AC Capital:Why we invested in Honeypot Finance

AC CapitalFeb 24, 2024
AC Capital:Why we invested in Honeypot Finance

Author: 0xDragon888


In 2023, hackathons were flooded with ZK and AI projects, signaling a shift away from DeFi as the primary focus 

of development. Nevertheless, Honeypot Finance shone brightly at the ETH-Beijing hackathon with its Batch-A2MM, swiftly embedding itself in the fertile and innovative ecosystem of Berachain. Through its dual emphasis on product refinement and user engagement, Honeypot Finance is fostering a Flywheel Effect. This article aims to provide an in-depth exploration of Honeypot Finance.

Berachain's Innovative Soil

Berachain is an L1 public chain built on the Cosmos SDK and compatible with EVM, adopting an innovative consensus mechanism - Proof of Liquidity (POL) and a tri-token economic model. 

The Proof of Liquidity (POL) is a new consensus mechanism that achieves network liquidity, equity centralization, and coordination between protocols and validators through mechanisms such as liquidity providers, liquidity mining, liquidity proof, and liquidity governance. 

The tri-token economic model combines the token output of the public chain with liquidity, creating a high liquidity and high capital efficiency Ponzi structure. 

More than 70 ecosystem projects have been deployed on Berachain, attracting both EVM ecosystem projects and a batch of native projects. With the recent launch of its public testnet 'Artio,' the total active addresses on the testnet have risen to 8 million. 

The innovative soil, enthusiastic users, and Ponzi model design, along with Berachain's unique governance reward mechanism, are attracting more excellent projects to embrace Berachain.

Honeypot Finance's Flywheel

Amidst the innovative landscape of Berachain, a multitude of DeFi projects are converging. Yet, Honeypot Finance distinguishes itself by addressing the pain points of decentralized exchanges (DEXs) and constructing its own virtuous cycle.

Product design: Honeypot leverages the characteristics of the Berachain chain and innovative aspects of DEXs to propose four areas of innovation: 

  • DreamPad: a launchpad with an embedded trust layer (DAO) that balances community drive, deep liquidity, and a fair launch mechanism (FTO), protecting users from pump and dump schemes and preventing developers from selling off, while immediately obtaining tradable liquidity after launch.
  • HelonDEX: a trading protocol with low slippage and MEV resistance (Batch-A2MM), has been innovatively awarded at the ETH-Shanghai hackathon, and HPOT DEX will bring higher liquidity efficiency and a better trading experience. 
  • HiveNode: deeply integrates with Berachain's PoL consensus mechanism, guiding consensus mechanism rewards from our product's liquidity and simplifying the PoL mining process. 
  • DeFi-Hub: DreamPad, HelonDEX, and HiveNode, these three products together form a complete path for the introduction, retention, and incentivization of liquidity, driving Honeypot Finance's positive flywheel.

User engagement: Honeypot uses DreamPad's fair launch as the entry point for liquidity, and the launched token pairs can be directly injected into HelonDEX for trading and liquidity provision, and eventually get the incentive of Proof of Liquidity (PoL) through the HiveNode node. This serves as a flywheel to maximize user revenue.

3.Honeypot Finance Team and Ecosystem

The Honeypot Finance team consists of veterans in the crypto industry, with the project's CEO and CTO being organizers of Berachain's largest developer community, and other key team members coming from developers of projects like Trisolaris, Tencent, and IoTex. 

Currently, the ecosystem partners of Honeypot Finance include Axelar, Chainlink, and others. As the future testnet opens up, more projects are expected to join the Honeypot Finance ecosystem.


In summary, we believe that the Honeypot Finance team can deliver mature products, business development, and operational skills. Team members have a profound and unique understanding of Berachain and DEX innovation, and we look forward to Honeypot Finance bringing a new DeFi user experience.


This article is for informational purposes only. It is not offered or intended to be used as investment or other advice.

Lastest information

see all