# Introduction: The Vision

The official documentation for DegenHive \[WIP]

DegenHive represents a paradigm shift in decentralized finance, merging institutional-grade DeFi infrastructure with AI-powered gaming mechanics through innovative DragonBee characters.

By seamlessly integrating advanced financial primitives with engaging gameplay elements, DegenHive creates a unique ecosystem where users can participate in DeFi while nurturing and evolving their digital companions.

## How it works? 

At its core, DegenHive generates yield through DeFi / gameplay activities, which is used to buyback HIVE and HONEY tokens, which is then distributed to the community through DragonBees - digital creatures that combine the mystical powers of dragons with the industrious nature of bees.

Each dragonBee comes with a unique 256 bit DNA, energy and health points, which will determine its visual appearance and it will grow and evolve dynamically based on changes in its DNA, energy and health score. DragonBees earn share of protocol fees  as HIVE and HONEY tokens, which increase its energy and health score, helping it grow and evolve. 

Energy and health points are consumed during gameplay / battle mechanics, during which they can evolve into more powerful forms and unlock new traits / powers. By tying DeFi yield with a dragonBee's energy / health score, DegenHive uniquely is able to use DeFi yield to power the gameplay mechanics, 

<figure><img src="/files/z02GTeFU1O8sUWmca39T" alt=""><figcaption><p>Overall view of what we're building with DegenHive</p></figcaption></figure>

### Three Foundational Pillars

* **Advanced DeFi Architecture**

  DegenHive builds upon battle-tested DeFi primitives while introducing significant innovations. Our institutional-grade infrastructure includes:

  * PCL (Passive Concentrated Liquidity) AMM inspired by Curve V2
  * SUI liquid staking solution with instant unstaking feature
  * Weighted pools to support 80:20 ratio pools, enabling meme coin trading with lower liquidity requirements
  * Community-driven emission control across AMMs through DragonBee staking
  * Borrowing against LP positions for leverage (upcoming)
* **Gamified Governance Through DragonBees**

  DragonBees – evolving digital characters that transform traditional governance into an engaging, intuitive experience:

  * Dual token system (HIVE/HONEY) ties governance to character growth
  * HIVE / HONEY earned via protocol fees used to energize / nourish the bees, driving gameplay economics
  * DragonBees can be staked with AMM pools to direct HIVE / HONEY emissions to that specific pool, for which users can earn additional incentives (bribes) and share of trading fees
* **AI-Powered Gaming Layer**

  DegenHive leverages AI technology across three distinct layers:

  * Foundation Layer: Dynamic visual evolution driven by 256-bit DNA and on-chain states
  * Character Layer: Individual AI instances hosted in TEE for unique personality development
  * Integration Layer: Cross-game compatibility with intelligent NPC behaviors

This three-tiered approach creates a seamless fusion of DeFi utility, governance participation, and gaming engagement, where each component strengthens the others to create a sustainable, growing ecosystem.

***

## Cross-Gaming Integration Framework

DegenHive's DragonBee ecosystem represents a novel approach to cross-game character integration, combining on-chain state management with sophisticated AI-powered visual generation. This infrastructure enables seamless character portability across different gaming environments while maintaining consistent progression and visual identity.

### Universal Identity Management

Each user maintains a unique on-chain profile (**DragonBee Trainer Profile)** that serves as their digital identity within the DegenHive ecosystem. This profile acts as a secure custodial system for their DragonBee characters, ensuring true ownership and seamless transferability across different gaming environments.

### Cross-Game Composability

Any game / 3rd party app can access a user's [dynamic object field](https://docs.sui.io/concepts/dynamic-fields#:~:text=There%20are%20various%20ways%20to,fields%20in%20the%20struct%20declaration\).) stored against that game's unique identifier, which can be used to store that user's game progress / state. Similarly, games can access  dynamic object fields of each DragonBee to store that character's game progress.&#x20;

<figure><img src="/files/j8bQP6b6mQyHUsqm4FC3" alt=""><figcaption><p>Simplest view of how DegenHive unlocks unlimited composability for games to build on-top of our stack</p></figcaption></figure>

This unique dynamic object fields driven architecture enables persistent game state storage across multiple applications and character progression tracking across different gaming environments. When a DragonBee character changes ownership, the entire progression history transfers seamlessly to the new owner. This creates a unique value proposition where:

* Characters retain their experience and achievements across ownership changes
* New owners can continue gameplay from previous progression points
* Historical achievements contribute to character value
* Cross-game achievements create unique character narratives

### AI-Powered Visual Generation System

DegenHive will provide a sophisticated AI infrastructure for dynamic character visualization, enabling consistent visual representation across different gaming environments, alongwith a comprehensive SDK that enables developers to easily integrate DragonBees into their games. Our overall AI tooling roadmap includes:

* Adaptive difficulty scaling based on player progression
* Dynamic personality development from character attributes
* Interactive decision-making based on character history
* Cross-game behavioral consistency

### Integration Benefits

By building on DegenHive's infrastructure, developers gain access to an established ecosystem of engaged users and a proven character management system. The platform offers immediate value through its existing user base of DragonBee holders, while the DeFi mechanics create additional incentives through continuous yield generation. This combination of gaming utility and financial benefits creates a powerful foundation for player retention and cross-game engagement.

