How the Hotpot Fund opens a new value system in the fad of DeFi

Hotpot Sets
5 min readFeb 26, 2021


According to Coingecko on Feb. 3rd, the total market value of DeFi has reached $56 billion, increasing more than 80 times from $690 million at the beginning of January, 2020. The total borrowings of DeFi’s lending platforms have come up to $5.33 billion, and the total locked value amounts to $31.56 billion. Uniswap, the leader of decentralized exchanges, has overtaken those top centralized exchanges in the trading volume, becoming their most feared rival.

A series of data proves how hot the market is. DeFi has become the third market-proven application scenario after Ethereum. Since June 2020, in addition to the previous DEFI products such as Uniswap, Compound, AAVE went viral, we have also seen the emergence and explosive development of a large number of new DeFi products such as YFI, YFII, AMPL, Curve, Sushiswap, and the innovative development of combined DeFi products will gradually usher in a burst period, the momentum of cross-chain, storage, and NFT development is very strong.

With more and more assets on the chain, DeFi is expected to remain one of the most interesting and investable areas in the crypto industry in 2021, and the Lego play of DeFi will provide more unique experiences for investors. Among many emerging quality projects, the Hotpot Fund is highly anticipated and attracts a lot attention.

The Hotpot Fund is a decentralized fund program that combines liquidity returns and yield farming, which is the first time that the fund model is applied in DeFi ecosystem. Hotpot Fund effectively lowers the threshold of participation, and can provide a convenient, easy-to-use and safe investment entrance of DeFi for users who lack investment expertise in DEFI, and help them earn diversified asset returns. It is reported that the first batch of funds have 4 varieties, respectively ETH, DAI, USDC, USDT.

As a powerful supplement to the mainstream centralized finance, DeFi is an inevitable trend of the evolution of technical finance. Meanwhile, under the sudden wealth effect brought by yield farming, more and more users start to participate in DeFi investment. But what cannot be ignored is that although DeFi is heating up, it is still at an early period of exploration, and there are a lot of problems to be solved, such as DEFI is becoming the “disaster area” under hacker attacks, a large number of new jaggy projects are flooding in, and too much obscure professional knowledge of DeFi is difficult for new participants to screen……

Against this background, the birth of Hotpot Fund definitely provides a new model of value investment to users who look good on DeFi. As a pioneering DeFi project of fund model, the Hotpot Fund team consists of dozens of experts with professional financial knowledge and blockchain technicians all over the world. Compared with the new jaggy projects in the market, the Hotpot Fund is undoubtedly a more reliable, safe and professional choice.

In terms of the income that everyone is most concerned about, compared with general DeFi projects, the Hotpot Fund includes fund income, mining income and arbitrage income, Fund income is the basic income of Hotpot Fund, and obtained once the fund is deposited. Users who participate in staking can get mining income. Through staking, users can obtain HPT tokens issued by the project. All income of Hotpot Fund belongs to HPT holders, and meanwhile, part of the income of will be used in the buyback of HPT trading pairs on Uniswap, to support the rise in the value of HPT tokens.

According to CipherTrace, cryptocurrency hacks dropped by about 57 % in 2020, while DeFi-targeted incidents surged. DeFi, as an open-source protocol, will inevitably be hacked. In terms of the impact, huge losses are caused. For example, $281m was stolen from Kucoin, a centralised exchange, which was the biggest one in 2020. Besides, COVER, a new star in DeFi insurance, was attacked twice by hackers using code vulnerabilities in a short period, resulting in the additional issuance of more than one trillion tokens and the price of COVER plummeted by more than 99% from $800.

The crypto space upholds the principle of Code is Law. Generally, a quality project has the process of smart contract audit. Hotpot Fund is no exception. It is said that the smart contract of Hotpot Fund has passed the security audit of Knownsec and will partner with internationally renowned technical security institutions to strengthen the code audit protection and ensure the security to the maximum extent from the source.

In addition, the Hotpot Fund manager is responsible for the investment and will invest into the liquidity pools, whose security have been tested, to obtain earnings on Uniswap. At the same time, the fund manager can only carry out strategy combination and investment within the scope set by the code. The fund management team only invests in well-researched high-quality projects, and ensure the security of users’ principal will be its first priority. Considering that the fund pools exist in the form of smart contracts, users can participate through simple “deposit” and “withdrawal”, and the funds are completely under their own control, available for trading at any time.

Ethereum is the main platform of DeFi, but the Gas fee of Ethereum network is so high, usually tens or hundreds RMB of ETH. One of the important advantages of the Hotpot Fund is that it reduces Gas consumption for users by pooling funds and making investment altogether. Let’s take one LP holding two Uniswap trading pairs as an example: if this user trades by himself, at least two swaps are required, and the total Gas consumption is about 600,000, while through the Hotpot Fund, the Gas consumption is about 150,000, saving by ¾, which is a huge amount.

Since 2020, due to the continuous spread of the pandemic, the global real economy has been hit hardly. There is an increasing number of investors shifting their focus to cryptocurrency. With the expansion of global consensus, the price of BTC and ETH has soared successively, and Bitcoin has reached $40,000 for a time. On the other side, DeFi ecosystem flourishes, showing the transformative power of blockchain to everyone. The innovative play brought by Hotpot Fund is expected to become an important energy to ignite the market. Let’s wait and see how it goes!

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