We are thrilled to present the 2024 roadmap update for the Hydranet DAO, outlining our ambitious plans and upcoming milestones in our journey to revolutionize decentralized trading and everyday crypto usage. Our goal is to support the unique needs of self-custody and seamless off-chain trading, providing users with a secure, efficient, and user-friendly crypto experience. With innovative and cutting-edge features, formed by diligent research, we are paving the way for the future of decentralized finance. Let’s take a closer look at what is currently under development and what other milestones lay ahead! The graphical overview will be followed by an explanation of each constituent item.
2024 Q2
Web3 Wallet
Cloud-based channel backup (using StorJ) — In progress
Currently in development is a cloud-based channel backup solution using a decentralized system solution for digital file storage named StorJ. This will allow users to access their wallet on multiple devices, for instance both on their mobile phone and desktop, without impairing their already open state channels. Without StorJ, or a similar solution for channel backups, state channels run the risk of being force closed if users access their wallets on multiple different devices, which is not particularly user-friendly.
Importantly, sensitive information such as seed phrases and private keys are not backed up on StorJ. These are kept on the users’ local machines, only known to the users, always! This means that user funds are always secure, even in the event of StorJ getting compromised.
Channel Rental Manager — Done (NEW)
The Channel Rental Manager is a solution used to increase users’ can receive state channel balances, i.e., the amount of funds they can receive through their state channels. This is essential for Hydranet’s off-chain trading capabilities and is an on-demand feature anyone can use at any time.
Web DEX
Orderbook API — In progress (NEW)
In short, an order-book API in a web-based decentralized exchange (DEX) manages the interaction between the user and the DEX orderbook. This tool will thereby help to deliver actions to everything involved in interacting with Hydranet’s orderbook; placing orders, removing orders, getting information about historic trades, information about available trading paris, information about trade fees, etc. It also includes the development of the database in which open orders are stored.
Orderbook Swap Engine — Planned (NEW)
A swap engine in an order book-based decentralized exchange (DEX) handles the execution of trades by matching buy and sell orders according to price and quantity. In Hydranet’s exchange, whenever someone places an order on the orderbook, the Swap Engine will scan through the current orderbook looking for a matching order. If a match is found, the Swap Engine will connect the two trading peers. If not, the order will be placed in the orderbook, waiting to be matched by another trader.
Lithium
Lithium v2: Multi-Hops — In progress (NEW)
Currently, Lithium v1 only supports single-hop transactions, meaning users can only send payments directly with a state channel counterparty. For instance, only from User 1 <> Node 1, as illustrated in the Single-hop case below. With Multi-hop transactions, users will be able to reach anyone in the network, with intermediate nodes acting as routers. This means that it will be possible to send payments from User 1 to User 8, using Node 1, 2, and 3 as routers.
Multi-hops are important for decentralization and will be the results of Lithium v2. Lithium v2 will thus enable multiple interconnected Hubs in the Hydranet network, powering the Hydranet DEX, to enhance the network’s resilience.
Lithium subgraph indexer — In progress (NEW)
The Lithium subgraph indexer continuously indexes transactions in the Lithium contract and maintains the state of all open state channels in its database. This improves the performance of Lithium as Lithium is not forced to inspect the entire blockchain with every contract interaction initiated by users.
Hashlock Payment Settlement — In progress (NEW)
The Hashlock Payment Settlement feature enhances the efficiency of off-chain payments by supporting multipath payments using hashlocks. Multipath payments are payments that are split into smaller parts and sent through different state channels before reassembling at the destination. Practically, this means that if a user has multiple open state channels with different amounts, they don’t need to worry about selecting a specific channel for their payment; all channels will be used simultaneously to fulfill the payment requirements.
Option to provide trustless channel liquidity as a Titan (hub) — In progress (NEW)
This feature allows Titans (hubs) to provide trustless channel liquidity, enabling secure and decentralized fund management within the Lithium network. This ensures efficient liquidity provision without requiring users to trust a central authority.
2024 Q3:
Web3 Wallet
External Signer
We are developing the world’s first external signer for Bitcoin and EVM off-chain transactions. External signers are specialized tools or software that handle the cryptographic signing of transactions outside the main application. This is typically how wallets such as Metamask and Ledger work. By keeping the signing keys (private keys) separate from the main application, external signers help to protect sensitive data from potential vulnerabilities within the application itself. This setup minimizes the risk of private keys being compromised and ensures that the signing process is more secure.
Merging of Web3 wallet into Web DEX
We are integrating the Hydranet Web3 Wallet into our Web DEX to provide seamless functionality. This merge will enable users to manage their digital assets and execute trades using a single web application.
Development of Simple UI for Wallet and DEX — In progress (NEW)
We are developing a simple UI for our Web3 Wallet and Web DEX to enhance user experience and accessibility. This effort aims to abstract the complexities of off-chain technology, making it easy for users to manage their assets, send and receive payments, and execute trades.
