Hotpot Solution
Last updated
Last updated
To optimize and improve existing problems, Hotpot Finance aims to provide a high-yield, easy-to-invest, and secure platform.
1. Rewards Reinvestment
We maximize your rewards with non-lp loss. Hotpot Finance excels at making the best use of the rewards generated for providing liquidity, and later on, reinvesting them into different strategy pools to optimize rewards allocation.
Swap single token to LP tokens on our platform. Our calculator will swap your tokens automatically into two tokens and distribute them equally based on the liquidity pools you are in. When you are about to leave the pool, you can choose between withdrawing the original token you’d put in or withdrawing both tokens. What’s noteworthy here is that your assets have been stored in the smart contracts AT ALL TIMES without being put into other operations; namely, your staking rewards have always been compounded and thus maximized at a much faster rate.
3. Turbo Pools
For DeFi users, in addition to profiting by venturing into liquidity pools to obtain regular liquidity rewards, to minimize the scenarios where participants’ long term average returns turn disappointing, Hotpot Finance spices it up by designing an industry-leading Turbo Pools, keeping users’ returns not just higher than expected, but consistent.
Turbo Pools features multiple profiting models to maintain the HEAT in Hotpot’s decentralized pools.
(1) Advanced trading arbitrage in both centralized and decentralized exchanges
(2) Advanced Lending Strategy
(3) Market Making Strategy
By staking and participating in DAO governance, BCNT holders will have the opportunity to make a difference in future development of the protocol.
Hotpot Finance will be applicable in multichain and NFT markets with the purpose of providing distinguished institutional solutions, hedging & prediction derivatives, etc.
6.RAL Rating System (Risk+ APY+ Liquidity)
RAL is a risk assessment model that Hotpot is dedicated to developing. The composite indicator helps DeFi users define the risk assessment of the liquidity pools, where RISK, APY , and Liquidity are factored in to form this comprehensive rating system. Future on-chain public data checking is likely as well. After DeFi participants join in Hotpot, through the given 1-10 rating system, they can better comprehend the interrelations between the liquidity pools on the platform, serving as one of the major indicators for DeFi users to assess the risks involved.
The aforementioned 3 indicators are factored in RAL to form the 3 spectrums below, so the risk level(s) in different pools can be easily monitored after stacking them up as Lego blocks.
The criteria for each indicator are:
(1) Risk: BUSD/ USDT serves as the baseline value, 100; compared to other liquidity pools, it has the lowest risk. Others, such as CAKE/BNB, whose relative risk is its original criteria plus 50, namely, the absolute value of the biggest downfall percentage for the past year, multiplied by 100 and then plus 100.
(2) APY: Annual Percentage Yield, product(s) of the interest return(s)and its original capital(s) being compounded.
(3) Liquidity: assessed based on the Pancake Swap DeFi’s Total Value Locked in the pool.
*BUSD/ USDT Stablecoins pool serves as the baseline value, which is 100.
