Ama with HydraSwap
Introduction with HydraSwap
Q1. Can you tell us what is the motivation behind developing Hydraswap and why do you dub it as the Smartest DEX?
A public secret of our team is that our tech team developed and is running a CEX now.
We are DeFi investors and user's ourselves. We believe that in order for Decentralized Finance (DeFi) to scale and reach to the masses.
We need to solve the bottle neck for DeFi. It is a no-brainer.
Using a simple analogy, banking. Could you imagine going to a bank A and withdrawing $ and get out of the bank physically and go to bank B? THAT DOES NOT MAKE SENSE.
FOR BANKING TO SCALE, we need to solve the DeFi interoperability between chains. That's how SWIFT network have solved for banking and that's what we are hoping to solve!
We are solving the problem for the future of DeFi. That's what excites us everyday. To bring DeFi to the masses.
Q2. What is so special about Hydra Market Making ?
Hydraswap is a cross chain DEX on Solana
Our vision is to become a mega app that provides a one stop solution for liquidity providers and traders for managing and trading assets cross-chain.
Our edge will be creating a seamless cross-chain infrastructure, a game changing AMM market making algorithm and a slick & intuitive user interface that is going to greatly enhance the experience of traders & LPs alike and exceed that of CeXs.
We will be building our base DEX on Solana. With a TPS north of 50k and gas costs under 1c, we strongly believe that Solana is best placed for supporting a high frequency trading ecosystem.
HMM is our own algorithm but one of the biggest improvements is the “Compensation Parameter”. It increases Liquididty providers profitability and reduceds impermanent loss. This single factor will have the greatest effect
In HMM, we introduce a compensation parameter ‘c’ which controls how much LPs are willing to compensate arbitrageurs. By controlling this, we can improve the pnl profile of LPs and show that the expected impermanent loss is lower than that of the naive CPMM model.
HMM is an abbreviation of Hydra Market Maker.
Its core mechanism lies in introducing the oracle price as a reference to imitate the manual market making operations.
With HMM, funds will be concentrated around the market price and would provide high-quality liquidity in the same way centralized exchanges do.
Leveraging this, a higher utilization rate of funds and lower price slippage can be achieved.
the savings for liquidity providers can bee seen as the pink area.
Thanks for the wonderfully Detailed answers!!
Q3. Can you tell us about the Initial Hydra Offering and Hydraswap Cross Chain Bridge ?
IHO: Crowd Funding + Liquidity Pool Setup. IHO will offer both users and project teams a more flexible investment solution.
IDO (Initial Dex Offering): A way for new projects to initially supply its token to the public via a DEX.
In comparison to IEOs (Initial Exchange Offerings), IDOs are fully Decentralized and the prices are purely determined by the market.
- This has attracted the attention of projects and users alike. However, at present, IDOs continue to face several issues like speculator rush, lack of liquidity (2nd pool has to be built as a result), and more.
With IHO we will be integrating modules that will make the process smoother, fairer and more secure for both the projects and the investors.
Couple of examples are:
- We will enable a direct liquidity pool setup following the IDO. This will make it easier for projects while providing price stability for investors.
- We will enable an auction module with high and low price bands. This will enable a fairer token launch price for the project based on the token demand and investor appetite.
To mitigate risks for investors and to eliminate offerings from fraudulent projects, we plan on deploying our own innovative offering on HydraSwap dubbed IHO (Initial Hydra Offering)
HydraSwap bridge will be a trustless, decentralized and seamless mechanism for transferring assets cross chain. Assets on the originating blockchain would be locked and an equivalent amount of wrapped asset would be minted on the destination blockchain. When assets are transferred back then wrapped assets would be burnt and assets would be unlocked on the original chain. We will use a set of independent and decentralized nodes for validating the cross chain transfers.
Due to the natural boundaries between different blockchain networks, users could not directly swap their assets across chains. Some organizations adopt centralized solutions to bridge assets for their users, such as Binance.
However, it has a strict amount limit and the centralized handles apparently could not meet the expectations from the ever-growing DeFi market.
There are some decentralized cross-chain service providers on the market, but seldom of them has mature cross-chain solutions for Solana.
That is why we are going to build our Hydra Bridge to provide a seamless cross-chain swap experience for users.
With Hydra Bridge, users can enable a token to cross chain through only a few simple deployment steps.
When the deployment is done for a token, anyone can swap this token between the chains that the token has been deployed on. At the early stage, Hydra Bridge would support the bridges of Solana-Polygon and Solana-BSC. More blockchain networks will be supported as we progress.
