#2 Investment Proposal - Honeypot

Investment Proposal
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1. Project Summary

Token Information (if applicable)

  • Token Ticker: $HPOT
  • Token Type: ERC20
  • Explorer Link: TBD
  • Total Supply: 500,000,000
  • Current Circulation Supply: N/A
  • Smart Contract: TBD
  • Audit Report: TBD
  • Market Cap: $25.5Mm

2. Team

Executive Members

  • Wilson (CEO)
  • Taki (CTO)

History and Milestones

  • Q3 2022: Among the first to launch on the innovative L1 Berachain.
  • Q4 2022: Introduced an automated liquidity pool incentive scheme via DAO contracts.
  • Q2 2023: Won ETH Shanghai hackathon with Batch A2MM protocol.
  • Q3 2023: Introduced the Fair Token Offering (FTO) model.
  • Q1 2024: Refined the Flywheel Model to align with Berachain.
  • Q2 2024: Released a new testnet with improved UI/UX.
  • Q3 2024: Developed custom hooks extending the FTO model.
  • Q4 2024: Launched a $4 million incentive plan.
  • Q1 2025: AI Agents and bots integration of Pot2Pump for meme trading.

3. Business

Business Status

Project Description
Honeypot Finance enables users to launch meme coins, become LPs, co-own meme IP, and earn long-term yields, while solving common bonding curve issues like high selling pressure and incentivization, with secure trading and rewards on Berachain.

Problems to Solve
While Pump.fun leveraged a bonding-curve mechanism during a super-meme cycle, it faced notable challenges:

  • Bot Exploitation leading to fund losses
  • Low Launch Success Rates
  • Lack of Liquidity Provider Incentives
  • High Sell Pressure causing quick losses for late investors

To overcome these issues, we developed Pot2Pump, a fair-liquidity meme launchpad. Pot2Pump combines the strengths of the FTO model with crucial updates designed specifically for meme tokens.

Project Features
There are two main phases in the Pot2Pump meme launch process:

  • The Pot Phase: the pre-dex phase where users “pot” funds in their desired memetokens
  • The Pump Phase: the successful meme token launches that reach the $20,000 raise threshold and graduate to the dex.

The Pot phase :
When a meme token is launched via Pot2Pump, it first enters the Pot Phase. Here’s what happens:

  • Raise Token Deposits: Users deposit the raise tokens - such as $WBERA, $HPOT, $HONEY, or $HENLO - into the Pot2Pump system.
  • Cooking LP Positions: The Pot Chef “cooks” LP (liquidity pool) positions, allocating liquidity based on the amount of deposited raise tokens. There are two possible outcomes from this position:
    • The Raise Reaches the $20,000 Threshold
      • Liquidity Is Added to Wasabee DEX: deployed through the Algebra Integral concentrated liquidity mechanism.
      • A POGE Vault Is Created: vault uses Aquabera’s ALM (Automated Liquidity Manager) solution to manage price ranges and optimize transaction fee collection for LPs.
    • The Raise Token Does Not Reach $20,000 Threshold
      • Refund: Users can visit their profile to claim a full refund of their deposited tokens.

The Pump phase :

Once the $20,000 threshold is met and the meme token graduates to Wasabee DEX, participants in the Pot Phase can claim their position in the newly established POGE Vault. Key steps in this process involve:

  • Converting Positions: the original ERC-721 NFT position is converted into an ERC-20 position within the POGE Vault.
  • Earning Opportunities:
    • High APY Transaction Fees: earn fees generated by trading activity.
    • Partner Yields: enjoy additional rewards through integrated partners.
    • BGT Emissions: if the meme token is whitelisted, participants become eligible for BGT (Berachain Governance Token) emissions.
  • LP Ownership Breakdown:
    • 50% to early participants in the Pot phase
    • 40% LP locked in InterPoL
    • 5% to token deployer
    • 5% to platform

Advantage compared to pump.fun

1. Technical Burn of 40% of LP Tokens—Without Losing Yields

Before entering the DEX phase, Pot2Pump locks 40% of the liquidity in interPol. By effectively removing these LP tokens from circulation—but not renouncing the associated yields and incentives—Pot2Pump increases token scarcity, elevates price potential post-launch, and rewards early participants.

2. Refund Mechanism for Failed Launches

If a launch fails to meet its target ($20,000 threshold within 24 hours), users can pay only a gas fee to claim a full refund of their deposited tokens. This ensures low financial risk for participants, unlike Pump.fun, which offers no refunds for unsuccessful launches.

3. Lower Entry Barriers

When the raised amount reaches $20,000, liquidity is automatically added to the DEX. Pot2Pump also supports single-sided liquidity, further boosting token prices through the classic xy=k* model and making it easier for smaller investors to participate.

4. Protection Against Bots

Early-stage trading advantages are removed, ensuring a level playing field for all participants. Regular users can contribute with confidence, reducing losses caused by predatory bot activity.

