How It Works？
HOTFI is a decentralized finance (DEFI) platform that operates based on the Ordinals protocol and the EVM (Ethereum Virtual Machine) protocol. It focuses on providing a comprehensive solution for BRC20 standard tokens, aiming to enhance trading efficiency, liquidity, and user experience within the cryptocurrency ecosystem. Here's a summary of how HOTFI works:
Protocol Foundation: HOTFI is built upon the Ordinals protocol and utilizes EVM for smart contract execution. These protocols enable the platform to offer secure, transparent, and decentralized services.
Token Listing and Mapping: When a BRC20 token is listed on HOTFI, a Contract Factory is employed to generate a mapped ERC-20 token, ensuring compatibility and facilitating decentralized trading.
Decentralized Trading (Trade Module): HOTFI's Trade module provides users with peer-to-peer trading functionality. Users can create buy or sell orders for BRC20 tokens. The process involves mapped tokens, reducing transaction costs and congestion risks on the BTC network.
Automated Market Making (AMM): Through the Swap functionality, users can provide liquidity to LP pools using mapped tokens, supporting AMM. This enables users to participate in token swaps and liquidity provision.
Locktime Mechanism: HOTFI utilizes Ordinals' locktime method to lock BRC20 tokens for a specified duration. This approach can be applied both for user-centric actions (such as trading) and for token management strategies, promoting stability in the market.
Asset Management and Security: HOTFI collaborates with third-party asset management services to ensure the secure management of BRC20 tokens, safeguarding users' assets within the ecosystem.
Market Stabilization: The locktime mechanism and strategic token management contribute to market stability by preventing extreme price fluctuations due to excessive token movements.
Transparency and Verification: All transactions and actions are recorded on the blockchain, allowing users to verify their activities through transaction hashes, enhancing transparency and accountability.
DAO Governance: HOTFI involves the community in decision-making through DAO governance, providing users with a say in platform development.
In summary, HOTFI leverages Ordinals and EVM protocols to create a DEFI platform where users can trade, provide liquidity, manage tokens, and contribute to a stable and efficient market environment. Through its innovative mechanisms, HOTFI enhances the value proposition of BRC20 standard tokens and strengthens the overall DEFI ecosystem.
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