$LIGHT - The Hyperliquid of Launchpads

Introduction

Heaven is a launchpad and AMM on Solana. Its key differentiator is its flywheel mechanism, where 100% of protocol revenue is used to buy and burn its native token $LIGHT forever. Heaven is designed to support projects which accrue revenue to their launched tokens. Thus, every launch on Heaven gets its own flywheel address, where everything sent to that address is aped into the project’s token and burnt. Although launches are permissionless, Heaven features a permissioned fee structure designed to prevent scam tokens from extracting value from the ecosystem.

Why Heaven?

There are currently 4 main launchpads on Solana: Pump.fun, Bonk.fun, Believe and Meteora/Jup Studio. However, none of these launchpads feature all of the following properties:

• ◆100% of protocol revenue to the native token, forever. While Pump.fun is temporarily doing buybacks with the majority of revenue, there is no guarantee that these buybacks will continue, and a small percentage of revenue is still being sold.
• ◆Designed for launches with their own flywheels. Heaven makes it easy for any launch to add a flywheel to automatically buyback and burn their token.
• ◆Permissioned fee structure which classifies launches into different categories with different fee structures, while preventing extractive deployers from profiting off launches.

Heaven is built to support projects which accrue value to token holders, instead of extractive deployers which launch thousands of tokens to extract SOL from traders.

Flywheels for everyone

Every token deployed on Heaven gets its own flywheel address. If the deployer enables the flywheel, everything sent to the flywheel address will be used to buy and burn the deployed token. If the deployed token is sent, it will be burnt directly. Creators can also customise the proportion of the creator fee they earn to send to the flywheel address. By implementing this, Heaven aims to support projects which accrue value to token holders.

Permissioned fees

Each launch that passes $100k in volume is reviewed and grouped into three distinct categories by Heaven’s admins:

• ◆Creator - A token with a specific builder, team, or artist behind it. A 1% creator fee goes to the creator in SOL.
• ◆Community - A meme that was spawned organically, with no specific team or individual behind it. A 0.1% creator fee goes to the deployer in SOL.
• ◆Blocked - A scam token designed to purely extract value from traders. All collected creator fees go to buying back $LIGHT.

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Token deployers can choose to self-categorise their launch as either Creator or Community. If they choose Creator, Heaven’s admins begin the review process. The 1% creator fee is temporarily locked by Heaven’s contract until the review is complete. After review, if the launch is categorized as Creator, the deployer can access the creator fees, or send a portion to the token’s flywheel address. If the launch is categorised as Community, 90% of the initial fees that were collected go to the token’s flywheel address, and the remaining 10% of fees will be claimable by the deployer.

If the deployer initially self-categorizes their launch as Community, they skip this review process entirely.

This permissioned fee structure allows anyone to launch on Heaven, but deployers must show proof that they are the creator, team, or artist behind the project to access their creator fees. This blocks fees from going to extractive deployers, instead going to buying and burning $LIGHT.

Where does $LIGHT revenue come from?

The table below summarises Heaven’s structure and which fees go to buying and burning $LIGHT:

Note that all fees from launches categorised as Blocked will be sent to the $LIGHT flywheel address, buying and burning $LIGHT.

Fees vs Competitors

Since Heaven is both a launchpad and AMM, it must compete on fees with platforms from both sectors. When a launch on Heaven reaches a MC > 100k, its trading fees reduce significantly, as tokens launched on competitor launchpads would already be trading on an AMM with lower fees at this MC.

On the launchpad side, Heaven charges the same base fee as Pump.Fun and Bonk.Fun of 1%. However, Heaven has an additional 1% creator fee for creator coins and 0.1% creator fee for community coins.

On the AMM side, Heaven has a base fee of 0.25% for community coins, similar to its competitors. For creator coins, the trading fee is double at 0.5%. Note that the same creator fee rates still apply (1% for creator coins, 0.1% for community coins).

However, Heaven dedicates 100% of trading fees on its AMM to $LIGHT buybacks. In comparison, competitors give most of the trading fees to LPs, and only reserve a small portion to token buybacks. How does Heaven do this?

On conventional AMMs, LP fees add to the liquidity pool, thickening liquidity as cumulative trading volume increases. Thicker liquidity reduces the price impact of large trades. Since Heaven is a custom AMM, it sets the default LP : MC ratio slightly higher than Pump and Bonk, so LP fees to thicken liquidity are unnecessary. Instead, Heaven uses all the trading fees to buy $LIGHT, while charging the same amount of fees to traders as its competitors like Raydium and Pumpswap.

Current Revenue Metrics

Heaven is an extremely new product which has only been live for a few days. However, it has obtained considerable traction since launch, with over 1.5% of the $LIGHT supply burnt so far from 2 days of protocol revenue.

Comparing the 24h holder revenue of Heaven, Pump and Bonk, we get extremely attractive revenue metrics for $LIGHT, as seen below. The table also assumes that 100% of PumpFun revenue goes to $PUMP buybacks, which may not always be the case.

Since Heaven launched recently, revenue metrics may be inflated due to hype around the launch leading to a temporary spike in trading volume. However, many features of the platform have not been fully rolled out, and I expect many more projects to start launching on Heaven as the platform rolls out more features and stabilises.

Conclusion

Heaven combines two of the most profitable businesses on Solana, launchpads and AMMs, and directs all its revenue into its native token $LIGHT. While its base fee rates are similar to its competitors (launchpads or AMMs), Heaven maximises the revenue to $LIGHT holders through its custom AMM design which negates the need for LP fees. Since all protocol revenue is used to buy and burn $LIGHT, it outperforms all other launchpads and AMMs in holder revenue generation, especially AMMs which usually direct less than 20% of their fees to token buybacks.