Earning Strategies

Method 1 (Liquidity Rewards): Adding Liquidity to HONO-USDC pair via DApp

A straightforward way to earn from the HONO Protocol is by adding liquidity to the HONO-USDC pair through our DApp. Our platform rewards liquidity providers in ETH. However, please note that income distribution is periodic, and liquidity providers should not expect to withdraw earnings on a daily basis.

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Method 2: Holding HONO the token

The HONO token is backed by wstETH, an asset from LIDO.FI that appreciates daily in ETH value. Even without an income stream, HONO's value would naturally increase over time. By incorporating income streams from various platforms and mechanisms we have built, we further accelerate HONO's value growth.

~~Method 3: Burn xHONO governance~~

~~We have received community feedback that some members are relying on our 1:1 xHONO-to-HONO burn mechanism.~~

~~Here’s how it works: whenever we distribute income, a portion is allocated to a 1:1 xHONO-to-HONO swap and burn pool. Members holding xHONO can choose to burn their tokens to receive HONO through this mechanism, subject to availability. For detailed information about revenue allocation, please refer to Emission-Directing Voting Mechanism and the live ratio on the Vote page on our DApp.~~

~~Caution:~~ ~~This conversion operates on a first-come, first-served basis, with safeguards in place to prevent bot activity. However, due to the competitive nature of this feature, we cannot guarantee consistent earnings for everyone through this method.~~

Method 3 (Voting Rewards): Staking xHONO to direct emissions to DAO or Reward Pool

Stake your xHONO to direct 10% of protocol income (“emissions”) between the DAO Pool and the xHONO Pool. The split is set by how much xHONO is staked to each pool. If you stake to vote for either of the pools, you’ll earn a share of the rewards, algorithmically time-weighted by amount and duration staked. The DAO Pool is currently accumulating as a treasury for future revenue-generating deployments. Rewards have no fixed schedule and payouts depend on overall platform performance.

The voting process is transparent and can be followed on the Vote page on our DApp.