Revenue Model for Instadapp

[lukemulks]

FWIW, would suggest keeping the revenue model as simple and frictionless as possible.

Stepping back, the broad appeal for InstaDapp (from my PoV), is around:

• Variety and range of features and functions
• Push-button recipes
• Added-value protection (Automation)
• Refinance

Looking at going after a broader cohort of users, InstaDapp will likely continue to excel with intuitive UX/UI, to get to a broader range of users.

Some care into applying fees strategically may result in some solid growth hacks.

For example:

InstaDapp applies focus to charging fees on complex strategies, refinancing across protocols, and on polygon migrations.

InstaDapp charges fees on swaps within complex strategies.

InstaDapp reduces or removes fees on simple asset:asset swaps (top level in DSA); introduce the very competitive simple Swap fees in-market, while taking the fee on 95% of Swaps thru complex transactions. May discover that removing simple swap fee burden results in better INST liquidity, and more initial experimentation from new users that are less confident with complex strategies. Simple swaps may begin to take up more of the swap transactions, in addition to the already high volume of swaps in complex strategies.

Would also suggest, if possible, waiving fees for “safety features” (vault automation).

New users that see 1) lower cost simple swaps and 2) InstaDapp aligning toward safety features that they’ve introduced to market (automation), this becomes a scenario where new users feel more comfortable learning as they go, with InstaDapp.

With a user fee model, InstaDapp can also provide INST holders with reduced fees across the board, proportionate to INST holdings.

[Andre]

I really think this should be a top priority now while we’re at #2 on DeFi Pulse. Any updates on this front?

[Duo]

Hey everyone, I put together a proposal to generate revenue for the DAO by adding a fee to swaps. It needs input and a lookover.

Proposal to Add Fees to Swaps

Summary After participating in the popular revenue thread, we’ve put together a proposal to implement fees, taking into consideration the varied opinions in the community. This proposal is to add fees on all swaps. Proposal We propose a fee placed on all swaps, this could come in the form of a flat fee (.05% for example) or the fees being separate for stablecoin swaps and non-stablecoin swaps ( Eg:- stable pairs: 0.01%, 0.02%, 0.03%, 0.04%, etc & non-stable pairs 0.1%, 0.2%, 0.3%, 0.4% etc.).…

[fordacious]

Adding some thoughts here that I was ideating on in the Discord channel on options for revenue and creating a virtuous cycle of value.

A premier feature of Instadapp that makes it an attractive platform is its abstract DeFi macros. e.g. refinancing across protocols, swapping collateral etc…

Allowing user defined macros where the Dev and DAO (INST holders) get a share of revenue from these macros may be a viable way to leverage this feature to incentivize devs to increase the value prop of the system.

In terms of revenue, I believe we should aim for creating tokenomics that incentivize value accrual to the protocol by making it more attractive to users.

On that note, perhaps it makes sense to scale users (or capital value as a proxy) before revenue by making the platform useful and indispensable. Revenue can then follow easier.

[DeFi_Dad]

No doubt, I as a user would pay fees in a heartbeat given the utility of Instapp.

Charge me 0.25% for:

• Swaps
• Any recipe with flashloans
• Migrating a position within Instadapp (Maker<>Compound<>Aave)

Or go bold and charge a streaming fee, something like: 0.01% annually as a streaming fee

If you’re not making back that 0.01% on Instadapp, you’re ngmi.

[miscao]

This is an interesting option as well. Sort of like annual fees paid to be in an index or mutual fund. And not to mention 0.01% would be a leader in the space of low fees!

One thing to figure out is how to collect that fee if the user is passive and not executing txns within the dapp.

[Neal]

Hi @DeFi_Dad,

Welcome to the Instadapp community, I hope you’ll be a frequent visitor and contributor here.

The revenue model topic has received more interest than any other, there are obviously so many options to consider in trying to raise revenue and these are early Defi days.

In your opinion, are there any revenue models around the traps that have impressed you or seem to be working that the Instadapp community should be made aware of?

[samyak]

Appreciate your thoughts here!