An article to understand the hot pot fund: to provide better liquidity for Uni V3!
Hotpot Fund V2 is a professional Uniswap V3 market maker platform consisting of a set of smart contracts deployed on Ethereum. The platform aims to allow investors interested in DeFi to better provide liquidity for Uniswap V3 and earn multiple sweet benefits from it.
Ecological background
In 2019, Uniswap stood out with an innovative model of “x*y=K”, attracting a large number of users to settle in, with a peak lock volume of more than 15 billion, ranking first in DeFI.
In May 2021, Uniswap launched the highly anticipated UniswapV3 protocol. On the one hand, the significant reduction in transaction slippage will make large-value transactions become the norm in Uni V3.
But on the other hand, the core feature of “focusing on liquidity” shuts out many non-professional LPs. Because users not only need to pay attention to price changes at all times, but also need to rely on professional knowledge and experience to grasp the timing of position adjustments. Once the price slides out of the set position range, it will suffer trading losses. The whole process is time-consuming and labor-intensive and it is difficult to achieve the desired profit.
As stated in the official Uniswap white paper, “In the future, we may have more and more professional market makers.” In order to help ordinary users better provide Uniswap V3 with liquidity and earn long-term sweet income, the hot pot fund (below Referred to as Hotpot) came into being.
way of participation
Hotpot has launched the V1 version since February 2021, focusing on helping users provide liquidity for Uniswap V2. At the end of July, the Hotpot V2 version was launched to help users better invest in Uniswap V3.
In Hotpot V2, investors only need to deposit a digital asset (ETH/USDC/USDT) into the public fund pool to free their hands and wait for income, and leave the position adjustment to a professional fund manager team to do.
User access guide click on the video link:
Youtube
https://www.youtube.com/channel/UCM1MLg4QROH7JIob141TucA
Since the public fund pool exists in the form of smart contracts, no one except the investor himself has the right to transfer user assets. Smart contracts are audited by professional and authoritative auditing companies, so users do not need to worry about the safety of funds. Even if there is no web front-end, users can still call the smart contract on the chain to deposit and withdraw funds on their own!
User benefits
The income that users can obtain from the hot pot fund is divided into two types: fund income + platform token “HPT” income.
Among them, the fund income is composed of fee income + currency price increase income; HPT income is composed of currency price increase income and block reward income (not yet opened).
In addition, the hot pot fund team will charge 20% of the fund management fee based on the user’s income, of which 10% will be used to cover the investment cost of the fund manager, and the other 10% will be used to repurchase and destroy HPT to provide value support for HPT.
Strictly speaking, the platform only leaves 10% revenue space, and this part of the revenue will be released as user benefits in the future, so stay tuned!
future development
Hotpot V2, as a professional Uniswap V3 market maker, has injected fresh blood into the DeFi track with its innovative model of decentralized finance
It will not only make it easier for investors in traditional industries to recognize and enter the DeFi world, we believe that in the near future, Hotpot and Uniswap will shine new light in the process of complementing each other!