We introduce a novel cross-chain stable swap mechanism using concentrated liquidity pools on both sides to enable greater liquidity while introducing market dynamics to the cross-chain transfer mechanism.
When a user transfers tokens from the original chain to Solana, we will mint a ‘stablecoin substitute’ and then fulfill the asset exchange process to a standard token using concentrated liquidity AMM.
LPs will be able to add liquidity in these bridge-liquidity pools with custom price ranges to achieve greater capital efficiency. This will decouple the transfer process vs ‘token standardization’ process on the target chain thus making the transfer process faster.
More importantly, this will also allow for a market based pricing mechanism to adjust for bridge traffic direction and immediacy needs of the users.
For more information and technical implementation of the cross-chain bridge, please visit: https://hydraswap.gitbook.io/hydraswap/#2-2-cross-chain-bridge
Hope this answer the question. Done!
Community take your time to read 📖
Q4. How do we acquire $HYS Token and why is it important to be held from an investment perspective?
There will be an IDO so stay tuned!
We have decided that we will be doing an IDO, but stay tuned for more details to follow.
The Token sale will be announced in soon. Stay tuned, there will be a few ways to get access to tokens at launch.
HYS is HydraSwap’s governance and utility token.
It's total supply is 100,000,000. HYS is an SPL token issued on Solana. Through our cross-chain bridge, it can be swapped for BSC, HECO, or ETH-based assets (or other public chain assets), etc
The $HYS token is a vital part of the DEX. It's how we give back to our users for building up the DEX, providing liquidity, staking, everything.
Some of the crucial components of HYS token:
2. Liquidity mining
3. Profit share via token buyback
4. Participation into Initial Hydra Offering (IHO)
So, long term HYS stakers get lots of advantages and benefits.
It's our way returning the value of this project back to the community
Q5. What are some of the biggest developments on track for completion this year for you guys ?
Before i forget, HYS is not just a governance token but also boasts a plethora of utilities. With HYS, a user would be granted the following rights:
1. Proposal and voting rights
2. IDO and crowdfunding quota on HydraSwap
3. Transaction fee discount
4. Transaction fee dividends
5. Governance rights
The pace of development has been incredible. There's a lot to be said about having the experience of building an exchange. Just this year, we've closed significant funding that will allow us to continue building for years, We're released an Alpha and Beta versions. And on the horizon at the end of this quarter is our cross chain bridge
We have been building at crazy pace!
Our DEX is live now
We have an extensive roadmap and are well on our way. Our Alpha 0.2 is out now our beta V1 is out now. This thanks to our 10+ person dev team, cranking out awesome tech.
You're right, we are building out features that are hot right now. And they are the foundation that allows us to build the next layer of operability.
Now the best part is how we're able to build so fast. Our CTO and our tech team has already built an outstanding CEX.
They used their knowledge there to build the HydraSwap DEX. That's why we can boast CEX level capability on a DEX.
That's what's beautiful about cross-chain capabilities. And the DEX is the 1st part of that. Now the best part is how we're able to build so fast.
More on our roadmap https://twitter.com/hydraswap_io/status/1402675746494062592?s=20
Community ask questions from Twitter
Twitter question no 1.
From : @Hirushi68835598
Do you think the DEFI ecosystem has a positive outlook? Given the recent market price decreases, I'm curious as to what the team thinks about this. And there are already a slew of DEFI systems; what sets HydraSwap apart?
DeFi is a beast. Good luck to whomever tries to stop it. Not only is it growing from resources, talent and finances flowing from TradFi but centralised systems in cytro are being decentralised.
There's no where to hide
It's the most robust and resilient system I've seen in my life and I'm happy to be apart of it
1. We are ALL-IN on DeFi. Ayush, our core-team Product Lead comes from JP Morgan and a 12 years seasoned veteran in options trading.
IF tradFi is coming in, be rest assured, the market will only grow. And DeFi is eating TradFi lunch.
2. Price volatility is normal in crypto. Nothing to bother at a short run. In fact, if the price do not correct, we are more afraid that this will be a bubble. It is healthy!
3. Because of our understanding on how liquidity provider, derivatives trading works. We have actual options trader from JP Morgan working full time in the core team.
In Asia there's been huge trend, a second wave of aggregating technologies that were developed in Silicon Valley. And what China, Singapore and Indonesia was aggregate those technologies into Superapps. Facebook, linked with banking, linked with Uber, and continuing to grow
This is the long term vision of HydraSwap. To be able to support DeFi in all aspects.
