HoneyFarm: A Layered Deflationary Yield Farm Protocol
The HoneyFarm whitepaper was written and published by the HoneyFarm core team at the end of 2023, in the context of exploring sustainable yield models in decentralized finance (DeFi), aiming to address the common issues of impermanent loss and short-term incentives in existing DeFi yield aggregators.
The theme of the HoneyFarm whitepaper is “HoneyFarm: Next-Generation Sustainable Yield Aggregation and Liquidity Mining Platform.” HoneyFarm’s uniqueness lies in its proposal of “dynamic yield pools” and “tokenomics rebalancing” mechanisms, optimizing asset allocation and risk management through smart contracts; the significance of HoneyFarm is to provide DeFi users with more stable and long-term yield opportunities, and to promote the sustainable development of decentralized finance.
The original intention of HoneyFarm is to provide DeFi users with a safe, efficient, and sustainable yield aggregation platform. The core viewpoint stated in the HoneyFarm whitepaper is: by combining “multi-strategy yield optimization” with “community governance-driven risk control,” to achieve a balance between maximizing returns and minimizing risks, thereby realizing the long-term appreciation of DeFi assets.
HoneyFarm whitepaper summary
What is HoneyFarm
Friends, imagine you have a fertile piece of land where you can plant various crops to earn returns. In the blockchain world, this way of “planting” and earning yields is called Yield Farming. HoneyFarm is a “digital farm” like this, operating on the Binance Smart Chain (BSC), a fast and low-cost blockchain, aiming to let everyone earn more digital assets by providing digital assets (such as cryptocurrencies).
Simply put, HoneyFarm is a decentralized finance (DeFi) project. Decentralized Finance (DeFi) is like a financial system without banks or intermediaries, where all transactions and rules are written on the blockchain, open and transparent. In this “farm,” you can deposit your cryptocurrency, just like sowing seeds in the ground, and it will “farm” for you, generating new tokens as rewards. The HoneyFarm project is abbreviated as BEAR, but in fact, it has multiple tokens, with BEAR being one of them, just like different crops produced at different stages on a farm.
Project Vision and Value Proposition
When launching this project, the HoneyFarm team saw problems in many DeFi projects at the time, such as excessive token inflation leading to value decline, and some projects suddenly “rug pulling,” causing investors to suffer losses.
Their vision is to create a fairer and more sustainable yield farming platform. They hope to solve the problem of token inflation through a “layered” mechanism and a clear token issuance plan, allowing investors to know in advance when tokens will stop being issued, so they can better plan their investment strategies. It’s like a farm owner telling you before sowing how much grain the land can produce and when harvesting will stop, so you have a clear idea instead of investing blindly.
Technical Features
The core technical feature of HoneyFarm is its Layered Yield Farming model. It’s like a farm that doesn’t plant all crops at once, but plants different crops in batches and seasons. Each “layer” represents a stage and issues different tokens.
The project runs on the Binance Smart Chain (BSC), a blockchain supported by Binance, known for its fast transaction speed and low fees. This allows users to enjoy a more efficient and economical experience when operating on HoneyFarm.
Tokenomics
HoneyFarm’s tokenomics is its most unique aspect, adopting a Deflationary Tokenomics and Layered Tokens design. This means the project doesn’t just have one token, but multiple tokens, and each token has a limited supply, aiming to combat inflation.
- HONEY: This is HoneyFarm’s first layer token, like the first batch of crops on the farm. Its maximum supply is 24,650, and issuance stops after a specific block height.
- BEAR: This is the second layer token, which is also the “BEAR” in the project’s abbreviation. It starts issuing after HONEY, with a maximum supply of 30,800.
- MOON and BEE: The project later launched tokens like MOON and BEE, representing different layers. Typically, tokens from the previous layer can be used to “farm” the next layer’s tokens, providing investors with diversified investment strategies.
The goal of this design is to make token value more stable, as the supply is limited, and through this progressive layering, encourage users to continuously participate in the ecosystem.
