Lunacia Dungeon

Problem Statement

Lunacia Dungeon is an on-chain enabled, off-chain played dungeon-runner where gameplay directly powers a sustainable DeFi economy. Players buy a character to enter the dungeon; that purchase automatically routes into a Uniswap v4 Hook, adding real liquidity to the pool. The game itself runs off-chain using Yellow Channels for fast, gas-less, low-latency gameplay, with final results settled on-chain for fairness.If a player beats the dungeon, they keep their character and receive a payout in ERC-20. Rewards are backed by the liquidity generated from new entrants, creating a clean, circular economy: gameplay → liquidity → stable rewards → more players → more liquidity. No inflation, no speculative token printing — just a sustainable loop supported by real economic flow. Lunacia Dungeon blends Web2-smooth gameplay with verifiable Web3 settlement for a fun, fair, and economically sound gaming experience.

Solution

Lunacia Dungeon is built by combining Uniswap v4 Hooks, Yellow Network off-chain channels, and the Ronin ecosystem into a single architecture that merges DeFi liquidity with fast, verifiable gameplay.We use a custom Uniswap v4 Hook that receives player entry payments (when they buy a character) and automatically routes these funds directly into the liquidity pool. The hook manages fee routing, updates pool state, and tracks how much liquidity contributes to the reward budget. This allowed us to create a self-contained reward engine without minting inflationary tokens.Gameplay itself runs through Yellow Channels, which let us execute every dungeon action (movement, combat, pathfinding, RNG checks) off-chain with near-zero latency. Only the final result—win or lose—is settled on-chain, giving us Web2-level smoothness while preserving Web3 verifiability.