🥥Custom Hook

The Dreampad custom hook is designed to offer maximum flexibility, accommodating various project requirements and investor demands. It also expand the range of assets that can be launched on chain.

Below are some standard official hooks that Dreampad provides. We used a modular development approach to create the custom hook, allowing projects to use multiple custom hooks simultaneously to support their launch requirements. In addition to these, we encourage our community developers to create their own hooks using their creativity. Once your hook is merged into the official collection, you will be entitled to receive token incentives from our contributor program.

Vesting Hook

The vesting hook is one of the official hooks we provide. Projects that use this hook at launch can set up a predefined vesting schedule, allowing a percentage of the LP to be released linearly over time.

Remove && Burn Liquidity Hook

The Remove & Burn Liquidity hook is another official hook we provide. When launching via the FTO model, projects can use this hook to burn their own tokens when they remove liquidity from the pool. This hook can also be combined with the vesting hook. The objective of the remove && burn liquidity hook is, By reducing the token supply, the Remove & Burn Liquidity hook creates strong buying power for the token.

Future Option hook

The design of the “future option” contracts on tokens enables traders to speculate on the future price of tokens, including those in circulation and those not yet launched.

These futures tokens are redeemable 1:1 for the underlying token, and provide a way for founders, early investors and large holders to manage exposure and liquidity.

The contracts can feature set maturity dates (when the token is “expired” and auto redeemable 1:1 for the underlying token) and customizable criteria (details tbc) to meet funding / trading strategy needs.

The three main use cases for such contracts are:

  1. Liquidity for Founders: Founders can raise funds by selling futures contracts on their tokens through Dreampad, securing liquidity before the actual token generation event (TGE).

  2. Exposure Management: Large holders or "whales" can reduce exposure to specific projects by offloading tokens (potentially at a reduced rate) through futures contracts with future expiry dates, limiting the impact on the spot market price.

  3. Trader Speculation: Traders can speculate on the future value of tokens, especially those awaiting their Token Generation Event (TGE), aiming to profit from anticipated price movements.

Why Design of Custom Hook promote Berachain's Proof of Liquidity?

Imagine that the initial buying power from users on Berachain is a X at beginning and X remains somewhat stable within a certain period of time. The on-chain token supply needs to be well-balanced to maintain the chain's stability. If the buying power, X, is not fully utilized due to a low token supply, users might lose interest because of limited activities to engage with. this essentially reduce the buying power X. Conversely, if the token supply is too high, the buying power cannot support the oversupply, leading to a potential crash or sustained weakness in token price and which would also reduce the buying power X.

The Remove & Burn and Vesting hooks are excellent tools to adjust the token supply. These hooks help maintain a balance and preserving user interest and token value.

The design of future hooks can be seen as derivatives of the asset. Users can trade these derivatives and use them to earn interest, effectively leveraging the money multiplier.

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