Hourglass Protocol Litepaper

Background

In the realm of blockchain gaming, the liquidity challenges surrounding Non-Fungible Tokens (NFTs) and ERC20 Tokens are incredibly important. During our exploration of both Web2 and Web3 gaming, we discovered a powerful solution called the Hourglass.

In the context of gaming, the hourglass symbolizes the passage of time and the limitations it brings. It acts as a time-measuring device that prompts players to complete tasks within specified time frames. The visual representation of the sand flowing through the hourglass captures the fleeting nature of time. Completing a full cycle often signifies significant developments or potential setbacks in the game. These time-sensitive challenges create intensity and drive progression, requiring quick and strategic decision-making from players. The Hourglass constantly reminds and pressures players within the gaming universe.

Inspired by this concept, we extended the idea of the hourglass to potentially solve the liquidity issues faced by NFTs. Venturing into new territory, the Hourglass Protocol utilizes cutting-edge technology to revolutionize our understanding and access to valuable digital assets. The protocol facilitates quick transactions and exchanges of NFTs and ERC20 within the blockchain gaming ecosystem. It creates opportunities for easy and efficient trade of NFTs, enhancing the user experience in the gaming world and the broader Web3 environment.

The protocol combines various features, including smart contracts, interoperability with DeFi platforms, advanced liquidity pool systems, cross-chain compatibility, and opportunities for token exchanges and yield farming. By bridging the gap between Web2 and Web3 gaming through the Hourglass protocol, we introduce an innovative frontier in the gaming world. It enables effective utilization of the blockchain for gaming, redefining how we understand and access digital assets. Hourglass Protocol is positioned to make a significant impact, not only in blockchain gaming but also in the broader realm of Web3.

Overview

What is Hourglass Protocol?

Hourglass Protocol brings a groundbreaking approach to token standards by implementing it directly on the blockchain. It provides a comprehensive range of functionalities that cater to the needs of developers and individual users alike. These functionalities include the ability to create and launch assets, establish hourglass periods, seamlessly convert assets between different forms, and easily exchange binary assets such as NFTs and FTs.

By supporting the launch of ERC-404A assets, Hourglass Protocol ensures compatibility with older asset protocols like ERC20 and ERC721. This means that existing assets utilizing these protocols can also participate in the Hourglass Protocol. Users have the freedom to add liquidity providers on their own, connect to the Hourglass Protocol, and conduct trades on platforms like Uniswap.

Hourglass Protocol

Hourglass Protocol allows users to define a specified period of time during which certain actions or transactions related to the hourglass assets are restricted. The periods can be beneficial in scenarios where users want to prevent excessive volatility or manipulation of the assets. It provides a mechanism for ensuring stability and promoting a more controlled trading environment.

The logic supports not only different-level users but also considers concepts like transaction mining. Through on-chain behavior snapshots, higher-grade users will receive more benefits.

Wrapping & Unwrapping

Wrapping & Unwrapping enables the conversion of different cryptocurrencies through hourglass assets. This functionality allows for increased interoperability and seamless integration with ERC-404A, ERC721, and ERC20 assets. Users can convert their existing assets, providing them with more options and flexibility when it comes to participating in the ecosystem of the protocol.

Binary Asset Exchange Ratios Of NFT&FT

Users can exchange one asset for another at a predefined exchange rate. The use of binary asset exchange ratios simplifies the trading process and facilitates liquidity within the protocol. It ensures that users can easily swap between different assets without needing to rely on external exchanges.

