UNI and SUSHI hit new highs, how to choose from DeFi projects in 2021?
According to the recent market data, mainstream tokens, such as BTC, ETH are faced with the pullback, while DeFi sector continues to show a rising momentum: UNI, the DEX leader increases more than 57%, while Sushi up over 26% and CRV up over 12%.
DeFi’s continued popularity has led to the emergence of many new projects, even overshadowing Bitcoin and Ethereum. For example, the price of YFI rose from a few hundred to nearly 30 thousand, even outpacing Bitcoin for some time. UNI grew into the top 10 crypto in just a few months, and became the real “hot cake” in the market.
The concept of “decentralized finance” appeared in 2019 first, but 2020 is considered as the first year of DeFi, and 2021 is expected to witness the boom of DeFi innovations, with the hot sectors including cross-chain, storage, NFT, fund, etc. On March 1st, the highly anticipated decentralized fund project — Hotpot Fund was launched. It is the first time to integrate fund model into the DeFi, and this combination is regarded as the most potential DeFi track.
There are a large number of DeFi projects in the market and the market is changing rapidly. How to distinguish from those various projects? Analysts believe that three important points need to be taken into account when choosing the DeFi project: convenience, safety and profitability. Let’s look at the Hotpot fund from these three points:
The Hotpot fund is a transparent fund project operating on the public blockchain, which is composed of a set of smart contracts deployed on Ethereum, with the characteristics of security, transparency, stability and openness. Through the Hotpot fund, even the new users with little knowledge about DeFi can easily participate in DeFi investment and earn income. The investment funds are managed by the professional fund managers who will help users maximize their income. At present, the first phase provides three stablecoin investment funds for investors, including USDT, USDC and DAI. It is reported that the Hotpot Fund has raised more than one million dollars on its first day of launching. Low threshold and easy to participate are the core features of the Hotpot Fund that is able to cover a large number of users.
In the past year, DeFi’s code vulnerabilities and P2P risks have frequently appeared, and the security of the DeFi project has been of great concern. At present, code audit is an important requirement for being an outstanding and trustworthy DeFi project. It is said that the Hotpot Fund has established a partnership with Knownsec, a well-known security audit company in blockchain, conducted strict audit of all smart contracts and will cooperate with internationally renowned technical security institutions to strengthen the code audit protection and build a leading security protection system. The technical team of the Hotpot Fund is led by Richard Du, a well-known technical expert. All the core members have many years of experiences.
In terms of income, in the context of the continued rise of the market, DeFi has allowed many investors to earn income directly. The Hotpot Fund brings a new, diversified way of earning. At present, 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. The Hotpot Fund invests in the most reliable trading pairs of Uniswap among more than 20, 000 ones. The Hotpot Fund starts mining HPT (the native token of Hotpot Fund) to provide users with some additional mining returns. All income generated by the Hotpot Fund belongs to the HPT holders, so HPT has a clear value support.
Arbitrage returns, slightly more complex, needs to be obtained with certain knowledge and coding ability. First of all, the HPT rising is achieved by burning HPT. Income will be generated when the HPT pairs are traded on Uniswap. All of these income will be used to purchase HPT on Uniswap, then the HPT will be burned. The whole process is completed through a controller contract, and the fund generates income when users withdraw. Whenever users withdraw, HPT will be bought and then burned, resulting in an imbalance in the price of several trading pairs. Advanced players can take advantage of this opportunity to arbitrage among several trading pairs: buying HPT at a low price, and then selling when it goes up.
In the fad of DeFi, the Hotpot Fund is fundamentally solving the difficult problems such as participation inconvenience and high investment risks. In the future, the Hotpot Fund will continue to carry out technical innovation and uphold the idea of putting the customer first, in a way to build its own unique value advantage, and bring more opportunities for users.
