Overview
LEASE is an auction-managed AMM on Solana: a constant-product pool whose manager seat is auctioned without stop. The bots that farm your pool pay you rent first.
The design is the am-AMM from am-AMM: An Auction-Managed Automated Market Maker by Austin Adams, Ciamac C. Moallemi, Sara Reynolds and Dan Robinson (arXiv 2403.03367). It was designed by researchers from Columbia, Paradigm and Uniswap Labs, and runs on Ethereum through Bunni. LEASE is its first implementation on Solana. We did not invent it; we built it for Solana.
The problem it answers
In a normal pool, LPs earn the swap fee. Arbitrage and sniper bots take the price moves. When the price on other venues moves, the first bot to trade the pool back into line keeps the difference, and the LPs carry the loss. LPs glean what is left.
What LEASE changes
The right to run the pool is a seat. Anyone can bid for it by stating a rent per slot and prepaying it. Whoever holds the seat:
| Holder may | Limit |
|---|---|
| Set the swap fee every other trader pays | At most 3% (FEE_CAP_PPM = 30_000) |
| Keep every swap fee charged while it holds the seat | Fees are credited to its ledger |
| Swap through the pool with no fee | Only the seat holder |
In return it pays rent every slot from its deposit: 90% to the pool's LPs and 10% to a burn that buys LEASE and destroys it. Bots that would have taken the price moves for free now compete for the seat, and that competition is paid to the LPs as rent.
When nobody holds the seat, swaps pay a 1% fee and all of it stays in the pool for the LPs.
Who uses it
| Who | Why they come |
|---|---|
| LPs | Rent every slot on top of the pool's own growth, from the traders who used to take the edge for free |
| Bots and market makers | A seat that lets them trade first at zero fee and keep every fee, for a known rent |
| Traders | A normal pool; the fee is capped at 3% and changes are visible one slot ahead |
Status
The LEASE program is live on Solana mainnet at B1RohVSotqVA1oibU8pYSv719VZDM83hpD51JYebNeSM (Solana Explorer). The app at /app is live on mainnet: anyone can create a pool, add liquidity, bid for a seat and swap. LEASE the token does not exist yet, so until it does the burn share of rent waits in the burn vault.