Hotpot V3 42th Weekly Report
Dear Hotpot fans，
Welcome to the 42th weekly report of the Hotpot Sets. We will continue to output the project’s operation and technology development progress for you, hoping to help you understand the Uniswap V3 platform in DeFi filed, and we wish providing you the first-hand market dynamics and better Defi investment decisions.
December 27, 2021 to January 9, 2022
As of last Saturday, the total current value of Sets on the Ethereum mainnet was $631,283, and the accumulated fee income for a week was $7,331. The total current value of Sets on the Arbitrum mainnet is $47,941, and the weekly cumulative fee income is $842.
From the figure, it is not difficult to find that the yield of Set is negative at this stage, and many users are worried about this. In fact, you don’t need to worry too much, the retracement of the currency price last week will indeed affect the income. But the more important reason is that Hotpot V3 was launched on 12.31, and the new entrants accumulated less fee income in a short period of time, and the fluctuation of the currency price affected the total income. As time goes on and the fee income increases, Sets will enhance its anti-risk ability and the short-term currency price will no longer significantly affect the total income of the account.
In addition, some users will ask: “The market environment is starting to become negative, should I continue to invest in Hotpot?”
In fact, from the standpoint of medium and long-termism, the rise and fall of the currency price is not the best basis for everyone to judge whether to invest in Hotpot. What Hotpot likes most as a market maker is market volatility, because it can bring higher liquidity, which means that we can help users earn more fees. So Hotpot is a good choice no matter the time of day.
Hotpot V3 was successfully launched on December 31, 2021. In addition to the positive response from community users, what is even more surprising is that EMO Capital, a well-known crypto asset investment institution, announced its official entry into Hotpot!
On January 1, EMO Capital invested 100,000 USDC at a time to create a 2-year Set named “Beef Tendon”.
Different from White Belly’s investment philosophy, Beef Tendon is a USDC standard Set with an “active currency holding + LP” strategy. The main income comes from holding token appreciation and LP liquid market making fees, with medium-term growth, long-term stable style, and pursuit of excess returns.
We are very much looking forward to Beef Tendon’s achievements, and we also hope that more Managers can join us !
Many community users have completed the migration this week, but they are still not familiar with the Sets interface of Hotpot V3. We use a picture to give you a clearer and more detailed explanation.
As shown in the figure above, users will see the details of each Set after entering the Investment Hotpot V3 investment interface. which contains
1. Local currency icon + Set name
2. Total investment, total present value, real-time total return
3.Manager’s investment strategy
Benchmark rate of return: Indicates that the Manager and the platform can only share when the user’s income reaches a specified proportion. Here White Belly is set to 0, which means that as long as the user has profit, the Manager and the platform can share it, and if there is no profit, it cannot be divided;
Lock-up period: users can withdraw funds at a specified time after depositing funds. If the value is 0, it means deposit and withdrawal at any time;
Share ratio: It consists of two parts: [Platform 5% + ManagerX%]. For example, the White Belly share parameter is 20%, which means that if the user withdraws funds when generating income, the Manager will share 15%, and the other 5% will be collected by the platform for repurchase and burn HPT.
5. Set asset components
After the user invests in a single currency, the Manager will hold some or all of the single currency according to the investment strategy, and then convert another part of the single currency into the investment target through the transaction path defined by the contract, thereby forming different transaction Pairs . This is also the reason why even if some users invest in stable coins, there will still be gains from currency price increases.
The analysis of Hotpot V3 in this issue is here. If you have any other questions, please be sure to consult an advisor carefully before investing. (Wechat: Cadence-mail ; Telegram: @hotpotsets)
In order to make it easier for everyone to query account assets, developers are currently optimizing the [Query] function of Hotpot V3.
Let the professionals handle professional issues.