Hotpot V3 48th Weekly Report

3 min readMar 15, 2022

Dear Hotpot fans，

Welcome to the 47th 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.

March 7 , 2022 to March 11, 2022

Data Section

As of last Friday, Hotpot’s Sets fee income on Ethereum totaled $12,870.56. Sets fees on Arbitrum accumulated to $11,028.83. Polygon’s Sets fee income accumulated to $112.18.

It can be seen from the figure that the fee for Ethereum’s Sets has not increased recently because the price slipped out of the position range. However, users do not need to worry, the Sets manager will always monitor the trend of price changes and choose the best time to adjust the position according to the principle of maximizing user profits.

Operation section

The ETH price is still in a relatively negative state recently, and some users wonder whether they should migrate the funds in Hotpot V2 to V3.

The suggestion we give is to not migrate for the time being. On the one hand, you can hold the currency (ETH is still on an upward trend in the long run); on the other hand, our team tested a new Sets on Polygon with different investment strategies. Verification takes time, please wait patiently for the good news.

In addition, many users will ask a question: “Will the stablecoin I invest be affected by the price of other tokens? — Of course it will.

The USDT or USDC deposited by the user will be converted into a reliable transaction target by the Sets manager within the transaction path specified by the smart contract, and then form a transaction pair, such as ETH-USDT. Therefore, the essence of depositing stablecoins into Hotpot is to invest in a portfolio of crypto assets. Therefore, the fluctuation of the currency price will directly affect the overall income.

“What is the annualized 50% deterministic income of the platform? Is this a fixed income?” Yes, the deterministic income is the fee income earned by the Sets manager for users through successful market making. As long as the prices at both ends of the trading pair are within the set position range, the user can always get the fee income.

To sum up, the recent low and sideways price of the currency has an impact on earnings, and some users may experience losses. However, the fee income has been increasing for a long time. Even if the currency price has been sideways, the fee income can gradually cover the loss. Once the currency price rebounds, the income will naturally return to positive faster and gain more growth.

As a professional Uniswap V3 market maker platform, Hotpot will always look for more “determined income” for everyone!