-stable assets (stablecoins), offering low slippage (slippage refers to the difference between expected and actual transaction prices); the other like Uniswap, suitable for trading various assets, providing broader price discovery.
• Customizable trading curves: Project teams can choose a target price for their token and customize the trading curve above and below this target. For example, when the price is below a “floor price,” a curve similar to stablecoin trading can be used to support the price; when the price is above the “floor,” a freer curve can be adopted, allowing more room for price appreciation.
• Uneven Slippage: This means trading slippage is not linear, but designed to be “upward-biased.” This mechanism helps projects better resist downward pressure during market volatility, while allowing prices to rise more easily under favorable conditions.

Technical architecture: As a decentralized finance project, Boot Finance’s Customswap is deployed as smart contracts on the blockchain. Based on its token contract address, it runs on the Ethereum blockchain.

Consensus mechanism: Boot Finance itself, as an application-layer protocol, relies on the underlying Ethereum blockchain’s consensus mechanism for security. Ethereum currently uses Proof-of-Stake (PoS), which validates transactions and creates new blocks through token staking, rather than traditional computational competition (Proof-of-Work).

Tokenomics

There are two main tokens in the Boot Finance project: $BOOT and $BOOTusd.

Tokenomics features:

• Both tokens have utility and governance functions.
• One key role of $BOOTusd is as a “token sink” for $BOOT, meaning the use of $BOOTusd may result in $BOOT being burned or locked, reducing its circulating supply.

Basic token information:

• Token symbols: BOOT and BOOTusd.
• Issuing chain: Based on the known contract address, BOOT is deployed on the Ethereum blockchain.
• Total supply or issuance mechanism: Public information does not currently specify the total supply or specific issuance mechanism for $BOOT and $BOOTusd.
• Inflation/Burn: $BOOTusd as a “token sink” for $BOOT suggests $BOOT may have some deflationary pressure, i.e., its circulating supply may decrease.
• Current and future circulation: According to some market tracking data, Boot Finance’s market cap is currently shown as $0, with circulating supply also at 0. This indicates very low market activity, or that the token is not yet circulating on mainstream exchanges.

Token use cases:

• Governance: Users holding $BOOT and $BOOTusd can participate in project governance, voting on future proposals and jointly deciding the project’s direction.
• Value capture: $BOOTusd, as a “token sink” for $BOOT, may capture $BOOT’s value through some mechanism and affect its scarcity.

Token allocation and unlocking information: No detailed information on specific token allocation ratios or unlocking schedules is currently available in public sources.

Team, Governance, and Funding

Core members and team features:

The story of Boot Finance is closely tied to another project called Swerve Finance. Shortly after Swerve Finance was founded in September 2020, it faced a severe crisis, with team members continuing to work without pay after the founder’s sudden resignation. At the time, the project was short on funds and had no dedicated treasury for expenses.

In this predicament, the Swerve Finance community held a crucial DAO (Decentralized Autonomous Organization—a type of organization managed and operated via smart contracts and token-holder voting) vote to transfer ownership of a pool called swUSD to a multisig (Multisig—a wallet or contract requiring multiple private keys to authorize operations) treasury, so the team could withdraw fees to keep the project running.

Boot Finance was “reborn from the ashes” of Swerve Finance after these challenges. This suggests its core team is likely a group of experienced developers with deep DeFi understanding and resilience in adversity.

Governance mechanism:

Boot Finance adopts a decentralized governance model. Both native tokens, $BOOT and $BOOTusd, are designed as governance tokens. This means token holders can vote on major project decisions, such as protocol upgrades, parameter adjustments, and treasury usage proposals.

Treasury and funding:

While there is no detailed information about Boot Finance’s own treasury, its predecessor Swerve Finance faced a funding crisis, with no team token allocation or treasury. The emergence of Boot Finance may indicate lessons learned, but there is currently no public data detailing its current financial status or runway.

Roadmap

Due to the lack of an official whitepaper or detailed roadmap, we mainly outline Boot Finance’s development trajectory based on historical events and public information.

Key historical milestones and events:

• Circa September 2020: Swerve Finance is founded, the predecessor to Boot Finance, with their stories closely linked.
• Late 2020 – Early 2021: Swerve Finance faces crisis, with the team short on funds and the founder resigning, but members continue to work unpaid.
• DAO vote during crisis: The Swerve Finance community votes via DAO to transfer swUSD pool ownership to the treasury for operational funding.
• September 7, 2021: A Medium article about Boot Finance is published, marking Boot Finance’s “rebirth” from Swerve Finance’s difficulties. The article notes Boot Finance will learn from past experiences to become stronger and wiser.
• Project launch: Boot Finance officially launches as a DeFi project focused on Customswap AMM, aiming to solve token price volatility issues.