Twitter question no 2.
From : @UmmeHab53626731
What are the ways for your project to generate revenue in the long run? What is the progress of business development and what are some of your commercial partnerships?
Revenue is generated mainly through
1) fees from trading
2) fees from minting and burning of assets on the Cross-Chain Bridge
1. Same as any DeX and platform. Trading fees from liquidity pools.
2. We are working closely with Solana ecosystem.
3. We are also working closely with Polygon/Matic's team.
These suffice to not only bring the project to a profitable level, but allow us to reinvest heavily in building additional tech
Twitter question no 3.
From : @Ozigielsan
What are your status regarding the audit of your project and security mechanisms to protect and assure the participants of the ecosystem?
Lst one in this segment
We are in discussion with several auditors such as Zokyo, Hacken, Certik, Beosin and more.
We will be doing a thorough audit and publish results publicly before our official launch.
We take security very seriously at Hydraswap. Sercurity is our absolute priority. We will also be auditing our contracts before each and every release to make sure the security of funds for both traders and liquidity providers.
All the codes are available on blockchain. It is transparent and immutable.
Well done. We will see a good future!
Community ask questions from Website
Website question no 1.
In the HydraSwap tokenomics I could not see that you dedicate a specific percentage of your supply to marketing, which is a very important aspect in any project. How exactly do you expect to finance this aspect of your project?
Telegram Username: @shitosan
Ecosystem Fund --- 12%
Used for sustainable community incentives and ecosystem development, including incentives to community partners, cross-chain bridge notaries and other ecosystem cooperative partners.
This is the marketing budget
Beyond that , we provided additional allocations to influencers and supportive partners to assist in growth
This is from our private round
Website question no 2.
Hydraswap has launched its beta vesion. What are the main differences from the alpha version? Do you have a referral program? What are its rules and rewards?
Telegram Username: @albertjaison
Alpha released our algorithms and smart contracts.
The big differences are the HydraSwap Market Maker algorithm and deployment of our own liquidity pools,
We do have a bug bounty program now!
We'd love your help!
You can find the rules to the Bug Bounty Program here: https://hydraswap.medium.com/hydraswap-beta-bug-bounty-program-90c2ad96567
Website question no 3.
Hydraswap took the good choice of use Solana as base, due its amazing technology, but apart of it I realized that you’re compatible with Ethereum and BSC, so is this just the beginning to add more EVM compatible chains?
Telegram Username: @JoanaZ
Obviously EVM 1st.
3. ETH/Layer2 (Optimism, Arbitrium)
Thus, the need for cross-chain bridge seamlessly.
Live Questions answered by HydraSwap
Do you have a Token Burning plan to increase Token value and attract Investors to invest?
1. Yes. We have several mechanics to ensure token price is stable and not dump.
Here are some example:
1. Staking with burning mechanism
2. Locked staking for super VIP users
3. Burning yield when withdrawal early.
4. Profit share via token buyback.
2. Our initial market cap is also low at $198k on TGE. Lowest so far comparing to other DeXs
Regarding the Initial Hydra Offering, does IHO have a mechanism to determine quality projects? How does Hydra minimize the possibility of a rugpull project?.
1. The quality of the project will be seriously vetted by the team
2. The community and stakers will also have opportunity to make decision on this process as well.
The market around solana is currently small, however it has a lot of potential. Do you think that in the rest of 2021 we will see a great adoption and take-off of said network?
The market in Solana is small and it needs big players. No projects are open source at the moment and we aim to be the 1st. Some one needs to lead the way, and we are enthusiastically declaring that it will be us. Solana has massive potential, but it's up to projects like ours to bring it out.
Does Hydra Swap have product modules such as the Defi referral program or arbitrage and what is the function and use of the $HYS token in the Hydra Swap ecosystem?
HYS is not just a governance token but also boasts a plethora of utilities. With HYS, a user would be granted the following rights:
1. Proposal and voting rights
2. IDO and crowdfunding quota on HydraSwap
3. Transaction fee discount
4. Transaction fee dividends
5. Governance rights
HydraSwap also supports the recording and utilization of referral relations.
Users on HydraSwap earn token rewards for inviting others, and they get bonus rewards if his/her invitee participates in an IDO or liquidity mining.
We believe this program can effectively help accelerate the community expansion and foster user growth on HydraSwap.