HoneyPlay AMM

The Liquidity Engine of the Financial OS

The HoneyPlay AMM is the liquidity engine of the Financial OS, providing efficient token trading with support for multiple curve types (Curved, Stable, Weighted) while abstracting taxes, fees, and rewards into clean, composable swaps.

Designed for self-sustaining digital economies, it’s the only AMM on Sui that natively supports the Token primitive. That means true tax-aware trading: per-operation taxes (buy/sell, add/remove liquidity, transfer, spend) execute inside swaps without breaking composability.

Token creators can encode deflation, protocol revenue, treasury accumulation, and creator rewards directly into market activity — every trade feeds the economy and funds its own growth.

📦 What Makes It different? Traditional AMMs focus on simple swaps. HoneyPlay's AMM is optimized for taxed, economy-native tokens that fund their own expansion:

• Taxed Token Support: The only AMM handling Sui's Token primitive with per-operation taxes—e.g., sell tax burns supply, buy tax funds creators—without extra steps.

• Creator Incentives: Dynamic fees (1-3% based on market cap) paid in SUI/ggSUI, aligning builders with growth.

• Trader Rewards: HONEY distributed via fee-weighted points, rewarding real trades over spam.

Key Differentiators

Taxed Token Support	The only AMM handling Sui's Token primitive with per-operation taxes — e.g., sell tax burns supply, buy tax funds creators — without extra steps
Creator Incentives	Dynamic fees (1-3% based on market cap) paid in SUI/ggSUI, aligning builders with growth
Trader Rewards	HONEY distributed via fee-weighted points, rewarding real trades over spam
Treasury Pipeline	Protocol fees fund HONEY buybacks + growth initiatives (floor sweeping, AI marketing)

---

🔥 Key Highlights

1. Tax-Aware Design

The first AMM to handle taxed tokens natively — supporting configurable taxes across every operation:

Operation	Tax Applied
Transfers	Transfer tax
Conversions	To/from coin tax
Buys/Sells	Buy/sell tax
Liquidity add/remove	LP taxes
Token spending	Spend tax

Each tax is automatically routed to:

• Burns → Deflation

• Protocol → HONEY buybacks

• Treasury → NFT floor sweeping + AI marketing + growth

• Creator → Sustainable builder income

This enables self-sustaining tokenomics at the base layer.

2. Dynamic Fees & Creator Rewards

Fees adjust by token market cap tiers. Creators claim rewards in SUI/ggSUI — higher fees for smaller tokens help bootstrap, lower fees for established tokens encourage volume.

3. TWAPs (Time-Weighted Average Price)

HoneyPlay pools include built-in functionality for:

• Flash loans

• Cumulative price calculations

• TWAP oracle feeds for tokens traded on the protocol

The HoneyOracle uses these TWAPs to regulate HONEY emissions based on real market data.

4. Financial OS Integration

The AMM is deeply interlinked with every major protocol component:

AMM Swaps
    │
    ├── Generates fees → Split across Creator / Protocol / LP
    │
    ├── Triggers HoneyTax → Burn / Creator / Treasury / Protocol
    │
    ├── Feeds HoneyJar → Trading activity converts to HONEY rewards
    │
    ├── Informs HoneyOracle → TWAP data adjusts emission rates
    │
    └── Funds Treasury → Floor sweeping + AI marketing + growth

The result: Swaps generate fees → fees trigger taxes/rewards → treasury funds growth → HONEY incentives drive activity → higher volumes boost yields.

💸 Fees, Taxes & Distribution

On each swap, value flows to multiple destinations:

1. Creator fee (tiered, SUI/ggSUI) → goes to the token’s creator bucket

2. Protocol fee (fixed % of AMM fee) → 50% Treasury / 50% HONEY buyback.

3. LP fee (remainder) → stays in the pool for LPs.

4. Token taxes (if enabled) → split across burn / protocol (Honey tax) / creator / Treasury (NFTs market-making) per that token’s config.