***

## Current Development Status and Strategic Roadmap&#x20;

### Current Status: Genesis Dragon Egg Launch

DegenHive is currently launching its Genesis Dragon-Bee Eggs, marking the beginning of our ecosystem. These eggs represent the foundation of our protocol, with a carefully designed economic model featuring dynamic pricing from 15 SUI to 77 SUI. The total supply is capped at 42,690 genesis eggs, targeting a maximum raise of approximately 2.24M SUI.

Each Genesis Egg contains randomly allocated HIVE and HONEY tokens that determine initial energy and health values, alongside a unique 256-bit DNA sequence that will shape the dragon-bee's appearance and powers upon hatching. As first-generation assets, these eggs hold special status within the protocol's hierarchy.

<figure><img src="/files/OFgF79Azv94paHR0Dt1u" alt=""><figcaption><p>Screenshot from our website</p></figcaption></figure>

## Strategic Roadmap

The funds raised from dragon-bee egg sales will be strategically deployed to develop and ship the following features in sequence:

1. **AI Infrastructure Development:** Implementation of Stable Diffusion XL for genesis asset generation along-with development of ControlNet and DepthMap integration for dynamic visual evolution
2. **Hatching Mechanism & Visual Evolution:** Activation of hatching system for eggs with 4200 energy and 69k health with AI-powered dynamic artwork generation based on DNA attributes
   1. Visual evolution system tied to character progression
   2. Integration of state-responsive character growth mechanics
3. **DeFi Infrastructure & Borrowing:** Implementation of borrowing mechanics against LP positions
4. **Breeding & Gameplay Framework:** AI-powered visual assets generation via breeding with genetic trait inheritance
5. **Gaming Infrastructure & Tools:** Release of SDK for game integration
6. **PvP & Evolution Mechanics:** Launch of PvP battle system in HiddenWorld
   1. Implementation of evolution and multiplier mechanics
   2. Integration of AI-powered opponent behavior

***

#### Important Links 🔗

* Telegram: <https://tg.degenhive.ai/>&#x20;
* Discord - <https://discord.gg/YCvE53B6ku>&#x20;
* Twitter - <https://twitter.com/DegenHive>&#x20;


# Motivation

Blending Gaming with DeFi to Enhance Accessibility

At DegenHive, our core motivation is to make decentralized finance (DeFi) approachable and engaging for the average consumer. We're achieving this through:

* **Gamified Governance:** Voting mechanics are designed to be fun and interactive, encouraging users to participate in shaping the platform's future.
* **Approachable Brand:** DegenHive's brand is playful and welcoming, making DeFi less intimidating for newcomers.
* **Sustainable Model:** Our unique tokenomics and revenue-sharing mechanisms ensure long-term growth and benefits for all participants.

***

### Reimagining Digital Collectibles

We've studied the limitations of previous digital collectible projects and developed innovative solutions to create meaningful, lasting value.

### Supply Dynamics

**The Challenge:** Traditional gaming digital collectibles (cryptokitties / axies) suffer from unlimited supply potential, which often leads to value dilution.

**Our Solution:**

* Hard cap of 42,690 genesis dragon-bee eggs
* New eggs only possible through community-driven breeding mechanics
* Regulated breeding through cooldown periods
* Natural supply reduction through HiddenWorld mechanics
* HONEY token locking mechanism encourages strategic thinking about keeping dragon-bees in circulation

***

### Utility and Function

**The Challenge:** Most digital collectibles lack meaningful utility beyond collection.

**Our Solution:** Dragon-bees offer multiple engagement opportunities:

* AMM pool lockups for directing emissions and powering up dragon-bees and earning rewards in the form of bribes and trading fees
* Breeding mechanics for creating new, unique dragon-bees
* Strategic gameplay for evolution opportunities
* Revenue sharing from protocol activities


# GameNomics

Unveiling Game-nomics in DegenHive: The Role of HIVE and HONEY Tokens

DegenHive introduces a unique approach to in-game economics (game-nomics) through the utilization of two distinct tokens: HIVE and HONEY. These tokens play a crucial role in powering the platform's DeFi features, facilitating governance, and driving user engagement.

* **HIVE** is a native Sui coin that is used to accumulate energy points for a dragon-bee and is lockable for max 4 years with the dragon-bee.&#x20;
* **HONEY** is a native Sui [*closed-loop-token*](https://docs.sui.io/standards/closed-loop-token) with a 3% burn tax and is used to accumulate health points for a dragon-bee. &#x20;

<figure><img src="/files/UUxLdCq4XXDaCyvIq8xP" alt=""><figcaption><p>DegenHive's dual token economy</p></figcaption></figure>

## **Revenue-Driven Buybacks**

DegenHive generates revenue through various streams including its Automated Market Maker (AMM), fees on liquid staking rewards, and trading royalties from dragon-bee marketplace trading.

All protocol revenue is strategically used to:

1. Buyback SUI from the market
2. Use SUI to buyback HIVE and HONEY in a 50:50 ratio
3. Distribute HIVE and HONEY among dragon-bees based on HIVE and HONEY locked with them


# HIVE == Energy

### Overview

HIVE tokens serve as the energy reservoir for dragon-bees within DegenHive. They can be locked with dragon-bees for up to four years, enabling them to accumulate energy points and earn a share of the HIVE redistributed through protocol-driven buybacks.

### **Supply Distribution**&#x20;

The total supply of HIVE tokens is capped at 1 billion, allocated as follows:

* **45%** reserved for liquidity provider (LP) incentives.
* **30%** allocated to the team and early backers, subject to a vesting period of 1-3 years.
* **15%** earmarked for bootstrapping and launch initiatives.
* **5%** set aside for the protocol treasury.
* **5%** designated for genesis dragon-bee eggs.