Future plans and milestones:

No clear future roadmap or specific plans for Boot Finance have been found in public sources. The project’s future development will depend on community governance decisions and market conditions.

Common Risk Reminders

Investing in any cryptocurrency project carries risks, and Boot Finance is no exception. Here are some common risks to be aware of:

Technical and security risks:

• Smart contract risk: Boot Finance’s core is the Customswap AMM, a series of smart contracts deployed on the blockchain. Smart contracts may have vulnerabilities; if attacked or flawed, they could lead to loss of funds. Even if audited, audits do not guarantee 100% security.
• Complexity risk: Customswap dynamically combines two AMM models and allows custom trading curves. This complex design may increase potential technical risks and maintenance difficulty.

Economic risks:

• Market volatility: The crypto market is extremely volatile. Even if the project aims to mitigate token price swings, it cannot eliminate overall market risk.
• Liquidity risk: According to some market data, Boot Finance’s tokens currently show a market cap of $0 and circulating supply of 0, and are marked as “untracked” or “inactive” on some platforms. This means the tokens may lack sufficient liquidity, making buying and selling difficult, with an unhealthy price discovery mechanism and extremely high price manipulation risk.
• Low project activity: The project currently has low market activity, which may indicate stalled development, insufficient community support, or lack of market attention, affecting its long-term prospects and token value.

Compliance and operational risks:

• Regulatory uncertainty: Global DeFi and crypto regulations are still evolving. Future regulatory changes may negatively impact project operations and token value.
• Team transparency: While we know some of the project’s origin story, there is little public information about the core team’s identities, backgrounds, and operating entities, increasing investor uncertainty.
• Competition risk: The DeFi sector is highly competitive, with new AMMs and liquidity solutions constantly emerging. Boot Finance must keep innovating to stay competitive.

Please note: The above risk reminders are not exhaustive and are for reference only. Always conduct thorough independent research and risk assessment before making any investment decisions.

Verification Checklist

To better understand the Boot Finance project, here are some suggested verification points:

• Block explorer contract address: The Ethereum contract address for Boot Finance’s token (BOOT) is
  0x0337fe811809A0aaf9B5D07945b39E473dE4c46E
  . You can use Etherscan or other block explorers to check the contract’s transaction history, holder distribution, and code.
• GitHub activity: Check if the project has a public GitHub repository and assess code update frequency, number of contributors, and community engagement. An active GitHub usually means ongoing development and maintenance. No direct GitHub link is currently provided in search results.
• Official website and whitepaper: Try to find Boot Finance’s official website and whitepaper for the most authoritative and detailed project information.
• Community channels: Follow the project’s official social media (such as Twitter, Discord, Telegram, etc.) to learn about community discussions, project announcements, and development progress.
• Audit reports: If the project claims its smart contracts are audited, look for and carefully read the audit reports to understand the security assessment results.

Project Summary

Boot Finance is a decentralized finance project born from the difficulties faced by Swerve Finance, with its core innovation being the Customswap automated market maker (AMM). Customswap aims to help digital asset projects better manage their token prices by dynamically combining the strengths of different AMM models and allowing project teams to customize trading curves—especially during periods of high market volatility, providing “protection” and an “upward bias” mechanism to resist downside risk.

The project’s vision is to address the problem of high reflexivity in crypto token prices, where price swings affect project health. Through its two governance tokens, $BOOT and $BOOTusd, the project aims for decentralized governance and community-driven decision-making.

However, based on current public information, Boot Finance’s tokens have very low market activity, with market cap and circulating supply shown as 0, and marked as “untracked” or “inactive” on some data platforms. This may mean the project is currently stagnant or has not gained broad market recognition and liquidity. For potential participants, this implies extremely high liquidity risk and uncertainty.

In summary, Boot Finance’s Customswap mechanism theoretically offers an interesting and potentially valuable solution for token price management, and its origin story shows the team’s perseverance in adversity. But given its current market performance and information transparency, anyone interested in the project is strongly advised to conduct extremely thorough independent research and fully recognize the significant risks involved. This is not investment advice; please use your own judgment.