5. Higher Rewards for Token Deployers

Instead of imposing a fee, Pot2Pump offers a 5% LP token incentive to token deployers, with the flexibility to adjust this rate. This is more beneficial than Pump.fun’s approach, which requires token deployers to pay a fee.

6. Real Liquidity and Higher Success Rates

Pot2Pump’s combination of real liquidity, reliable token locking, and a robust refund mechanism leads to higher success rates compared to Pump.fun. Early participants stand to gain significantly if the market cap surpasses $69,000 (the previous Pump.fun DEX deployment threshold) - effectively tripling the initial price. In contrast, Pump.fun saw 70% of participants facing losses at a similar stage in the process.

Key Achievements

  • Q1-Q2-Q3 2024: Successful launch of our NFT collection HoneyGenesis (+$2M in less than 2 days). Pre-seed, seed and strategic rounds closed. Testnet on Berachain with successful integration of the core principles of PoL (Proof-of-Liquidity).
  • Q4 2024: Successful public sale and pre-sale of Berally and Burrbear as Launch Partner on Fjord Foundry. Launched a $4 million incentive plan to support the Pot2Pump Meme Launchpad.
  • Q1 2025: Overlay public sale as Launch Partner on Fjord Foundry.

Competitor Comparison

  • Pump.fun: Current biggest meme launchpad from Solana but they are based on the traditional bonding curve model.
  • Memeswap: A Pump.fun fork, meme launchpad which uses the bonding curve model.
  • Ramen Finance: Traditional launchpad with fixed price model.

Tokenomics

Token Utilities

  1. self-deflation token supported by many bera eco partners (i.e pot2pump, berally, berascout).
  2. high yield token (stake HPOT to earn BGT, BURA and other ecosystem project token).
  3. real world usage that aligns with several depin projects.
  4. self-deflation token through the Pot2pump

Revenue Model

  1. regular Launchpad income
  2. meme launchpad income and including the protocols built for other project (i.e berascout)
  3. Dex Revenues
  4. Vault revenue (under development, similar like hyperliquid’s vault)
  5. AI agent launchpad revenue (under development)

Value to Kaia Ecosystem

  1. Can supply our models to the other kaia ecosystem project and we build shared revenue income
  2. Pot2pump is highly extendable smart contract backend model can be used to build different features (i.e Pot2pump LP version of daos.fun)

Business Plan

Marketing Strategy
To grow the community, we will incentivize Telegram participation with monthly token rewards for engagement, referrals, and activity. Exclusive updates, challenges, and AMAs will foster interaction and attract users. We build a cool Pottard meme culture that is liked by many Berachain users and we will continue to build the cult culture that gets us more engagement (14k Discord members, 66k X followers, 800 active TG users).

A testnet campaign will reward early adopters with tokens and showcase the protocol’s key features. Participants will be incentivized with leaderboards and future airdrop opportunities.

Collaborations with marketing agencies will ensure wide exposure. Campaigns will promote the protocol on crypto platforms, drive testnet participation, and leverage influencers through X spaces to build credibility and awareness.

Marketing strategies will focus on boosting token liquidity and accessibility, with meme-based campaigns further driving viral growth and community engagement.

Community Strategy
We have a strong user base with significant buying power, proven by our HoneyGenesis NFT raising over $2 million in just two days, making it the second-largest raise on Berachain.

To build a more successful community, we’re focusing on three key initiatives:

  1. Meme War Campaigns: Collaborating with top meme communities like OG Beras, Steady Teddy, Bulla, Cave, and more to boost engagement.
  2. Getting users regular utilities and perks (i.e steady teddy and Bullas WL);

Cross-Chain Outreach: Engaging with other Layer 1 communities to grow our reach.

Partnership Strategy
The Pot2Pump meme launchpad emphasizes partnerships in the Bot and AI layers, prioritizing solutions that can drive liquidity to our DEX.

For Dreampad (our traditional launchpad), through our collaboration with Fjord Foundry, we aim to provide greater support for their ongoing sales by hosting AMAs, developing frontend integrations, and connecting to their fixed-price and LBP pools.

We are actively engaged in discussions with over 200 ecosystem partners.

Backers

  • AC Capital, Dextforce, Mask Network, Sanyuan Capital, Web3Port, TKX Capital, Aquanow, Enigma (Berachain validator), Lavender (Berachain validator).

4. Industry

Market Overview

Berachain is gaining significant momentum and generating increasing hype. Upon its mainnet launch, it has the potential to rank among the top 10 in TVL. Berachain is not live but its pre-pre deposit vaults already cross $2bn in deposits through Boyco.

Potentials

As one of the lead protocols, we have huge potential.

5. Investment Overview

  • Type: SAFT(Simple Agreement for Future Token)
  • Investment Size: $50,000