DeFi Primitives
Protocol yield earned by DeFi primitives is used to incentivize adoption of the identity framework
DegenHive integrates a suite of DeFi primitives, generating protocol fees that are distributed as yield to governance participants proportional to their voting power. These primitives are designed to enhance liquidity, facilitate trading, and incentivize adoption of the protocol.
Liquid Staking on Sui Network: DegenHive allows users to deposit SUI in exchange for degenSUI, which represents the tokenized version of staked SUI earning staking yield for users.
Automatic Market-Maker (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 and Movement M2 chain:
Passive Concentrated Liquidity (PCL): Allows for efficient, low-slippage swaps between tokens with varying price correlations.
Stableswap: Supports swaps between stable assets with minimal slippage
Weighted: Facilitates swaps between assets irrespective of price correlation
These pools facilitate low-slippage token swaps and include native flash loan support and cumulative price calculations, enabling the construction of Time-Weighted Average Price (TWAP) oracles for traded assets.
HiveAsset NFTs Marketplace: DegenHive supports in-built marketplace which facilitates HiveAssets trading and borrowing activities p2p among users, with trades being settled in degenSUI on Sui network and in MOVE on Movement M2 chain.
DeFi yield for increased network security
Aa mentioned above, DeFi primitives accure protocol fees as degenSUI on Sui Network, which has the following long-term impact on protocol dynamics and network security -
Increased Security: As DegenHive gains traction and trading volumes escalate, the aggregated fees enhance the overall robustness of the network.
Governance Participation: Users engaged in DegenHive governance accrue staked SUI as yield, amplifying their influence within the Sui network’s governance.
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