<figure><img src="/files/eax8N67PTpbLTMyDfHfB" alt=""><figcaption></figcaption></figure>

### **Utility and Use-Cases**&#x20;

HIVE tokens are integral to the ecosystem with four primary uses:

1. **Liquidity Incentives**: Post-launch, HIVE tokens are distributed to the community primarily through incentives for liquidity providers who supply liquidity to various pools.
2. **Energy Accumulation**: Locking HIVE with dragon-bees allows users to accumulate energy points crucial for the vitality and functionality of their dragon-bees, also enabling them to earn more HIVE as rewards.
3. **Directing HIVE emissions**: Users can leverage the energy points of their dragon-bees to participate in and vote on the distribution of HIVE emissions across different AMM pools.
4. **AI api access fees:** HIVE will be used for AI API access payments &#x20;


# HONEY == Health

### Overview

HONEY is a closed-loop-token designed to mirror natural beehive mechanics on-chain, serving as the vital health metric for dragon-bees within the DegenHive ecosystem. It features a **3% burn tax on transfers / trades**, representing the natural consumption rate of honey within a hive. HONEY is used to power up your Dragon-Bees, boost their health, and unlock rewards within the DegenHive ecosystem.

> **Note:** The design of HONEY and its usage mechanics are inspired by natural beehive activities, where dragon-bees accumulate HONEY to sustain themselves, particularly through the metaphorical 'winter season'.

### Dragon-Bee Integration

* Genesis eggs contain randomized pre-locked HONEY amounts
* Earned HONEY (from protocol revenue or emissions) splits into:
  * 15% automatically locks with dragon-bee
  * 85% becomes claimable by owner
* Additional HONEY can be locked to boost health points
* Locked HONEY is only retrievable by sending dragon-bee to HiddenWorld

### **Supply Distribution**

The total supply of HONEY tokens is set at 42 billion, allocated as follows:

* **50%** reserved for liquidity provider incentives.
* **30%** allocated to the team and early backers, with a vesting period of 1-3 years.
* **10%** earmarked for bootstrapping and initial launch activities.
* **5%** set aside for the protocol treasury.
* **5%** designated for genesis dragon-bee eggs.

<figure><img src="/files/diGY5KSVL8jzBeuWR1to" alt=""><figcaption></figcaption></figure>

## **Utility and Use Cases of HONEY**&#x20;

HONEY tokens are integral to the DegenHive ecosystem with four primary uses:

1. **Liquidity Incentives**: HONEY tokens incentivize liquidity providers to contribute to pools, facilitating token distribution to the community post-launch.
2. **Health Enhancement**: By locking HONEY with dragon-bees, users can boost their dragon-bees' health points and earn additional HONEY as rewards.
3. **Governance Participation**: Users can employ the health points of their dragon-bees to participate in and influence the allocation of HONEY emissions across AMM pools.
4. **Value Assurance**: Dragon-bees can secure a minimum value claimable by their owners, achievable through sending the dragon-bee to the Hidden World.


# DragonBees

Introducing first ever fully on-chain dragons powered beehive

DragonBees represent a novel fusion of decentralized finance (DeFi) governance and artificial intelligence-driven gaming infrastructure. By combining the mythological strength of dragons with the collective organization of bees, DragonBees create a unique ecosystem where financial primitives and gameplay mechanics converge.

## Introduction: Vision and Core Concept

DragonBees emerged from a vision to make participating in DeFi governance fun and easy through gamification. he metaphorical fusion of dragons (representing power and value) with bees (symbolizing collective organization and productivity) creates a framework where governance becomes an engaging, gamified experience while maintaining serious financial utility.

### **Conceptual Foundation**

DragonBees begin their existence as genesis eggs, which require nurturing through engagement with Automated Market Maker (AMM) pools to achieve specific energy and health thresholds for hatching. This mechanism establishes an immediate connection between gameplay elements and DeFi participation, setting the stage for deeper ecosystem integration.

1. **Genetic Diversity and Rarity**:&#x20;

   Each DragonBee possesses a unique 256-bit DNA sequence that determines its traits, appearance, and capabilities. This genetic architecture comprises:

   * Family traits (4 bits): Determining elemental affinity ( fire, water, or ice etc)
   * Evolution state (3 bits): Tracking development stage
   * Appearance genes (140 bits): Controlling visual characteristics
   * Power traits (84 bits): Defining abilities and strengths

   These genetic traits affect not only the dragon-bee’s performance in battles but also its desirability and strategic value in breeding.<br>

   <figure><img src="/files/V7qjzEOQpX2QLiko5ln7" alt=""><figcaption><p>Every dragon-bee is represented by its unique DNA, which mutates during evolution<br></p></figcaption></figure>
2. **Breeding Mechanics**: Breeding allows players to combine the genetic traits of two dragon-bees to create a new egg. This process involves:
   1. **Cooldown Periods**: After breeding, dragon-bees undergo a cooldown period, simulating a recovery phase before they can breed again, adding a layer of strategic planning for players.
   2. **Trait Inheritance**: Offspring inherit a mix of genetic traits from their parents, with a chance for mutation, introducing new traits that can lead to rare and powerful new dragon-bee.&#x20;
3. **Gameplay Mechanics:** Users can “release” dragon-bees to unlock HIVE & HONEY tokens locked with the dragonBee. These"released" dragonBees will be usable by games to power intelligent NPCs for their gameplay.&#x20;

