Phase 2: BEE & HIVE price discovery
Phase 2, or the Infusion Phase, serves as a critical price discovery mechanism for HIVE and BEE tokens. It also aims to establish ample initial liquidity for these tokens. The phase lasts for 9 days, with participation mechanics similar to Phase 1.
Participation Mechanisms
Users have two options to participate in Phase 2:
Deposit HIVE for SUI-HIVE Pool: Users can deposit HIVE tokens earned in earlier phases (Airdrop or Lockdrop). In return, they receive a proportional share of SUI-HIVE LP tokens and additional HIVE rewards.
Deposit SUI for SUI-HIVE and SUI-BEE Pools: Users can deposit SUI to participate in both the SUI-HIVE and SUI-BEE pools. They will be rewarded with proportional shares of SUI-HIVE LP tokens, plus additional HIVE and BEE rewards.
Notably, 15% of the total BEE supply is allocated for distribution among SUI depositors in this phase.
Timeline and Withdrawal Dynamics
Days 1-7: Users can freely deposit HIVE (which becomes non-withdrawable) and SUI (which remains withdrawable) during this period.
Days 7-9: SUI withdrawals are limited to a single instance per Phase 1 position. The maximum withdrawal amount starts at 50% of the deposit on day 6 and linearly decreases to 0% by the end of day 9.
This design mitigates potential manipulation and ensures fair price discovery.
Incentives for Participation
Phase 2 participants are rewarded generously:
LP Shares: Receive pro-rata SUI-HIVE LP shares based on your HIVE and SUI deposits. These shares vest linearly over 9 months, promoting long-term commitment to the platform.
HIVE rewards: Earn additional HIVE rewards (for both HIVE and SUI depositors), claimable once the platform goes live.
BEE rewards against their deposited SUI which can be claimed once platform is live.
BEE and HIVE LP staking rewards : DegenHive LP tokens are automatically staked, allowing participants to earn BEE and HIVE staking rewards, along with any third-party incentives associated with the underlying pools.
SUI Allocation and Price Discovery
The total SUI pooled during Phase 2 is utilized as follows:
40% for SUI-HIVE Pool: This portion is paired with deposited HIVE to create the SUI-HIVE pool. LP tokens are distributed pro-rata among participants and vest over 9 months.
50% for Core Developers: Reserved for the core development team.
10% for SUI-BEE Pool & Burn: The remaining 20% of SUI, combined with 15% of the BEE supply, establishes the SUI-BEE pool. The resulting LP tokens are burned, ensuring permanent liquidity lock-up.
The final ratio of SUI to HIVE in the SUI-HIVE pool at the end of Phase 2 determines the initial HIVE trading price. This community-driven process ensures a fair and market-reflective valuation.
Price Discovery Mechanism
The final ratio of SUI to HIVE in the HIVE-SUI pool determines the implied exchange rate between the tokens. For example, if users deposit 100 HIVE and 100 SUI, the implied HIVE to SUI exchange rate is 0.4 SUI (since 40% of SUI is allocated to the HIVE-SUI pool).
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