What Makes the Hotpot Fund Stand out in the Fad of DeFi?

Hotpot Sets
4 min readMar 22, 2021

It’s hard to imagine that Defi’s popularity continues from the last June to now in such a fast-paced crypto market. As a symbol of the new future of finance, DeFi ecosystem witnesses many projects mushrooming and growing rapidly. UNI solves the problem of decentralized transactions, which can be achieved without the guarantee of a centralized organization in a completely trustworthy situation, and DAI solves the problem of stablecoins backed by collateral assets……Currently Defi has a global market capitalization of more than $80 billion.

With the continuous boom of the DeFi market in 2021, in addition to the leading projects on current major tracks, a large number of potential new products also emerge like a flood, such as Zapper, the aggregation management application, Deri, the dark horse on the derivatives track, and the first DeFi fund project, the Hotpot Fund. In terms of popularity, the Hotpot Fund attracts most attention,because it’s the first decentralized on-chain fund product.

The Hotpot Fund is a transparent fund project that operates on a public blockchain and consists of a set of smart contracts deployed on Ethereum. The Hotpot Fund can provide a channel to invest in DeFi projects for users lacking the professional knowledge of DeFi. Users can deposit their funds into the smart contract of the Hotpot Fund so that professional fund managers will make investment to help users earn profits.

At present, the first phase of the Hotpot Fund has been officially launched on March 11th, and users can make investment with three stablecoins, including USDT, USDC and DAI. The Hotpot Fund raised over 2 million yuan on the first day of launching, and still attracted the attention of DeFi enthusiasts to participate. The basic operation mode of the Hotpot Fund is to deposit money in a smart contract of the chain, which will be managed by a professional team to obtain profits. Investors can deposit and withdraw at any time without worrying about the safety of the principal. In addition, as the Hotpot Fund is based on Ethereum, it is highly transparent. Every move of the fund manager is transparent and visible, and some relevant data can be queried on Etherscan at any time.

Overall, the Hotpot Fund can stand out in the blossom of the DeFi market because it is simple to participate in, transparent and open, available for deposit and withdrawal at any time and managed by the professional team, which effectively meet the actual needs of emerging investors — convenient participation and easy profit. For users who want to invest in DeFi, they need to fully understand Defi concept and logic, such as constant product, automatic market maker, and impermanent loss. If the user wants to participate in investment, he needs to make a lot of in-depth data analysis, and distinguish good projects from the mixed market, which is difficult for ordinary crypto players to have full control of the investment results.

In terms of the security that everyone concerns, the Hotpot Fund is devoted to establishing a multidimensional security protection system. At present, the Hotpot Fund has passed the audit of Knownsec on the smart contract, and will cooperate with internationally renowned technical security institutions to strengthen the code audit protection. The technical team of the Hotpot Fund is led by Richard Du, a well-known technical expert, to ensure the security to the maximum extent.

On the one hand, the fund manager can only make portfolio strategies within the scope set by the code, make investment within the selected tokens and has no right to transfer any assets of the fund pool. On the other hand, the Hotpot Fund professional team will make profound and detailed research about the project before investment. The fund manager is responsible for investing public funds into Uniswap liquidity pool for earnings and all moves are based on the principle of “Principal is the priority”.

Besides, the popularity of DeFi The Hotpot Fund has caused Ethereum congestion and high GAS fees for a while, but the Hotpot Fund reduces a lot of 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 3/4, which is a huge amount. The GAS of the following additional investment is paid by the fund manager, saving a lot of GAS for users.

Being able to stand out takes a long time. The Hotpot Fund is formed from the above different dimensions to be able to stand out and become a black horse in DeFi. Under the innovative mode, we firmly believe that the Hotpot Fund is bound to achieve success, and has a broad and long-term development prospect!



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