<figure><img src="/files/Lz3OJatik3s8jXUOntEj" alt=""><figcaption><p>DragonBees supply is driven by breeding and gameplay (battle for evolution) mechanics</p></figcaption></figure>

***

## DeFi Governance Architecture

DragonBees implement a dual-token economy through HIVE (energy) and HONEY (health) tokens. This system creates distinct utility streams:

Energy (HIVE) governs the DragonBee's power and animated effects in their visual appearance, while Health (HONEY) determines their resilience and evolutionary potential. Energy and Health score also act as voting weights for directing LP emissions across AMM pools, tying gameplay mechanics with DeFi utility.&#x20;

Holders can use dragonBees for:

1. **Participation in Ecosystem Governance**: Dragon-bees empower their owners to participate in decision-making processes within DegenHive, such as directing AMM emissions or voting on governance proposals. This gamifies the governance process, making it more engaging and giving each dragon-bee additional utility.&#x20;
2. **Protocol yield:** Dragon-bee eggs earn protocol yield share in HIVE and HONEY tokens, and can be locked with AMM pools to earn additional rewards (trading fees and bribes)

NOTE: 15% of HONEY being earned by dragonBee keeps getting locked with the dragonbee, unlocked only when the dragonBee is "released" from the supply.&#x20;

<figure><img src="/files/OteSCsq6qSS8uUuZvIIS" alt=""><figcaption><p>Dual token economy fuses DeFi yield and character growth mechanics</p></figcaption></figure>

***

## Gaming Infrastructure and Future AI Integration

DegenHive's gaming infrastructure is built on a robust dynamic object fields powered  state persistence system that enables cross-game character progression and ownership. Each DragonBee maintains its state and progression data through an on-chain profile system. This system stores crucial information including game progress, achievements, and character development across different gaming environments.

When ownership transfers occur, the entire history and progression data moves with the DragonBee, allowing new owners to continue from the previous progression point. This creates genuine digital ownership where a DragonBee's history and achievements become part of its inherent value.

<figure><img src="/files/e5iymVgJ8ZTkxTA8H3zH" alt=""><figcaption><p>Our roadmap on adding AI capabilities to DragonBees</p></figcaption></figure>

### Planned AI Development

Our roadmap includes the development of AI-powered features to enhance the DragonBee ecosystem. The first phase focuses on implementing visual generation capabilities:

#### Phase 1: Visual Generation

* Implementation of Stable Diffusion XL for generating base DragonBee assets
* Development of DNA-based trait expression system
* Creation of consistent visual style framework

#### Phase 2: Gaming Integration

* Development of SDK for game developers
* Implementation of cross-game asset compatibility
* Creation of standardized APIs for DragonBee integration

#### Phase 3: Advanced Features

* Integration with SuiPlay gaming console ecosystem
* Development of adaptive gameplay mechanics
* Implementation of enhanced character progression systems

This phased approach ensures steady development of AI features while maintaining system stability and user experience. Each phase will undergo thorough testing and community feedback before deployment.

Note: The AI features described are currently under development and will be implemented according to the roadmap. The timeline and specific features may be adjusted based on technical requirements and community needs.


# Overview

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.

## Token Economics

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](https://docs.sui.io/standards/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.

## Emissions and Governance

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.

<figure><img src="/files/BuIcMFTdPBFLKgztIshG" alt=""><figcaption><p>Animation depicting how values flows across DegenHive's AMM</p></figcaption></figure>

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.

#### DragonBee Voting Mechanism

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)

#### Emission Rate Governance

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.

### Liquidity Provider Incentives

* Protocol token emissions (HIVE and HONEY)
* Trading fee share (proportional to voting power)
* Additional incentives through partner protocols (bribes)

### Integration and Accessibility

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.


# AMM Pools

DegenHive supports the permissionless creation of 2-token or 3-token AMM pools. It offers three distinct pool types, each designed to cater to different liquidity provision strategies and trading needs of protocols building on-top of Sui network:

1. **Passive Concentrated Liquidity (PCL):**  Allows for efficient, low-slippage swaps between tokens with varying price correlations. DegenHive PCL pools utilize: <br>

   1. Bonding Curve: Adjusted with parameters for fine-tuning liquidity concentration and pricing.&#x20;
   2. Price Scaling: Dynamically adjusts to provide deep liquidity around the current market price.&#x20;
   3. Dynamic Fee Mechanism: Fees change based on pool balance, rewarding liquidity providers during periods of imbalance.

   <figure><img src="/files/S0GDGoEHmp9lAwsIRrGM" alt=""><figcaption><p>Left image: Comparison of AMM invariants: Curve v2 (orange), StableSwap (blue), and two constant product invariants (dashed)<br>Right image: Schematic showing fees as a function of pool balance. As the pool goes from fully balanced (x-axis = 1) to fully imbalanced (x-axis = 0), fees increase from mid fee to out fee.</p></figcaption></figure>
2. &#x20;**Stableswap:** Designed for trading assets with closely correlated prices (such as stablecoins), Stableswap pools minimize slippage and offer greater efficiency for these trades.
3. **Weighted:** Weighted pools support a wider array of assets and allow for customizable ratios. Prices are determined based on pool balances, weights assigned to individual assets, and the size of the trade.