Team, Governance, and Funding
According to available information, HoneyFarm was created by a group of “blockchain enthusiasts.” The team previously operated projects like SatisFinance and LazyMint, claiming these projects reached a total value locked (TVL) of $65 million, with no “rug pull” incidents.
In terms of governance, the project aims to promote “community-driven decision-making.” However, it’s worth noting that according to CoinSniper, the project has not undergone KYC (Know Your Customer) verification or audit. KYC (Know Your Customer) refers to verifying user identities to prevent money laundering and other illegal activities. Audit refers to third-party security companies checking smart contract code to discover potential security vulnerabilities.
Roadmap
HoneyFarm’s roadmap is mainly reflected in its “layered” launches, with each layer representing an important stage in the project’s development:
- July 30, 2021: HoneyFarm project launched, first layer token HONEY began issuance.
- Subsequently: Second layer token BEAR launched, HONEY can be used to farm BEAR.
- Around September 6, 2021: Third layer token MOON launched.
- After MOON: Fourth layer token BEE began issuance, HONEY, BEAR, and MOON can all be used to farm BEE.
This layered mechanism itself is a continuous plan, aiming to maintain community activity and investor interest by continuously launching new “farms” and tokens.
Common Risk Reminders
Investing in any cryptocurrency project comes with risks, and HoneyFarm is no exception. Here are some risks to pay special attention to:
- Project Activity and Official Information Loss Risk: According to DappRadar’s report, the HoneyFarm Finance - HoneyBee project has been marked as “inactive,” and its official website or domain may no longer be accessible. Although other platforms still list its website, this uncertainty is a significant risk. This means the project may have stopped operating or maintaining, making it difficult to obtain the latest and accurate information.
- Unaudited and Un-KYC Risk: CoinSniper points out that the project has not undergone third-party security audits, and team members have not completed KYC verification. This means smart contracts may have undiscovered vulnerabilities, and the identities of team members are not public, increasing the risk of “rug pull” or technical issues.
- Token Concentration Risk: The top ten holders of HONEY tokens hold up to 91% of the supply. This high concentration means the actions of a few large holders (whales) could have a huge impact on token prices, with the risk of massive sell-offs causing price crashes.
- General DeFi Project Risks: Yield farming projects usually come with impermanent loss, smart contract vulnerabilities, market volatility, and other risks. Impermanent Loss refers to the situation where, due to token price fluctuations while providing liquidity, the total value of assets you withdraw may be less than the total value you initially deposited.
- Not Investment Advice: Please remember, the above information is for educational and informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, so be sure to make investment decisions independently after fully understanding the risks.
Verification Checklist
When researching any blockchain project, here are some key pieces of information you can verify yourself:
- Block Explorer Contract Addresses:
- HONEY token contract address:
0xFa363022816aBf82f18a9C2809dCd2BB393F6AC5(can be checked on BscScan)
- BEAR token contract address:
0xc3EA...3FEdc1(can be checked on BscScan)
- HONEY token contract address:
- GitHub Activity: CoinPaprika lists the project’s source code link as github.com. You can visit this link to check the frequency of codebase updates and community contributions to assess the project’s development activity.
- Official Website: honeyfarm.finance. However, note that DappRadar reports this website may no longer be accessible.
Project Summary
HoneyFarm is an early decentralized yield farming project launched on Binance Smart Chain, which attempts to solve common inflation and project sustainability issues in DeFi through its unique layered tokens and deflationary mechanism. It introduced multiple tokens such as HONEY, BEAR, MOON, and BEE, and designed a mechanism where tokens from the previous layer can be used to farm the next layer’s tokens, aiming to provide more stable returns and a longer project lifecycle.
However, according to the latest information, the project may be inactive, and its official website may be inaccessible. In addition, the project has not undergone KYC verification or third-party security audits, and token holdings are highly concentrated, all of which increase investment risk. For any users considering participating in such projects, it is strongly recommended to conduct thorough independent research (DYOR) and fully understand the significant risks involved. Please remember, this is absolutely not investment advice.
For more details, please research independently.