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Alisa Davidson
Published: August 01, 2025 at 10:50 am Updated: August 01, 2025 at 9:41 am
Edited and fact-checked:
August 01, 2025 at 10:50 am
In Brief
Honeypot Finance is building an all-in-one DeFi liquidity platform on Berachain to automate liquidity management, incentivize trading, and expand multichain to enhance utility and innovation across the DeFi ecosystem.
At the recent Hack Seasons Conference in Cannes, Wilson Wu, founder of Honeypot Finance, a token launch platform on Berachain, discussed his all-in-one decentralized finance (DeFi) liquidity platform aimed at enhancing trading incentives, automating liquidity management, and increasing utility and innovation within the DeFi ecosystem.
Honeypot Finance functions as a comprehensive liquidity hub that integrates a main launchpad, additional launchpads, and a decentralized exchange (DEX), facilitating liquidity provision that supports token value creation and stabilizes token price flows.
Addressing DeFi Liquidity Inefficiencies: Automated Management And Swap Incentives Enhance User Engagement And Token Utility
The intended users for this solution are primarily within the DeFi sector. One identified issue in DeFi is the inefficiency of liquidity, as some teams launch tokens that are widely dispersed without sufficient utility, with DEXs being primarily used for token swapping and lacking additional use cases, which diminishes engagement.
Furthermore, current platforms largely focus on incentivizing passive total value locked (TVL), such as rewarding liquidity providers (LPs), while users who actively perform swaps are generally not incentivized.
However, it is possible to launch a meme token and trade it on the DEX, supported by an automated liquidity management system designed to assist users in managing their liquidity efficiently.
“This means they do not need to add liquidity themselves, withdraw it, or calculate price range changes. We manage it for the users so they can see the course rate and optimize their returns,” said Wilson Wu.
On the other hand, another product has been developed to directly incentivize users for swaps and trading activities. Each swap performed earns rewards in the protocol’s native tokens. This system also enhances the annual percentage yield (APY) for liquidity providers by incorporating dynamic features that encourage higher trading volumes, resulting in increased trading fees for liquidity providers as volume grows.
Honeypot Finance Advances Multichain Expansion To Drive DeFi Innovation And Utility
Most of Honeypot Finance’s current products in development are already being deployed on Berachain.
“We are seeking to vastly expand to multichain. The first step will be Monad. We are in discussions with the Monad Foundation to build an innovative product on their platform. We are also aiming to expand to Hyperliquid, Arbitrum, and Avalanche. Our goal is to collaborate with strong, innovative Layer 1s that truly bring DeFi to users.”
Looking ahead to changes in DeFi over the next year, Wilson Wu notes that the sector may remain largely static without innovation. It is expected that more diverse and engaging use cases will emerge. New participants entering the DeFi space contribute to its development, while experienced entities continue to drive innovation and enhance token utility. This focus on increasing practical applications is seen as essential for the growth and evolution of DeFi, helping to make the space more dynamic and interesting.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa Davidson
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
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