User Swap (1000 tokens)
        │
        ▼
AMM Fee Applied (e.g., 0.3%)
        │
        ├── Creator Fee (tiered %) → Creator's SUI/ggSUI bucket
        ├── Protocol Fee (fixed %) → 50% Treasury / 50% HONEY buyback
        └── LP Fee (remainder) → Pool reserves
        │
        ▼
HoneyTax Applied (if enabled, e.g., 5% sell tax)
        │
        ├── Burn (30%) → Tokens destroyed
        ├── Protocol (20%) → HONEY buybacks
        ├── Creator (20%) → Creator rewards
        └── Treasury (30%) → Growth fund
                │
                ▼
        Treasury Deployment (Phase 2)
                │
                ├── Floor Sweeping → Auto-buy NFTs
                ├── AI Marketing → LifeOrDream Studio
                └── Compute → Infrastructure costs

---

🍯 How Incentives Work

HoneyPlay's AMM incentives reward traders based on real economic contribution, not spam:

Core Mechanism

Principle	Implementation
Fee-weighted	Traders earn HONEY based on SUI/ggSUI fees actually paid
1:1 accrual	Points accrue 1:1 with fees during active cycle
Cycle-based	Weekly (7-epoch) cycles allocate HONEY budget
Pool-proportional	Each pool's share based on its fee volume

Quick math

• Pool share: pool_fee_points / total_fee_points × cycle_HONEY

• Trader share (per pool): trader_fee_points / pool_fee_points × pool_cycle_HONEY

🏁 Incentive Cycle: Start → Aggregate → Allocate → Claim

• Cycle length: 7 epochs (~weekly).

• Start: Keeper claims cycle HONEY from Manager (Oracle-governed rate) and pauses point accrual.

• Aggregate: Each pool adds its fee points to the global total.

• Allocate: Pool gets pool_points / global_points × cycle_HONEY; then points reset.

• Claim: Traders claim per pool. Users must clear their previous cycle before earning new points

Why This Design?

• Fee-weighted, not volume -> Rewards actual economic contribution

• Real flow rewarded -> Pools with genuine trading get more emissions

• Anti-spam -> Tight slippage + realistic sizes = fair HONEY share

• Sustainable -> Oracle regulates total emissions based on HONEY/SUI price

---

🔮 Treasury → Growth Pipeline

The AMM's protocol fees don't just sit idle — they fund automated expansion:

Phase 1 (Live): HONEY Buybacks + Treasury

Protocol Fee (50% of AMM fee portion)
        │
        ├── 50% → HONEY Buybacks (supports token price)
        └── 50% → Treasury (accumulates for deployment)

Phase 2 (Upcoming): Automated Deployment

Treasury Accumulates
        │
        ▼
Deployment Triggers
        │
        ├── Floor Sweep Budget → Marketplace auto-buys NFTs
        ├── Marketing Budget → LifeOrDream Studio API
        │       │
        │       ▼
        │   AI generates promotional videos
        │       │
        │       ▼
        │   Auto-post to social platforms
        │
        └── Compute Budget → Infrastructure + new experiences

The result: Every swap contributes to an economy that markets itself and supports its own assets.

---

📋 Summary

The HoneyPlay AMM turns liquidity into a living system — where every swap:

Action	Effect
Supports creators	Dynamic fees in SUI/ggSUI
Funds treasury	Protocol fees accumulate for growth
Rewards users	Fee-weighted HONEY distribution
Strengthens HONEY	Buybacks from protocol fees
Enables growth	Treasury deploys to floor sweeping + AI marketing

In Essence

The HoneyPlay AMM is not just an exchange — it's the economic circulatory system of the Financial OS.

Every swap:

1. Pays creators → Sustainable builder income

2. Burns tokens → Deflationary pressure (if HoneyTax enabled)

3. Funds treasury → Growth budget for floor sweeping + AI marketing

4. Buys HONEY → Protocol fee buybacks

5. Rewards traders → Fee-weighted HONEY emissions

6. Informs Oracle → TWAP data for emission control

Balancing incentives, stabilizing emissions, and fueling growth through constant motion.