💱Honeypot DEX
Honeypot Finance delivers a comprehensive DeFi experience to further incentivize our community. Built using the Algebra Integral v1.2 tech stack unlocks the modular composability approach alongside enhanced incentives and a seamless user experience.
Modular Concentrated Liquidity Experience
Algebra Integral underpins our Honeypot DEX, offering a robust and customizable concentrated liquidity framework. This foundation ensures efficient liquidity management and optimal trading conditions. Below are the customized unique features:
Plugins Concept
A plugin is a smart contract that connects to a Pool contract, expanding its functionality through hooks. Hooks are triggered before or after key pool events (e.g., pool initialization, minting or burning liquidity, swaps, and flash loans). This mechanism allows plugins and pools to exchange information, enabling advanced features in the Pot-Wasabee DEX including:
TWAP Oracle: provides access to historical price and volatility data.
Dynamic Fee: one major advantage of the Algebra-based DEX is the dynamic fee structure. By using TWAP Oracle data on price changes, a plugin calculates the fee based on the volatility of each trading pair.
Farming: the current farming implementation utilizes a Virtual Pool that stores information about the liquidity and state of the original Pool. This enables rewards distribution to liquidity providers in a flexible and efficient manner.
Security: this hook mechanism governs three possible pool statuses: ENABLED, DISABLED (all hook operations are disabled), and BURN_ONLY (only liquidity removal is allowed). This security layer helps protect against malicious activities and ensures greater control over the pool.
Flash Loans
The new DEX allows borrowing tokens from pools up to the total pool balance. Flash loan fees (and any excess tokens returned in the callback) are distributed to active liquidity providers. If no active liquidity exists at the time of a flash loan, fees accrue to the first liquidity positions activated thereafter.
It is important to note that, not only active liquidity is available to receive flash loans, but the entire token balance available to the pool.
Flash loans utilize a callback mechanism. If you implement a contract that leverages Algebra Integral’s flash loans, ensure the contract triggering the callback is indeed the expected Algebra Integral pool
Incentivization: Sustainable Engagement Loop Beyond Traditional TVL Emisisons
Through our modular approach and customizable plugins, we can offer both blue chip and and long-tail assets enhanced incentives and support. A new and improved m3m3 staking resolution will be introduced, supporting both single-token staking and LP staking. This system integrates seamlessly with our behaviour-driven incentives model, giving stakers the opportunity to earn outsized rewards for the on-chain activity.
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