When you are investing, you want to make the most of your Hunny Pot. In crypto, you either provide liquidity to an AMM, lend it to a money market, or deposit it in vaults with advanced strategies to try to bring the yield up.

Each option comes with its caveat.

Providing liquidity to an AMM forces you to split your provision between two tokens and you get exposed to impermanent loss, lending is safer but usually has a lower yield and the assets can be exposed to systematic attacks that can arise all your equity, and with vaults you deposit your trust in whoever is managing the strategy.

In the quest for higher yield, concentrated liquidity became ubiquitous in decentralized exchanges, but there is a tradeoff between concentrating the liquidity and the higher impermanent loss it may bring. Furthermore, it requires active management to keep the position earning fees, for which many people are not skilled or available. Certain protocols automate the allocation of liquidity, but it is still too soon to make conclusions on how effective they are.

At Hunny Pot, we take a different approach to increasing your yield. We share the liquidity between an AMM and a lending market so that you earn both ways.

For that to happen, we require the AMM to be as reliable as an oracle, and we did invent that!

Our next gen AMM boasts the following features:

• Dynamic concentrated liquidity following dynamic curves

• Single-sided deposits

• Price manipulation protection

• Built-in MEV protection

• Limited slippage

• Limit orders

Following that design, we can introduce the following features in the lending market :

• Isolated risk: Isolated pairs to prevent contagion

• Capital Efficiency: Loan-to-value ratios of up to 99%

• Permissionless market creation: any token can be lent or borrowed as long as it has liquidity created in the AMM

The last feature cannot be highlighted enough. What Uniswap did for swapping, we built it for lending, more on that in the next article.

And if we have a DEX and a lending market, why it can’t be the basis for more features? But let’s leave that to another time…

We’re happy to call Berachain home! We’re aligning our mainnet deployment with Berachain so we can be one of the first.

They are innovating, and so are we.