Defi has seen an increase in the use of liquidity mining and rewards through protocols such as Uniswap and PancakeSwap. More recently, a new batch of DeFi 2.0 protocols is exploring alternative operational options to make their ecosystem more sustainable. The Hunny Team tested the DeFi 2.0 protocol with a clear plan and developed a sustainable ecosystem with many utilities: HunnyDAO.
Sustainability is the key to long-term success. For the HUNNY token, achieving deflation has always been a priority for the team. That’s why they decided to limit the supply to 100 million HUNNY instead of the unlimited supply.
The project is still burning HUNNY through different combustion mechanisms. They have burned a total of 2.7 million HUNNY so far and the event will continue until the community sees that it is enough.
HunnyDAO is a newly added entry to Hunny Love Crypto Ecosystem, which scales DeFi Game as it aims to be the best productivity aggregator on BSC, towards a more promising future for Hunny users and the team.
Hunny Love Crypto Explained – What is HunnyDAO?
HunnyDAO reinvents a technique used by old central banks to hook their HUNNY LOVE CRYPTO tokens to a series of decentralized assets (e.g. BUSD, BNB, HUNNY) held in HunnyDAO’s treasury.
By anchoring to a series of assets, HunnyDAO is able to give LOVE an intrinsic value (IV) that cannot fall below this value and at the same time allows the value of LOVE to always remain above the value. of assets.
What makes HunnyDAO different from other OlympusDAO forks?
One factor that differentiates HunnyDAO from others is that HunnyDAO will introduce a secondary treasury backed by the profits of the Hunny ecosystem consisting of HunnyPlay, HunnyPoker, etc. These products have generated revenue since their debut.
Not only can they support HunnyDAO with treasury resources, but they can also secure the future as the entire Hunny ecosystem continues to grow.
HunnyDAO also introduces the project’s unique game theory and economics through staking and bonding. There are two main ways to start earning at HunnyDAO: Stake HUNNY LOVE crypto and Buy Bonding at a discount.
Staking in HunnyDAO
Staking is HunnyDAO’s main value accumulation strategy. Users place LOVE tokens on HunnyDAO to earn rewards. The rebase reward is derived from the proceeds from the sale of the bonds and is subject to change based on the amount of LOVE wagered in the protocol and the reward rate set by monetary policy.
Staking is a long-term passive strategy. Increasing the share of your LOVE tokens means that the cost base continuously decreases and converges to 0. This means that even if the market price of HUNNY LOVE CRYPTO falls below your original purchase price, and If the betting period is long enough, then the increase in your wagered LOVE balance will eventually outweigh the decrease in price.
When you bet, you block LOVE and get the same amount of KISS. Your KISS balance will automatically reset at the end of each interval. KISS is transferable and can be combined with other DeFi protocols.
When you bet, you will burn KISS and get the same amount of LOVE. But if you cancel the bet, the user will lose the next rebase prize. Note; rewards are only lost for tokens you have canceled; the remaining staked LOVE (if any) will continue to receive rewards.
Bonding is HunnyDAO’s secondary value accumulation strategy. They allow HunnyDAO to obtain its cash and other reserve assets such as BUSD by selling LOVE at a discount in exchange for these assets.
The protocol describes bonding with terms such as the price of the bond, the amount of LOVE to be entitled to the obligator, and the time it takes. Bonders can claim rewards (in LOVE) when they invest; and at the end of the investment period, the bonder will receive the full amount.
Bonds are an active short-term strategy. The secondary bond market price discovery mechanism makes the value of the bond more or less unpredictable. Therefore, bonding is seen as an active investment strategy and must be continuously monitored to achieve higher returns than staking.
Bonding allows HunnyDAO to accumulate its liquidity. Multiple POLs ensure there is always locked-out liquidity in trading pools to facilitate market operations and protect token holders.
Since HunnyDAO has become an autonomous market, in addition to providing additional certainty for HunnyDAO investors, the protocol also accumulates more and more revenue from LP awards in order to strengthen their coffers.