> Note : DegenHive pools come with built-in functionality for flash loans and cumulative price calculations, offering developers the capability to construct TWAP (Time-Weighted Average Price) oracle feeds for tokens traded on the protocol.

### Fee tiers:

DegenHive's AMM pools follow the following fee structure by default.&#x20;

* PCL pools:  PCL pools charge  fees dynamically based on pool's internal fee config, which incresases during period of low volume and decreases during period of high volume. Out of the total fees charged, 70% is charged as protocol fees and remaining 30% is distributed among LPs&#x20;
* Stableswap pools: 0.35% fee is charged on every swap, out of which 70% is charged as protocol fees and remaining 30% is distributed among LPs&#x20;
* Weighted pools:  0.35% fee is charged on every swap, out of which 70% is charged as protocol fees and remaining 30% is distributed among LPs&#x20;

Note: Fee structure for every pool is updatable by the LPs of that pool by passing a governance proposal.&#x20;

## Protocol fees distribution

As stated above, every 70% of the swap fees collected by every pool is collected as protocol fees. This fees is then distributed as follows -&#x20;

1. All protocol fees collected by a pool is swapped for SUI.&#x20;
2. 10% of this SUI is added to protocol treasury and is stored with [YieldFlow shared object](https://suivision.xyz/object/0x5a79f26a90cf6a652cf45ad3dfbe1e3565503e70d866e3149292ccbc8fcd1420).&#x20;
3. Remaining SUI is equally used to buyback HIVE and HONEY tokens.&#x20;
4. 50% of the bought HIVE and HONEY tokens are then distributed among dragon-bee eggs locked with the AMM pool. (incentivizing dragon-trainers to lock egg with AMM pools which earn more fees)
5. Remaining 50% of HIVE and HONEY are distributed among all dragon-bee eggs based on their vHIVE and locked HONEY values.&#x20;

<figure><img src="/files/aexrTy47ZUG3OljaAE3u" alt=""><figcaption><p>AMM trading fees distribution flowchart</p></figcaption></figure>


# Incubating eggs with AMM pools

Micro governance over AMM pools enabled by PoolHive Objects

DegenHive's Automated Market Maker (AMM) sets a new standard in DeFi by being the first community-owned AMM driven by dragon-bee owners. This innovative system allows dragon-bee owners to actively participate in directing HIVE and HONEY token emissions to different AMM pools, effectively shaping the liquidity landscape of our platform.

### **Dynamic Token Emissions and Voting Mechanism**

1. **Emissions Voting**: Dragon-bee owners can lock their dragon-bees with specific AMM pools, "voting" to allocate more HIVE and HONEY emissions to those pools for each voting cycle. This unique feature integrates community governance directly with economic incentives, ensuring that the most supported pools receive enhanced token emissions.
2. **Cyclic Voting Periods**: Voting cycles are conducted every three Sui epochs (with one epoch equating to 24 hours), allowing for regular updates and adjustments from the community.

### **Rewards for Participation**

* **Trading Fee Share**: Users who lock their dragon-bees alongside their LP positions in an AMM pool receive 50% of the trading fees collected by that pool, distributed in HIVE and HONEY tokens proportional to the energy and health points of the locked dragon-bees.
  * This incentivizes users to stake for pools which will earn more trading fees.&#x20;
* **Bribe Incentives**: External protocols and meme-coin projects can offer bribes to incentivize users to support their pools. These bribes, denominated in the coins supported by the pool, increase the attractiveness of staking with particular pools.
  * &#x20;This will enable 3rd party projects to bootstrap liquidity in their AMM pools.&#x20;
  * Projects launching meme-coins on DegenHive by default allocate a percentage of their total supply as bribes, distributed over a predefined number of cycles to dragon-bee eggs staked with their AMM pool. &#x20;

> Note that only the LPs who stake dragon-bee egg along with their LP position will receive HONEY emissions. Users who stake LP tokens but do not stake a dragon-bee egg will only receive HIVE emissions.

### **Impact on Dragon-Bees**

* **Enhanced Growth**: The energy and health points of dragon-bees increase significantly when staked with AMM pools, as both emission rewards and trading fees contribute to their development.
* **Preparation for PvP Battles**: With the upcoming launch of PvP battle games, locking dragon-bee eggs with AMM pools will serve as an effective strategy to "recharge" dragon-bees, preparing them for engaging in combat and other game sessions.

***

## **How Emissions are Allocated in DegenHive’s AMM**

As mentioned above, At DegenHive, users leverage dragon-bee eggs by locking them with liquidity pools (LP pools) to influence the distribution of HIVE and HONEY token emissions. This voting mechanism ensures that pools with higher user engagement receive a larger share of emissions. The formulas below detail how these distributions are calculated:\
\
**1. HIVE Distribution Formula:** The amount of HIVE a pool earns per epoch is determined by the proportion of energy points that the pool holds relative to the total energy points staked across all pools.

<figure><img src="/files/bRwnIhuHYONVzNjUmkTM" alt="" width="375"><figcaption></figcaption></figure>

**2. HONEY Distribution Formula:** Similarly, the HONEY each pool receives is based on its share of health points compared to the total health points across all pools. &#x20;

<figure><img src="/files/R6wSPWNNVF86xnUKEBXb" alt="" width="375"><figcaption></figcaption></figure>

**LP Stakers' Earnings Calculation:** LP stakers’ rewards in both HIVE and HONEY are calculated based on the amount of LP tokens they have staked in a pool, proportionate to the total LP tokens staked in that pool.

