Overview
Last updated
Last updated
DegenHive's Automated Market Maker (AMM) protocol represents a significant evolution in decentralized exchange infrastructure, uniquely integrating gamified governance through DragonBees with sophisticated liquidity management mechanisms. The protocol combines passive concentrated liquidity (PCL) pools, weighted pools, stableswap and an innovative dual-token emission system to create a sustainable and engaging liquidity ecosystem.
The protocol operates on a dual-token system:
HIVE facilitates payments for AI API interactions and is a standard SUI coin
HONEY functions as a closed-loop token with built-in 3% burn tax on trades and transfers. HONEY emissions are restricted to liquidity providers who have staked at least one DragonBee, with 15% automatically locked with the staked DragonBee.
Protocol emissions in both HIVE and HONEY are distributed to liquidity providers based on their pools' accumulated energy and health votes from staked DragonBees. This creates a direct link between gamified governance participation and rewards distribution.
Trading fees are split into two streams: 50% is distributed among DragonBees voting for the respective pools, while the remaining 50% is used to buy back HIVE and HONEY for distribution among all DragonBees in the system.
DragonBees accumulate voting power through their energy and health points, which increase through earned emissions at a 1:1 ratio (1 HIVE = 1 energy point, 1 HONEY = 1 health point).
Users can boost their DragonBee's voting power by locking additional HIVE tokens. The lock duration affects the voting power multiplier:
4-year lock: 100% voting power (e.g., 100 HIVE = 100 energy points)
1-year lock: 25% voting power (e.g., 100 HIVE = 25 energy points)
The community can adjust emission rates through periodic voting cycles, with possible adjustments of ±3% per cycle. Decisions are made through simple majority voting, ensuring democratic protocol evolution.
Protocol token emissions (HIVE and HONEY)
Trading fee share (proportional to voting power)
Additional incentives through partner protocols (bribes)
DegenHive maintains a permissionless architecture, allowing seamless integration with external protocols and applications. This open design philosophy encourages ecosystem growth while maintaining protocol security and efficiency.
The protocol's unique combination of gamified governance and sophisticated AMM mechanics creates an engaging user experience without compromising on technical capabilities or capital efficiency.
