Phase 1: Vampire Attack

The primary goal of Phase 1 is to put tokens in the hands of users, with the amount of tokens users earn should be proportional to the “value” they bring to the protocol. “Value” here is measured in-terms of your commitment to use the protocol in the future.

This section details how users can participate and the rewards they stand to gain.

How to Participate

Users can participate in the Lockdrop in one of two ways:

• Vampire Attack (Liquidity providers): Existing Liquidity Providers (LPs) on existing DEXes (Cetus, Kriya, FLowX) can pre-commit to switch their LP positions for varying time periods, earning a pro-rata share of HIVE as participation reward. This directly contributes to bootstrapping liquidity for our AMM pools.

• Degen Staking (Liquid Staking via degenSUI): Users can deposit SUI which will be used to bootstrap liquidity for DegenHive’s liquid staking layer and SUI-degenSUI AMM pool.

Phase 1 - Participation mechanics overview

Timeline and Flexibility

Phase 1 spans 9 days, offering flexibility and strategic decision-making for users:

Phase 1 - Timeline

• Days 1-7: Users can freely deposit and withdraw liquidity, allowing them to optimize their positions based on perceived rewards.

• Days 7-9: Only withdrawals are permitted, limited to 50% of the initial deposit at the start of day 6 and decreasing linearly to 0% by the end of day 9. This prevents manipulation and ensures fair price discovery.

Incentives for Participation

Users receive the following rewards for participating in Phase 1:

• LP Shares: Receive a pro-rata share of DegenHive AMM pool LP tokens based on your contribution. These tokens unlock after your chosen lock-up period and represent your ownership in the pool, entitling you to a share of its fees.

• HIVE Rewards: Earn HIVE tokens, usable for participation in Phase 2 (Infusion) or claimable once the platform is live.

• Staking Rewards: DegenHive LP tokens are automatically staked, earning BEE and HIVE rewards, along with any additional third-party incentives from the original pool.

HIVE incentives for participating in phase 1

Important Notes

Early Unlocking: Users can unlock their locked DH LP tokens before the lockup period ends in case of emergencies, but a 13% fee will be charged.

By participating in Phase 1, users actively contribute to DegenHive's launch success while positioning themselves for future rewards and governance influence.