Honeypot Finance Set To Power Liquid DeFi Markets From Day 1

Ever since the inception of DeFi, dApps, and protocols have struggled to attract new users and retain existing ones. This translates into a persistent liquidity drought, resulting in rug pulls, a bad reputation, or even worse - shutting off operations. At the core of these challenges is the traditional platform for TGE (token generation events) i.e. launchpads. 

Despite nearly a decade of operations, launchpads tend to fail to generate ample liquidity for new projects. Let alone new projects, the locked liquidity figures in leading launchpads tell a scary picture. Despite DeFi witnessing increased adoption, user activity is concentrated in a few chains. So are volume and investor inflows. 

What's wrong with launchpads?

TVLs can be deceiving and it is an open secret by now. DeFi has had limited adoption and it has led to circulation of volume from one dApp to another. The volume lasts as long as the hype and then users are on their way to explore new ecosystems in search of airdrops, node incentives, and other rewards. 

Emerging within the Berachain ecosystem, Dreampad is a Liquidity-centered token launching system, which means that rather than users buying into individual token sales they are buying directly into the Liquidity Pool for this new token. It allows projects to launch their token in just 3 steps.

Instead of locked liquidity, Honeypot Finance’s Dreampad prioritizes supplied liquidity. It offers long-term value to token-centric DeFi projects by ensuring fair and transparent token launches. 

Key offerings of Honeypot's Dreampad

Fair Token Offering: At the core of Dreampad is the FTO (Fair Token Offering) model. It is a PoL (Proof-of-Liquidity) accelerator that ensures transparent and fair token launches. There’s no token presale in the FTO model, preventing developers or early adopters from having an unfair advantage, thereby preventing mass sell-offs or rug pulls. 

Under the FTO model, investors buy LP (liquidity provider) tokens at the time of launch, creating liquid markets from day 1. This ensures that the token is tradeable from day 1, creating a trust-worthy environment for all the investors. Also, FTO allows protocols to sell the LP tokens to raise funding for operational purposes. However, this sale does not impact the token price in any way.

Long-Term Growth: Dreampad has an incentive plan under which they allocate 16% of HPOT from tokenomics to support the long-term development of incubated projects. This allocation can be used for activities like participating in subscriptions to better finance the launchpad projects.

Instead of directly airdropping HPOT to the community, the token is used to purchase assets launched in Dreampad, participate in Dreampad subscriptions, etc., and then use the obtained tokens for airdrops. This increases the average hold duration of a token while establishing a concrete circulation mechanism to sustain long-term growth.

100% Liquidity: Back to the biggest challenge for new DeFi projects, i.e. insufficient liquidity. As soon as the LP tokens are launched through Dreampad, they are added to HenloDEX, a Batch2 AMM-powered DEX that solves key challenges like slippage and sandwich attacks, shallow liquidity and valueless incentivization. This ensures that the newly launched token has a 100% liquidity pool for fair trading.

No Entry Barriers: A key hindrance to the mass adoption of DeFi is entry barriers like complex tech and the obligating to lock up tokens, Dreampad eliminates all these entry barriers to make DeFi interaction more inclusive, unlocking access to the masses. This is bound to increase on-chain interaction for the concerned protocol, aiding long-term growth.

Final word

The token launch scenario in DeFi has so far been dominated by developers and early adopters with unfair advantages. Dreampad eliminates this advantage by removing token presales and creating a level-playground for all users. It replaces locked liquidity with supplied liquidity and ensures 100% liquidity from day 1 to make the token tradable. Finally, Dreampad eliminates prevalent entry barriers to make DeFi more inclusive, unlocking access to hundreds of thousands of new users. All these factors are bound to help new token-based projects onboard new users, generate fresh volume and create liquid markets.