Decentralized Futures: Humidefi, Teleport/Bridge and Uniswap-type DeFi for gamers in Xode

By leveraging Substrate’s interoperability, runtime customization, cross-chain communication, security, and scalability features, Humidefi can effectively bring easy-to-use and understandable DeFi services to Polkadot’s ecosystem. This enables broader access to decentralized finance, fostering financial inclusion and innovation within the Polkadot network.

In July 2022, the Humidefi team participated in the Polkadot Hackathon North America Edition, clinching the 3rd place position in the DeFi category. Following this achievement, our team embarked on an intensive journey to construct a parachain. Our efforts culminated in the successful development and launch of Xode, a Web3 Gaming parachain, within the Kusama network. Leveraging this foundational infrastructure, our focus is now directed towards augmenting its utility. This includes the integration of a DeFi service capable of teleporting tokens from the Asset Hub. By doing so, we aim to enhance liquidity and usability within Xode, thereby attracting a broader audience to the realm of Web3.

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Details: DF Details Humidefi - Google Docs

Teleport

Create a connection between Xode and the Asset Hub Parachain within the Kusama network. Upon establishing this bridge, we will employ the XCM protocol to facilitate communication between Xode and the Asset Hub Parachain bidirectionally. Within these messages, we will delineate the specifics of the asset teleportation process, including the asset type, quantity, destination address on Xode, and other relevant details.

Liquidity

The liquidity provider will deposit asset pairs into the liquidity pool. If the pool already exists, Humidefi will determine the current price based on the Price Curve of the pool. The provided quantity will then be added to the pool, and Humidefi will mint a liquidity token corresponding to the pool based on the provided quantity. As the current price has been injected, adding liquidity does not alter the Price Curve.

Swap

The initial step in executing a swap involves selecting a trade pair, achieved by specifying the input and receiving tokens. Following this selection, the quantity of the receiving token is automatically calculated using the injected price, reduced by a 3% fee. Subsequently, the quantity of the input token is added, and the quantity of the receiving token is deducted from the liquidity reserve. A recalculated price is then determined based on the Price Curve, with the fees being credited to the balance of the liquidity pallet address.

Redemption

Once the 60-day holding period has elapsed, you have the flexibility to redeem the Liquidity Pool Token at any time. Upon redemption, you’ll receive an equivalent pair quantity based on the current price established by the Price Curve, along with a share of the fees. Partial redemption is also an option.

Ecosystem Fit

Humidefi’s integration into the Polkadot ecosystem is strategically aligned with the network’s core principles of interoperability, customization, security, and scalability. By leveraging Substrate’s robust framework, Humidefi is positioned to offer accessible and user-friendly decentralized finance (DeFi) services within Polkadot’s ecosystem.

Furthermore, Humidefi aims to enhance Xode’s utility by integrating a DeFi service capable of teleporting tokens from the Asset Hub. This initiative is poised to enhance liquidity and usability within Xode, attracting a broader audience to the realm of Web3 and further solidifying Humidefi’s position as a key player within the Polkadot ecosystem.

One of the key advantages of Humidefi is its integration with Xode, which boasts a robust Web3 Gaming presence through XGame. This integration offers a unique opportunity for game developers to access faster liquidity and seamlessly adapt to decentralized finance (DeFi) solutions.

By leveraging XGame’s strong Web3 Gaming infrastructure, Humidefi provides game developers with streamlined access to liquidity, enabling them to quickly monetize their gaming assets and transactions. This faster liquidity flow accelerates the growth and development of gaming projects within the ecosystem, empowering developers to focus on creating immersive experiences for their users.

Future Plans

In the short term, Humidefi is focused on driving adoption through its integration with the XGame platform within Xode. This strategic initiative aims to provide immediate liquidity to game tokens, enhancing the user experience by enabling seamless token teleportation, swapping, and transfer functionalities. Additionally, users will have the opportunity to participate in liquidity reserves and earn yields, further incentivizing engagement within the ecosystem. During periods of non-utilization, Humidefi will prioritize enhancing existing features while introducing new functionalities such as staking, loans, and other DeFi products to enrich the platform’s offerings.

Looking ahead to the long term, Humidefi’s vision encompasses the creation of a dedicated Parachain and utility token, UMI, exclusively tailored for its ecosystem. To facilitate this ambitious endeavor, Humidefi plans to leverage decentralized token raises, such as Polimec, or other reputable platforms to secure the necessary funding. By establishing a dedicated Parachain and utility token, Humidefi aims to solidify its presence within the decentralized finance landscape, fostering sustainable growth and innovation within its ecosystem.

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Awesomeness! I’m super excited to jump in and contribute to the project.

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This is Great!, I am excited to this opportunity to become involved in this project and make meaningful contributions towards its success.

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It’s been a long time coming, from July 2022 to the present! Humidefi is moving in the right direction. Can’t wait to see real-world solutions to real-world problems via Humidefi decentralized finance leveraging on real interoperability that can only be found in the Polkadot ecosystem. In the immortal words of Timbuk 3, with Humidefi, “the future’s so bright I gotta wear shades!”

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It’s evident that the integration of Humidefi with the Polkadot ecosystem, especially through its collaboration with Xode and XGame, holds immense potential. The idea to enhance liquidity and usability within Xode while providing streamlined access to DeFi services for game developers is something the ecosystem is lacking.

I’m particularly impressed by Harold’s role as the founder of this project. Him and I were classmates at PBA Hong Kong, and I had a chance to get to know him and his team on a personal level. They are devoted and will see any project through.

I believe that with Harold’s leadership and the strategic initiatives outlined in the proposal, Humidefi is poised to make a significant impact within the Polkadot ecosystem. The short-term focus on adoption and enhancing features, coupled with long-term plans for a dedicated Parachain and utility token, demonstrates a clear roadmap for sustainable growth and innovation.

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Absolutely! I’m thrilled about the opportunity to be involved in such a worthwhile project. I’m committed to delivering high-quality work and contributing to its success.