Hotpot takes you to play Uniswap V3 in one click!

5 min readDec 8, 2021

Summary

In May of this year, Uniswap has been upgraded to the V3 version and has become the number one decentralized exchange in terms of transaction volume and number of users.

Although Univ3 can indeed increase earnings, its liquidity-focused feature makes market makers’ impermanent loss risk greater and increases the operational difficulty for investors who lack the necessary financial knowledge and technical means.

Therefore, the market urgently needs Uniswap V3 market makers with professional capabilities to help individual users better provide Uniswap v3 with liquidity.

Fortunately, there are already more mature Uniswap V3 professional market-making platforms, such as Hotpot.

About Hotpot

Hotpot Funds (Hotpot for short), a professional market maker platform of Uniswap v3, it helps users manage liquid pool investments. Hotpot V2 has been online since the end of July 2021. Until the end of November, the rate of return is nearly 24%, and the average monthly return is 6%.

Its operating mechanism is also easy to understand: investors only need to invest any type of digital asset (ETH/USDC/USDT) into Hotpot’s fund pool contract.

The fund manager is responsible for the fixed investment of the funds in the contract into the Uniswap V3 liquidity pool within the range set by the code, and adjusts the liquidity position according to market conditions. Fund managers have no right to transfer any assets in the fund pool, and user assets are still under their control.

Hotpot investment operation

Open the official website hotpot.fund. It should be noted that all the returns presented by Hotpot are not the platform’s estimated earnings APR, but the real earnings data of users.

Click Hotpot v2

After entering the investment page, the first thing we need to do is to link our Ethereum wallet address. Metamask, Tokenpoket, Imtoken and Math Wallet are all acceptable.

Presently there are 4 public fund pools in Hotpot and two fund manager teams, namely White Belly and Beef Tendon. The two teams have different investment strategies. It is recommended that novices choose the fund pool managed by White Belly to obtain more stable returns.

Taking USDT as an example, before investing funds for the first time, the wallet needs to authorize the fund pool contract once and pay a small gas fee. After the authorization is successful, the original “approve” will become “Deposit”.

Now we can enter the amount of USDT we want to invest, and then click “Deposit”, the payment transaction gas can be successfully deposited. If you want to withdraw the investment, just do “withdraw” in the same operation interface.

Presently, Hotpot can bring to users the annualized fee income that exceeds 50%. However, the platform will charge 20% of the user’s profit. Among them, 10% is used to cover the operating cost of fund managers to adjust positions, and the other 10% is used to repurchase and destroy platform tokens HPT, which makes the value of HPT continue to rise under the deflation mechanism.

Hotpot Query

During the investment period, if you wish to know the account income data and the investment operations of the fund manager, you can click the [Query] button at the top of the page.

In the sidebar we can see the categories of “Home”, “Funs” and “Managment”.

Click [Home], users can enter their account address in the top search box to view income data and operation records. The graph below the search box represents the data performance of all fund pools in different time periods.

In [Top address], you can see a list of all investors’ inputs and returns. For each investment address, you can click to see the present value curve, fee-yield curve, operation details and on-chain records.

Next, click on [Funds] and click on any fund pool to view details. Take USDT as an example:

Click on [more] in [Liquidity Pool] to see the specific price position operations of the fund manager

The red area is the fund’s position, and the blue area is the liquidity distribution of the entire USDT-ETH trading pair. It can be clearly seen from the figure that the current price is within the set range, which shows that the market making is successful and effective, and Hotpot is earning sweet fee-yield income for users.

Click on the “Fund Manager” section, you can see all operations and transaction hashes of the fund manager on the fund pool, everything is open and transparent!