Hunny Love Crypto – Quote or bond?
In HunnyDAO, to get the desired result, the players have to cooperate with each other.
Staking and bonding are considered beneficial to HunnyDAO, while selling is considered harmful. Staking and selling will also cause price fluctuations, while bonding will not (buying HUNNY LOVE crypto from the market as a precondition for staking, thus causing price fluctuations).
If both actions are beneficial, the transfer agent also receives half the benefit (+1). If the two actions are opposite, the bad actor who moves the price will get half the gain (+1), while the good actor gets half the negative side (-1). If both actions are harmful, i.e. both agents are selling, then they both get half the downside (-1).
Hunny Love Crypto – Advantages of the Hunny ecosystem
Improve the sustainability and efficiency of the use of capital
Protocol Controlled Value (PCV) and Protocol Owned Liquidity (POL) are two important elements in HunnyDAO.
Since HunnyDAO controls the coins in its chests, LOVE can only be minted or burned using the protocol. This also ensures that the protocol can support at least 1 LOVE for 1 BUSD. You can easily determine your investment risk as you can trust that the protocol will buy LOVE under 1 BUSD in treasury business until there is no one left to sell.
As HunnyDAO accumulates more PCVs, investors can be confident that the current APY staking can last longer because there is more money in the treasury. This is one of the main reasons why having a secondary treasury in HunnyDAO is so important for the sustainability of the protocol.
HunnyDAO owns most of the liquidity thanks to the bond mechanism. Cash is issued as a bond so that liquidity is tied to HunnyDAO for the long term, which can maximize liquidity and improve capital efficiency.
HunnyDAO does not pay high agricultural premiums to incentivize liquidity providers, namely liquidity leasing. HunnyDAO assures the market that there is always liquidity to facilitate purchase or sale transactions.
Being the largest LP (liquidity provider), they earn most of the LP fees which is another source of treasury income. All POLs can be used to support LOVE.
Attractive discounts and high rewards for HUNNY token holders
This can motivate more people to join and bond in HunnyDAO.
For stakers: The main benefit of stakers comes from the growth in supply. HunnyDAO extracts new LOVE tokens from the treasury, most of which are distributed to investors. Consequently, the profits for investors will come from their auto compound balance, although the spread is still an important factor. That is, if the increase in the token balance exceeds the potential price drop (due to inflation), the investors will make a profit.
For Bonders: The main benefit for bonders comes from price consistency. The Bonder undertakes to pay up capital upfront and is promised a fixed amount of ROI at a given time with different price discounts; they will receive LOVE. Therefore, the bonder’s profit will depend on the LOVE price at the maturity of the bond. The Bonder will benefit from the increase in the HUNNY LOVE CRYPTO price.
HUNNY holders will be awarded higher premiums when HunnyDAO collects the performance fee from the bond.
Increase the momentum of the HUNNY LOVE crypto token and the HUNNY token
In order for LOVE and HUNNY to grow together, they will pool the LPs HUNNY and HUNNY in their coffers.
The combustion mechanism and limited supply of HUNNY tokens will reduce the circulating supply of HUNNY in the long term, thus increasing the value of HUNNY in the future. Therefore, by joining HUNNY, HunnyDAO will make sure that the value of the treasure will also increase.
This will benefit both LOVE and HUNNY holders in the long run, resulting in mutual benefits.
Hunny Love Crypto Conclusion
The establishment of HunnyDAO will certainly bring the project closer to its goal, which is to become the most attractive DeFi destination built on top of BSC. Team Hunny is determined to build long-term with all Hunny supporters to witness the growth of a sustainable ecosystem with many utilities.
Hunny aims to be the most attractive DeFi destination built on Binance Smart Chain (BSC). Furthermore, they are developing a brand new and unprecedented agricultural gamify where every user can enjoy high productivity and exciting games at the same time.
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