Features

• Increased Accessibility: Hourglass Protocol lowers the barrier to entry for investors interested in high-value digital assets.
• Enhanced Liquidity: Hourglass Protocol significantly improves the liquidity of NFTs. It transforms otherwise illiquid digital assets into smaller, more tradeable units, facilitating easier buying and selling on various marketplaces.
• Diversification of Investment Portfolio: Investors can diversify their portfolios by acquiring Tokens of multiple NFTs, reducing risk exposure compared to investing in a single, high-value asset.
• Democratization of Asset Ownership: This protocol democratizes the ownership of valuable digital assets. By allowing multiple individuals to hold a share of a single asset, it shifts control from a few large holders to a wider group of small investors.
• Price Discovery Mechanism: Hourglass Protocol aids in the efficient discovery of an asset’s price. As assets are bought and sold in the market, their price movements provide real-time data on the underlying asset’s value.
• Innovative Use of Blockchain Technology: The protocol represents an innovative application of blockchain technology, showcasing its potential beyond cryptocurrencies to include asset management and ownership distribution.
• Reduced Transaction Costs: By enabling the trade of smaller asset units, the protocol can lead to reduced transaction costs. This is particularly beneficial for retail investors who might be deterred by the high costs of transacting large digital assets.
• Flexibility in Asset Management: Investors have greater flexibility in managing their holdings.
• Creation of New Markets and Opportunities: Assets open up new markets and investment opportunities. It paves the way for the creation of niche markets within the digital asset ecosystem.
• Improved Asset Utilization: By breaking down an asset into smaller units, the utilization of that asset is optimized. It allows for more efficient use of the asset’s value, as different parts can be used for various purposes simultaneously.
• Enhanced Security and Transparency: Leveraging blockchain technology ensures high levels of security and transparency in transactions. The decentralized nature of blockchain makes the ownership and transfer secure and easily verifiable.
• Encouragement of Community Participation: The protocol fosters a sense of community among asset holders. This can lead to collaborative decision-making regarding the asset, enhancing community engagement.
• Potential for Automated Compliance and Regulation: Smart contracts can be used to automate compliance with regulatory requirements, making the management of assets more efficient and reducing the risk of legal non-compliance.
• Opportunities for Creative Financing Models: Assets can lead to innovative financing models, like crowd-funded investments in high-value assets, which were previously inaccessible to the average investor.
• Facilitation of Micro-Investment Trends: The protocol aligns with the growing trend of micro-investments, allowing individuals to participate in the investment market with minimal capital.

Tech Workflow

The user leverages Hourglass Protocol to mint NFTs and subsequently acquires ERС20 tokens that are safeguarded by a smart contract. The quantity of ERС20 tokens obtained by the user is determined by the value they transfer, which is a percentage of the NFT’s value. Hourglass Protocol has developed a mapping system facilitating the exchange of ERС20 tokens for NFTs and vice versa, enabling seamless transactions between users and the project.

Product

Unwrap/Wrap NFT

You can acquire the corresponding ERC20 Token by unwrapping your wrapped NFT; or you can wrap the NFT with the corresponding ERC20 Token.

We provide two options for unwrapping:

1. Instant Unwrap: Unwrap your NFT for ERC20 tokens immediately, although it will charge 20% of the ERC20 token you should acquire.

2. Normal Unwrap: Unwrap your NFT for ERC20 tokens completely, but please note that there is a 24-hour waiting period before you can claim the tokens.

We provide two options for wrapping as well:

1. Instant Wrap: Wrap your NFT with ERC20 tokens immediately, although it will charge an extra 20% of the ERC20 token.

2. Normal Wrap: Wrap your NFT with ERC20 tokens completely, but please note that there is a 24-hour waiting period before you can claim the NFT.

Trading

Coming soon.

Token

NFT name: Hourglass

Token name: HGP

Supply: 800

1 Hourglass NFT = 1 HGP Token

• 600 NFTs will be sold via official website IDO (whitelist mode).
• The project will reserve 200 NFTs, with 60 packaged as tokens for liquidity pool addition on Uniswap, and the remaining 140 owned by the team.

Roadmap

Q1 2024:

- Introduce Hourglass Protocol’s Dapp, incorporating Exchanging and farming features.

- Initiate the Referral Incentive program.

Q2 2024:

- Expand Partnerships and Collaborations.

- Integrate with more DeFi Protocols.

- Establish an Integrated Marketplace.

Q3 2024:

- Expand the Hourglass Protocol’s ecosystem.

- Implement Cross-Chain Transaction integration.

Q4 2024:

- Launch Layer 2 Scaling Solutions.