We are happy to announce the release of the Hydranet DEX ATLAS version — a DEX with a built-in wallet, off-chain ramp, and Lightning support! This is yet another milestone for the Hydranet organization and will be the final testnet version before the Hydranet DEX is launched on the mainnet. This article will cover some of the features added to the ATLAS version of the Hydranet DEX, hopefully making you even more excited about the mainnet release.
For our newcomers: The Hydranet DEX is a Layer 3 cross-chain DEX that utilizes Layer 2 protocols (Lightning Network and Connext) to allow low-fee, trustless, cross-chain swaps between BTC, ETH, LTC, HDX, and other assets. All this on one platform!
ATLAS Features
Let’s find out what ATLAS has to offer! Besides dozens of minor improvements and bug fixes, we were able to add major features to the Hydranet DEX as well. Below, we have created an overview of the most relevant updates and additions to this version of the DEX.
Arbitrum Network
The most significant feature is probably the integration of the Arbitrum Network. The Arbitrum Network is an Ethereum Layer 2 scaling solution (rollup), built on top of the Ethereum blockchain. It has a much higher transaction throughput than the Ethereum Network and is therefore generally much faster and cheaper than the Ethereum Network. With the Arbitrum Network integrated into the Hydranet DEX, the users will experience fast and cheap onboarding to Connext’s bridging technology*.
*Connext offers fast and secure bridging of assets between blockchains and rollups (Layer 2 solution).
Chainlink Price Feed
The Hydranet DEX has a built-in wallet. The dollar value of this wallet will be determined by price oracles, in our case, the decentralized oracle networks powered by Chainlink. Please note that the market prices in the DEX will solely be determined by the existing limit orders and not by the chainlink price feed.
Goerli Testnet
The ATLAS version of the DEX, and the Ethereum-related part of it, is now running on the Goerli testnet. The Goerli testnet was the final Ethereum testnet to switch to the proof-of-stake consensus mechanism before the Ethereum Merge took place. As the old Ethereum testnets (Rinkeby and Ropsten) are getting depreciated, all future Ethereum testing will take place on the Goerli testnet. In other words, the Hydranet DEX is fully compatible and ready for future testing, even with Ethereum 2.0.
Connext Watchtower and Channel Disputes
The MCLW now fully supports the Connext dispute flow and can act as a watchtower for Connext disputes. In the short term, the MCLW can now protect the user in case something goes wrong with the payment channels. A user can settle a channel on-chain without the hub being online/responsive. And if a channel gets disputed, it will automatically send the channel state to the on-chain smart contract and withdraw all user assets from the channel.
Read more about the Connext dispute flow here:
We have also started implementing a Connext watchtower that can run on an external server. This means that the user will still be protected against problems with payment channels and can dispute a channel, even when the MCLW is offline.
Market Maker Bots
The Hydranet team is very proud to have implemented Market Maker Bots ready to operate 24/7. This is essential as it allows users to test and trade on the Hydranet DEX without any particular activity from other users.
HDX added as a tradeable asset
The Hydranet DEX needs of course its governance token to be added as a pair too. This is not only essential for our HydraLord community but will also be one step closer to decentralization of the Hydranet token, HDX
Work-in-progress features:
We would also like to shed some light on two major features being worked on by the Hydranet team. These features are live in their initial versions in the developers’ applications, but they are not yet bug-free. Therefore, we will not include them in the initial ATLAS version of the Hydranet DEX. When the features are working sufficiently, they will be updated without needed interaction from the user. Expectations are that this will occur within a few weeks after the ATLAS release.
Taker-pays-Maker fees
This is one of the unique features of the Hydranet DEX. Liquidity providers (makers) are getting paid to offer liquidity on our DEX. A portion of the trading fee gets distributed to the person who placed the limit order.
Connext DEX Fee Refunds
This improvement helps in the following situation: if a trade fails, the user will get the trading fee he paid for posting the order (now failed) back.
Where can I download the ATLAS version?
You can download the current version of the open beta from the DEX download page: https://hydranet.ai/en/dex
On the download page, you will find both a Windows version and a Linux version.
Do you need help?
If you need a hand with finding your way around the wallet or if you want to better understand the DEX buttons and tabs, we have created the following Video tutorial for you:
Testnet related issues
The ATLAS release is still a testnet version. It will receive constant updates based on user feedback. We highly appreciate your recommendations for improvements and also bug reports. Please report these in our Discord.
If you plan to use the ATLAS testnet version (which we strongly encourage), we want to inform you about a phenomenon called Bitcoin block storms. This phenomenon can arise when, for instance, a miner is mining blocks too fast, which in turn will cause the Lightning Network to fail as a security precaution. ATLAS testnet users may experience this by not being able to open a BTC channel, rent via BTC, or trade BTC at all. Unfortunately, there is not much to do to solve this situation other than to wait. The Bitcoin testnet usually recovers after 20 minutes, but sometimes it can take more than an hour. Importantly, this will not happen when the Hydranet DEX is launched on the mainnet.
To check the current status of the Bitcoin testnet, please visit: https://tbtc.bitaps.com/
You might also experience a flashing red warning, this is due to missing support for some testnet data from our provider — the warning will also not occur on Mainnet.
Another thing is, again related to testnet — Arbitrum Transactions are shown as pending in the DEX UI. This will not be the case on Mainnet.
What’s next?
The main priority as of now is to get the Taker-pays-maker and Connext DEX fee refund features working! Along the way, we will adjust the DEX according to the feedback we receive from the community. As previously stated, the ATLAS release is the final testnet version before the Hydranet DEX is launched on the mainnet.
Before we go into mainnet, Connext and Lightning watchtowers need to work flawlessly. We also have to implement a client reputation system to prevent failing / malicious clients / DDoS. The PHOENIX release will for the first time enable users to trade real assets on the Hydranet DEX. Therefore, looking forward, PHOENIX will be our next major milestone and we are of course trying to improve the UI and UX significantly for this release.
The mainnet release is dubbed PHOENIX and is aimed to be released in 2023. Stay tuned, Hydrachads! The adventure has just begun.
To stay updated or ask any questions you have: Join us on Discord and follow us on Twitter to stay up-to-date with our latest news and developments.
Make sure to check out our website: https://hydranet.ai
