AC Capital: Why did we invest in Honeypot Finance?

Source: AC Capital Research

Introduction

ZK and AI projects will gather at the Hackathon in 2023, and DeFi is no longer a development hotspot , however, Honeypot Finance stood out and won the award at the ETH-Beijing hackathon with Batch-A2MM. After that, it quickly took root in Berachain’s unique innovation soil and built the positive flywheel of Honeypot Finance from the product side and the user side. This article will give you an in-depth understanding of Honeypot Finance.

01 Berachain’s innovative soil

Berachain is an L1 public chain built on Cosmos SDK and compatible with EVM. It adopts an innovative new consensus mechanism - Proof of Liquidity (POL: Proof of Liquidity) and an innovative Tri-token three-token economic model.

Proof of Liquidity (POL: Proof of Liquidity): It is a brand-new consensus mechanism that uses liquidity providers, liquidity mining, Mechanisms such as liquidity proof and liquidity governance realize network liquidity, equity centralization and coordination between protocols and verifiers.

Tri-token three-token economic model:Berachain’s three-token model draws on the experience and lessons of many DeFi projects. Combining the token output of the public chain with liquidity creates a Ponzi structure with high liquidity and high capital efficiency.

Up to now, there have been more than 70 ecological projects deployed on Berachain. The Berachain ecosystem has not only attracted some EVM ecological projects, but also given birth to a number of native projects. With the recent launch of its Public test network "Artio", the total number of active addresses on the test network has risen to 8 million.

The soil for innovation, the enthusiasm of users, and the design of the Ponzi model, Berachain's unique governance reward mechanism are attracting more outstanding project parties to embrace Berachain.

02 Honeypot Finance's Flywheel

Standing on the innovative soil of Berachain, you can see that many DeFi projects are rushing to land on Berachain. Honeypot Finance found the pain points of DEX and created a positive flywheel for Honeypot Finance.

From the product side :Honeypot proposes innovations in four aspects based on the characteristics of the Berachain chain and the innovation of DEX:

• DreamPad:A launchpad with a built-in layer of trust (DAO) that is community-driven, deep-liquidity, and a fair launch mechanism (FTO) to keep users out of rat boxes, prevent developer dumps, and get instant access after launch Tradable liquidity.

• HelonDEX: An innovative (Batch-A2MM) trading protocol with low slippage and MEV resistance, which has won the award at the ETH-Shanghai hackathon, and HPOT DEX will bring higher liquidity efficiency and better trading experience.

• HiveNode: Deeply integrated with Berachain’s PoL consensus mechanism, the bootstrap chain consensus mechanism rewards liquidity from our products and simplifies the PoL mining process.

• DeFi-Hub: DreamPad, HelonDEX and HiveNode, the above three products together form the entire path of liquidity introduction, retention and incentive, promoting Honeypot Finance forward flywheel.  

From the user side:Honeypot uses DreamPad’s fair launch as a liquidity entry, launching the completed token pairs It can be directly injected into HelonDEX for trading and providing liquidity, and finally obtains Proof of Liquidity (PoL) incentives through HiveNode nodes. Act as a flywheel to maximize user benefits.  

03 Honeypot Finance Team and Ecosystem

Honeypot Finance team are all senior practitioners from the encryption industry. The project CEO and CTO are the organizers of Berachain's largest developer community. Other main members of the project team come from developers of projects such as Trisolaris, Tencent and IoTex.

Currently, Honeypot Finance ecosystem project partners include: Axelar, Chainlink, etc. With the opening of the future test network, we look forward to more projects joining the Honeypot Finance ecosystem.

04 Summary

In summary, we It is believed that the Honeypot Finance team is a team with mature product delivery capabilities, BD capabilities and operational capabilities. Team members have a deep and unique understanding of Berachain and DEX innovation, and look forward to Honeypot Finance bringing a new DeFi user experience.