<figure><img src="/files/ou76cDj52oHsiYOGCqcv" alt="" width="372"><figcaption></figcaption></figure>

<figure><img src="/files/pWzNOjkwFjTGhlImAiJz" alt="" width="375"><figcaption></figcaption></figure>

These formulas ensure a fair and transparent mechanism for distributing token emissions based on the active participation of users and their contributions to the liquidity of the pool, while promoting a community-driven approach where the allocation of resources is directly influenced by the engagement level of the participants.

***

### Adding 3rd Party Incentives as LP staking rewards

Each PoolHive is capable of supporting up to three third-party rewards simultaneously. These rewards can be added by submitting a proposal through the pool governance mechanism managed by the PoolHive.&#x20;

Additionally, proposals can be passed to update mathematical or fee-related parameters for the LiquidityPool governed by the PoolHive.


# Liquid Staking via dSUI

### What is degenSUI?

degenSUI (dSUI) is a yield-bearing token that represents your ownership of SUI staked via DegenHive.

It leverages the recently introduced SIP-31 and SIP-33 standards on Sui mainnet, offering infinite liquidity through instant unstaking while minimizing depegging risks.

dSUI ensures efficient management of staked SUI across StakingPools, making it future-proof and scalable as network demands increase.

### How does it work?

When you stake your SUI, you receive a StakedSui object in return. Our [DSUI\_VAULT shared object ](https://suivision.xyz/object/0x85aaf87a770b4a09822e7ca3de7f9424a4f58688cfa120f55b294a98d599d402)holds these StakedSui objects and issues dSUI to the user. This token represents your stake and can be freely traded or used within the Sui ecosystem.

DSUI leverages  SIP-31 and SIP-33 standards and allows instant unstaking to the users (similar to springSUI), eliminating the risk of depegging.&#x20;

### How does validator whitelisting work, and is it good for decentralization?

At launch, degenSUI will stake SUI equally across 5 whitelisted validators. As staking activity grows, the protocol gives priority to validators with the least amount of SUI staked via DegenHive.

This ensures a balanced distribution and prevents any single validator from accumulating too much stake. Users can choose from any of the active validators, offering flexibility and promoting decentralization.

Once DegenHive's governance is live, the community will have the power to vote on adding or removing validators from the whitelist.

### What fees are charged?

**Rewards Fee:** The protocol takes a 10% fee on staking rewards. For example, if your staked SUI earns 100 SUI in rewards, 10 SUI will be collected as a protocol fee, and 90 SUI will be distributed to stakers by increasing the dSUI-to-SUI exchange rate.\
\
**Redemption Fee:** A minimum fee of 1 basis point (bp) applies when redeeming dSUI for SUI. Redeeming 1,000 dSUI at 1 bp would incur a 0.1 SUI fee.\
\
Collected fees are used to buy back HIVE and HONEY tokens, which are distributed to dragon-bees, boosting their energy and health points while generating yield for their owners.

### What are the risks?

**Smart Contract Risk:** Like any liquid staking token, dSUI is susceptible to smart contract exploits. If the contract is hacked or the unstake mechanism fails, users may lose funds or face depegging risks.\
\
**Validator Risk:** Staking rewards are subject to validator performance. Poor performance or slashing penalties can reduce earnings or, in extreme cases, result in the loss of staked assets.


# HiveAI

Expanding the Digital Consciousness of Dragon-Bees

As digital landscapes evolve, the intersection of artificial intelligence and blockchain offers unprecedented opportunities to reimagine intellectual property.&#x20;

**HiveAI** is DegenHive's innovative platform enabling users to launch tokenized AI agents that simulate the "liveness" and unique personality of their Dragon-Bees. These agents are not merely tools; they serve as narrative engines, building lore and growing the digital footprint of your Dragon-Bee across decentralized and social ecosystems.

> HiveAI is currently under development, but the vision is clear: to merge **crypto mechanics** with **AI-driven storytelling**, creating a platform where Dragon-Bees can establish unique digital identities, build communities, and evolve through meaningful interactions.

### Core Features

* **Build Lore**
  * AI-generated stories and visuals based on your Dragon-Bee's unique traits.
  * Celebrate milestones such as breeding, staking, or battles in real-time.
  * Shape a dynamic, evolving digital narrative tied to your Dragon-Bee’s actions.<br>

* **Grow Community**

  * Autonomous Twitter and Telegram management to narrate your Dragon-Bee's journey.
  * Meme generation and content creation to engage with global communities.

* **Shape Digital Evolution**
  * Customize your Dragon-Bee's communication style and persona.
  * Influence how its story unfolds across platforms and ecosystems.
  * Develop a distinctive brand identity around your Dragon-Bee.

### **How It Works**

1. **Launch Tokenized AI Agent**\
   Each Dragon-Bee can launch a unique tokenized AI agent tied to its personality and traits. These agents function as narrative engines, automatically generating content and interacting across social platforms.
2. **On-Chain Achievements Drive Stories**\
   Actions such as staking, breeding, and battling are reflected in real-time across AI-managed social accounts. For example, your Dragon-Bee's Twitter account may celebrate a successful battle or the birth of a new Dragon-Bee with personalized visuals and text.
3. **Community Integration**\
   Tokens launched from the same Dragon-Bee interact with each other, creating a shared ecosystem of stories and collaborations. AI agents from sibling tokens may compete, collaborate, or celebrate shared achievements, weaving a cohesive narrative fabric across the platform.
4. **Customizable Narratives**\
   Dragon-Bee owners retain control over their AI agents, allowing them to fine-tune communication styles, adjust personas, and steer their Dragon-Bee’s lore to align with their vision.

