FAQ on Hotpot Protocol
Are my staking assets safe?
The staking contract was adapted from SushiSwap’s MasterChef by removing liquidity migration functions. Therefore it’s impossible for anyone to move staking assets other than the original stakers.
All unstaking and emergency withdrawal functions have been covered in unit tests and UI tests. Despite our efforts, you should still take caution when interacting with dApps. The source code of the staking contract (YuanYangPot.sol) can be assessed here.
Are POT token balances elastic?
No, POT balances won’t change upon rebasing. POT rebasing only affects token production rate, which in turn affects the yield of assets staked in YuanYangPot.
POT is a standard ERC-20 token with owner-only minting function. We believe it’s safe for centralized exchanges and custodian wallets to keep POT for their customers.
What will happen when POT price rises above target?
The token production rate will rise proportionally to Price/Target. In addition, yields in White soups will rise faster than Red soups.
What will happen when POT price drops below target?
The token production rate will rise proportionally to Target/Price. This time yields in Red soups will rise faster than White soups.
However, the YuanYangPot might enter ‘Circuit Breaker’ mode. You will still earn POT but harvesting is suspended until price-peg resumes.
When will Circuit Breaker be turned on and off?
Circuit Breaker will be turned on if POT’s 24h average price is below 95% * target upon rebasing. If average price rise above 95% of target price, Circuit Breaker will be turned off upon next rebasing. Then users can harvest tokens they earned during Circuit Breaker.
Will my staking assets be locked during Circuit Breaker?
No, unstaking is always allowed regardless of Circuit Breaker status.
How are White and Red soups determined?
Pools are categorized as White/Red based on whether the staking asset contains POT. Therefore, POT and LP tokens on POT trading pairs are Red, other ERC-20 tokens are White.
Why does Hotpot adjust the production shares of Whites vs Reds?
White soups have higher share of POT production when POT price is HIGH. This will attract more external assets into Hotpot, expanding the TVL.
Red soups have higher share of POT production when its price is LOW and harvesting is suspended. This will encourage POT returning to be staked, reducing actual circulating supply of the token.
<more questions coming soon>
