Pumpkin Finance Joins Hercules Launchpad Blitz!
Hercules is delighted to announce Pumpkin Finance as a Launchpad Blitz Partner! Launching during our March Launchpad Blitz, Pumpkin will also enter the Olympic Circle to foster deeper and more efficient liquidity for the entire Metis ecosystem, and an even better user experience.
The PUMP Token Generation Event and Sale will be hosted on Hercules! PUMP, Pumpkin Finance’s native token, is the representation of revenue shares on the Pumpkin ecosystem, in which holders earn profits by staking and providing liquidity to the system, and are entitled to vote on governance decisions within the protocol. Details on this launch will be found on Pumpkin Finance’s site and in socials.
With white glove support and deeply customizable launchpad, Hercules is the ideal place to launch on Metis. Because Pumpkin will launch during our Genesis Pool event, Hercules will exclusively host Pumpkin liquidity and incentivize it.
Pumpkin Finance + Hercules
While Heroditus failed to mention it in his endless volumes, Hercules loved pumpkin pie. Several thousand years later, Hercules is excited to be reunited with his favorite gourd-based dessert!
Pumpkin Finance is a native liquidity provision protocol built for the Metis L2 network. Unlike many other protocols, Pumpkin provides a one-sided liquidity layer to any ERC-20 token on top of any well-known decentralized exchange by using a collateralized debt position in conjunction with an omnipool. Woah.
In its first stage, Pumpkin will be built on top of Hercules, which at its inception will launch several liquid v3 pools. For practical purposes, Pumpkin will use wMETIS-m.USDC as the most highly-liquid pool of the Hercules ecosystem. Each user that provides liquidity to the wMETIS-m.USDC LP will obtain an spNFT. This spNFT could be used to create a collateralized-debt position (CDP) in Pumpkin Protocol, which in turn will automatically mint tPUMP, the synthetic asset of the Pumpkin omnipool. tPUMP itself has no intrinsic value other than all the underlying assets of the protocol, but we expect to see new and creative ways of using it due to its highly liquid nature.
After launch, Hercules also provides builders like Pumpkin with the following tools:
- Unique AMM implementation that supports volatile and stable assets with dynamic fees
- A custom NFT wrapper for staked positions that allows LPs to be reused for further capital efficiency gains
- Genesis/Nitro pools allow protocols to permissionlessly incentivize liquidity based on custom requirements
- Innovative escrowed tokenomics (TORCH/xTORCH) that enable a more sustainable protocol that can capture real yield for holders
Hercules will use these features to provide deep, adaptable, and tailored liquidity for the Pumpkin team. The Genesis Pools would allow Pumpkin to carefully incentivize liquidity, allowing an efficient rewards structure for their PUMP token’s liquidity. By using the Hercules launchpad and Genesis Pools (i.e., Nitro Pools), we anticipate Pumpkin will achieve highly efficient returns on their liquidity while also bootstrapping critical infrastructure that benefits the entire ecosystem.
Busy At Maths: Looking a Little Deeper
Hercules was pretty smart, but let’s be honest — math hadn’t gotten that far two thousand years ago. Pumpkin Finance, however, gets into the math real deep.
AMMs, LPs, and staking protocols have been widely used throughout the crypto ecosystem since inception. This is due to their simplicity and straight-forward, permissionless liquidity provision for new assets created on-chain. Regardless of its widespread adoption, interacting with LPs, and staking itself, are not financially efficient and far from a flawless experience.
Several protocols such as Uniswap have improved LPs from V2 to V3, introducing range orders and one-sided liquidity provision. However, improvements are still not as efficient as hoped. Newer projects find it quite hard to build new and strong liquidity pools without giving up initial incentives.
Pumpkin attempts to solve this issue by building a single-sided LP protocol (SSLP) for staking assets, without the need to provide stable USD-pegged liquidity.
Pumpkin’s architecture comprises a Virtual Omnipool, a Tail Manager, and a Stabilizer Pool.
The omnipool is a set of liquidity pools (tails) linked by a synthetic asset (tPUMP). It does not handle any assets on its own, but instead has the capability of deploying new tails and managing the relationship between all the created tails. It can be deployed on top of any V2 and V3 AMM with little to no modifications.
Tail Managers are the main entry point for user flow in the Pumpkin ecosystem, as they are the only contract the users interact with when depositing and managing liquidity. When a user wants to deposit liquidity in a tail, they will only provide a Tail Asset and then the linking asset tPUMP counterpart will be minted based on two parameters. The tail manager then holds the Liquidity Position on behalf of the user and issues a receipt of the position. The user will be able to interact with the position as if they are actually holding it, and the tail manager will benefit from any additional features that the AMM implements on top of the liquidity provision such as liquidity mining, boosting rewards and most importantly, swap fees.
The Stabilizer Pool is a reference stabilizer pool created during the deployment of the linking asset, tPUMP. This pool’s main purpose is to provide a continuous reference for the liquidity available across all tails and maintain a healthy collateralization between all the assets circulating in the omnipool and the available USDC (or equivalent in wMETIS). The stabilizer pool will act as just another tail, with the only difference being it will also be responsible for handling tPUMP minting.
Lastly, tPUMP acts as the synthetic liquidity counterpart for each tail created; it has no underlying value apart from the assets deposited in the protocol which could be more or less liquid in other markets. As it is impossible to measure and aggregate all other liquidity sources, there must be a stabilizer asset that acts as the main liquidity source for tPUMP. That token will be USDC in Pumpkin V1 and the actual tPUMP price should be considered the fairer price and is expected to be arbitraged between all other assets in the omnipool.
What’s Next
Watch Hercules and Pumpkin Finance socials very closely for details on the Pumpkin launch and subsequent Genesis Pool.
About Pumpkin Finance
Pumpkin enables users to provide liquidity to a universal liquidity pool (Omnipool) using only a single asset on top of AMMs — unlocking the yield opportunities in DeFi liquidity provision for everyone.
About Hercules
With a composable, efficient liquidity protocol featuring seamless swaps, staking, real yield, and a launchpad, Hercules aims to become the native liquidity layer for the Metis network. Its flexible features are tailored to protocol-owned liquidity, allowing dynamic fees and customizable incentives packaged in a user-friendly interface.
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Launchpad Disclaimer
IDOs are a high-risk investment activity. There is a chance of capital loss. Investors are strongly advised to do their due diligence. Tokens are not intended to constitute securities in any jurisdiction and Hercules materials do not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. Please note that trading cryptocurrencies involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary.
Tokens sold via Hercules Launchpad are directly sent to the purchaser, funds collected belong to the Project and are used at their discretion.