### **Future Outlook**

HiveAI is designed to scale alongside the DegenHive ecosystem. In the future, these AI agents may evolve further, interacting with external platforms, integrating with more advanced machine learning models, and contributing to a growing dataset of self-evolving digital assets.&#x20;

The synergy between **crypto** and **AI** marks an important step in the evolution of decentralized ecosystems, where digital creatures are not just owned but actively contribute to the creation of immersive, interactive experiences.


# Package Addresses

### Latest Package Addresses \[Mainnet]

| Package Name    | Address                                                            | Description                                                  |
| --------------- | ------------------------------------------------------------------ | ------------------------------------------------------------ |
| Yield Flow      | 0x50c2216a078d3bdf5081fe436df9f42dfdbe538ebd9c935913ce2436362cff90 | Implements protocol configuration related logic              |
| AMM Math        | 0x858818ce0608bc6b393735ada00fd77db3c417c0914fd7a2fcfcf29b0256b0fa | Implenents Stableswap, weighted and curved AMM pools math    |
| DSUI Vault      | 0x17a24a7967dbd0185a77f9c0b5f66937ad0286c7f509c16c056ac2f298ccaf43 | Implements SUI liquid staking via DSUI VAULT                 |
| Dragon Trainer  | 0xf6c1b082c155db17da129050ac2f208986d08bf37d69f41f5279657fbbf07080 | Implements Dragon Trainer, dragon-bees and marketplace logic |
| Two Token AMM   | 0x30983736c532da8eb665a4ced2223f3ca1dc169f8e5600fd732ec0e2ad380f57 | Implements Two Token AMM                                     |
| Three Token AMM | 0x8611689808d76acc947bb41ac9df2231fb0470dc1b622cc81c1195cb01e457b6 | Implements Three Token AMM                                   |
| Dragon Food     | 0x824a99f48b4fea122a2e6e15caf4ebb254ff77ca4a5b63b476411b03d0bfc466 | Implements LP token staking for rewards                      |
| Queen Maker     | 0x469120a4ba8493867f4535891a7bfe86c2a3824a78a367b036b72a5144c43406 | Implements Queen Maker                                       |
| Scripts         | 0x5171eeaddbdaddeac72e78fd806c9989294c64e926cf8a95804a361de3d4f9aa | Implements helper router functions for our AMM pools         |


# Shared Objects

### Shared Objects

<table><thead><tr><th>Object Name</th><th>Address</th><th width="73">Link</th><th>Description</th></tr></thead><tbody><tr><td>TWO POOL REGISTRY</td><td>0xefd672db3df3885a8745803f0ede200402dba2e8cecea9bf62ce7a411e004a5d</td><td><a href="https://suivision.xyz/object/0xefd672db3df3885a8745803f0ede200402dba2e8cecea9bf62ce7a411e004a5d">Link</a></td><td>Required when creating a new 2-token AMM pool. Stores 2-token AMM pool addresses &#x3C;> identifiers mapping</td></tr><tr><td>THREE POOL REGISTRY</td><td>0xb7c5c13c91397d411ba3dbba36505b9e843885e5c2ed00cf6ba235890d9a8af5</td><td><a href="https://suivision.xyz/object/0xb7c5c13c91397d411ba3dbba36505b9e843885e5c2ed00cf6ba235890d9a8af5">Link</a></td><td>Required when creating a new 3-token AMM pool. Stores 3-token AMM pool addresses &#x3C;> identifiers mapping</td></tr><tr><td>DSUI VAULT</td><td>0x85aaf87a770b4a09822e7ca3de7f9424a4f58688cfa120f55b294a98d599d402</td><td><a href="https://suivision.xyz/object/0x85aaf87a770b4a09822e7ca3de7f9424a4f58688cfa120f55b294a98d599d402">Link</a></td><td>Implements DSUI Vault (SUI liquid staking)</td></tr><tr><td>BEES MANAGER</td><td>0x633a531eefd24c23219716efb413a726fb9a244d4196d1432e6152af1fbe50ac</td><td><a href="https://suivision.xyz/object/0x633a531eefd24c23219716efb413a726fb9a244d4196d1432e6152af1fbe50ac">Link</a></td><td>Manages the dragon-bees NFT collection</td></tr><tr><td>YIELD FARM</td><td>0x4070fd06a34ec576ef7185ff45679233ceb39a7e03473ccbb3a4a60728cceffb</td><td><a href="https://suivision.xyz/object/0x4070fd06a34ec576ef7185ff45679233ceb39a7e03473ccbb3a4a60728cceffb">Link</a></td><td>Custodies HIVE and HONEY LP tokens to be distributed among dragon-bee NFTs</td></tr><tr><td>TRAINER_MAPPING_STORE</td><td>0xc37f21db36c0a5d675a6864f21f0935a83952ade00e46b84195be4434e9c402b</td><td><a href="https://suivision.xyz/object/0xc37f21db36c0a5d675a6864f21f0935a83952ade00e46b84195be4434e9c402b">Link</a></td><td>Stores dragon-trainers &#x3C;> usernames and similar mappings for quicker access</td></tr><tr><td>MARKETPLACE</td><td>0x8714e3aa8c2ae421420997a520b38a8bf66965acc9c130246437b14cd1bbb924</td><td><a href="https://suivision.xyz/object/0x8714e3aa8c2ae421420997a520b38a8bf66965acc9c130246437b14cd1bbb924">Link</a></td><td>Facilitates dragon-bees trading among users</td></tr><tr><td>QUEEN MAKER</td><td>0xf8fe8b500c206044d1a46797ca268cf65154729d32255fcbaa149b3ddd4780f7</td><td><a href="https://suivision.xyz/object/0xf8fe8b500c206044d1a46797ca268cf65154729d32255fcbaa149b3ddd4780f7">Link</a></td><td>Implements auction logic for a dragon-bee to become a queen-bee</td></tr><tr><td>DRAGON FOOD</td><td>0x824a99f48b4fea122a2e6e15caf4ebb254ff77ca4a5b63b476411b03d0bfc466</td><td><a href="https://suivision.xyz/object/0x8c4452801b68f4d22f5cec0f96562bc1ba7f93e28377f19ac9d0ec8814089dc3">Link</a></td><td>Implements LP token staking for rewards</td></tr><tr><td>HONEY MANAGER</td><td>0x21fbea0ca478ca51a00766529ebcf5f0eded1d4a9fcbd81f7cba48fa5744674a</td><td><a href="https://suivision.xyz/object/0x21fbea0ca478ca51a00766529ebcf5f0eded1d4a9fcbd81f7cba48fa5744674a">Link</a></td><td>Required for txs involving HONEY token</td></tr><tr><td>YIELD FLOW OBJECT</td><td>0x5a79f26a90cf6a652cf45ad3dfbe1e3565503e70d866e3149292ccbc8fcd1420</td><td><a href="https://suivision.xyz/object/0x5a79f26a90cf6a652cf45ad3dfbe1e3565503e70d866e3149292ccbc8fcd1420">Link</a></td><td>Implements protocol configuration related logic</td></tr><tr><td>SUI FEE COLLECTOR</td><td>0x641176d85a5275c2f61e2980defbed0351e9fc37acf356de87cc5336ccb167d9</td><td><a href="https://suivision.xyz/object/0x641176d85a5275c2f61e2980defbed0351e9fc37acf356de87cc5336ccb167d9">Link</a></td><td>Collects SUI to be distributed among dragon-bees</td></tr><tr><td>HIDDEN WORLD</td><td>0x6eaa19716aa30990e67cd8928a8ec0ccd35f790027a3ff49ee17a89b00b580a7</td><td><a href="https://suivision.xyz/object/0x6eaa19716aa30990e67cd8928a8ec0ccd35f790027a3ff49ee17a89b00b580a7">Link</a></td><td>Implements Hidden World (p2p battles b/w dragon-bees)</td></tr><tr><td>TWAP UPDATE CAP</td><td>0x3a2c03d580b574618e2e5a99dc4060c1614fa7e92279e80977f4c8cbec0a42a9</td><td><a href="https://suivision.xyz/object/0x3a2c03d580b574618e2e5a99dc4060c1614fa7e92279e80977f4c8cbec0a42a9">Link</a></td><td>Required for txs involving HIVE TWAP oracle</td></tr><tr><td>HIVE GRAPH</td><td>0x25706d8493025282679e4f161d3900237e9a72ba172d4753a9bc44d89c51adf4</td><td><a href="https://suivision.xyz/object/0x25706d8493025282679e4f161d3900237e9a72ba172d4753a9bc44d89c51adf4">Link</a></td><td>Implements follow / unfollow logic b/w dragon-trainers</td></tr></tbody></table>

### Token related Objects

<table><thead><tr><th>Object Name</th><th>Address</th><th width="82">Link</th><th>Description</th></tr></thead><tbody><tr><td>HONEY TOKEN POLICY</td><td>0x4bf2edc90330aadd6f6b61f4d6bc0f7c49a53da9afe5e60cd4aee438324eb316</td><td><a href="https://suivision.xyz/object/0x4bf2edc90330aadd6f6b61f4d6bc0f7c49a53da9afe5e60cd4aee438324eb316">Link</a></td><td>Required for txs involving HONEY token</td></tr><tr><td>DSUI METADATA</td><td>0xd80bc68ffcd2774d158e45f3aff6626b52cfc2bbb50fe65b5bb8baeb2d0d881f</td><td><a href="https://suivision.xyz/object/0xd80bc68ffcd2774d158e45f3aff6626b52cfc2bbb50fe65b5bb8baeb2d0d881f">Link</a></td><td>Metadata for DSUI token</td></tr><tr><td>HONEY METADATA</td><td>0x9c51399d3738ea35cc40cefe477837202669975fcc0a20874c88049e97fa45dc</td><td><a href="https://suivision.xyz/object/0x9c51399d3738ea35cc40cefe477837202669975fcc0a20874c88049e97fa45dc">Link</a></td><td>Metadata for HONEY token</td></tr><tr><td>HIVE METADATA</td><td>0x21e4cbdea2e2784b11c98ba65467be8e1f31e0e55468b9bdd703ac6d87f2e8fc</td><td><a href="https://suivision.xyz/object/0x21e4cbdea2e2784b11c98ba65467be8e1f31e0e55468b9bdd703ac6d87f2e8fc">Link</a></td><td>Metadata for HIVE token</td></tr></tbody></table>


# Integration Guide

\[SOON]