Mainnet release
We are currently developing on testnet, but our infrastructure is designed to switch to mainnet within one day. Achieving a mainnet release is a crucial roadmap goal, showing our platform is fully prepared for live, real-world use.
Web DEX
Simple Swaps interface — Planned (NEW)
One of our primary goals is to enable the orderbook to offer Simple Swaps, providing users with a Uniswap-like experience. This feature aims to streamline the swapping process, making it intuitive and user-friendly, by automating everything between opening of state channels to closing them.
Limit orders interface — Planned (NEW)
For more technical users, we will offer an orderbook with a corresponding interface that supports placing limit and market orders. This feature will enable users to implement dedicated trading strategies and have greater control over their trades.
Testnet release
Before moving to mainnet and using real funds, we need to integrate all components and enable trading on testnet. This crucial step ensures that our platform is fully functional and secure before the mainnet release.
Research
Possibility to release Hydranet’s External Signer as a Metamask “Snap”
In MetaMask, “Snaps” is a feature designed to expand the functionality of the MetaMask wallet through the use of third-party plugins. While Hydranet’s External Signer will be used for signing off-chain transactions in a secure manner, the feasibility of incorporating it into MetaMask will be researched. This would make it possible to interact with Hydranet’s application (Web wallet for sending off-chain payments and Web DEX for trading) using MetaMask.
Read more about MetaMask Snaps here: https://metamask.io/snaps
1 Confirmation Swaps — Planned (NEW)
We aim to reduce the waiting time for users by enabling Bitcoin swaps after just one blockchain confirmation, compared to today’s six blockchain confirmations. This will significantly speed up the trading process, making it more efficient and user-friendly.
0 Confirmation Channels — Planned (NEW)
We are exploring the possibility of 0 confirmation rental channels, allowing users to receive assets instantly without waiting for any blockchain confirmations. This could revolutionize the speed and convenience of trading on our platform.
2024 Q4:
Web DEX
Release external Hydranet External signer as Metamask “Snap”
We will release the Hydranet external signer as a MetaMask “Snap” to enhance the security and functionality of off-chain transactions within the MetaMask ecosystem.
Implementation of potential additional features
We will integrate new features based on user feedback to continuously improve the Web DEX experience.
Merging of Pro and Easy mode — Planned (NEW)
We aim to merge the Pro and Easy modes into a unified interface, offering a seamless experience for both novice and advanced users.
UI/UX updates
We will implement significant UI/UX updates to enhance the overall user experience and interface design.
Mainnet release
We will finalize the transition from testnet to mainnet, making the Web DEX operational for live, real-world usage.
Hydranet Explorer
We will develop and launch a comprehensive stats backend and frontend, providing users with detailed insights and analytics on trading activities.
Lithium
Get security audit
We will conduct a thorough security audit of the Lithium contract to ensure its robustness and safety before the mainnet launch.
Open-source Lithium code
We will open-source the Lithium code to promote transparency, collaboration, and innovation within the community.
Add more chains, also non-EVM chains
We plan to expand Lithium’s interoperability by adding support for additional chains, including non-EVM chains like Solana.
HDN Token
Testnet development of Hydranet DEX Network actors
We will develop and test the network actors (Titans, Guardians, LLPs) for the Hydranet network on testnet in preparation for expanding the network with more independent actors.
Get a security audit of the new Tokenomics smart contract
We will try to get a security audit of the new Tokenomics smart contract to ensure its safety and reliability.
Research
Referral implementation for Web DEX
We will explore and develop a referral system for the Web DEX to incentivize user growth and engagement.
Hydranet Software Development Kit:
We will create a development kit to facilitate the integration of Hydranet technology into various bridges and decentralized exchange aggregators.
Add more chains, also non-EVM chains
We plan to expand Lithium’s interoperability by adding support for additional chains, including non-EVM chains like Solana and other popular Defi Chains.
Achieved Milestones
Before wrapping up this roadmap update article, let’s also reflect over what we have achieved so far:
Web3 Wallet
The public testnet release, called NOVA, was a major success, expanding the testing base and gathering comprehensive feedback with over 100 participants. NOVA is still accessible here and is getting continuous updates. We have also achieved a proof of concept of the External Signer for BTC and EVM off-chain transactions. This feature will be getting more attention in Q3 2024.
HDN Token
A major update to the HDN tokenomics was successfully voted in: https://snapshot.org/#/hydranet.eth/proposal/0xf5e81fba4aef97188459bc010f633c884ccf4e6da52c1c1177f8bf07885e5860
Core DEX
We have expanded the Core DEX by adding new trade pairs and tokens, and we successfully launched the LSSD (Core DEX API). The Core DEX continues to demonstrate stability month after month, proving the reliability of our technology. We’ve been actively gathering insights to improve the platform and have rolled out several updates. This knowledge and technology are also being applied to the development of the Web DEX.
Research
We have been working on a visual cost analysis for the bridge use case of the Web DEX and published the results here. Hydranet will be cheap af!
We started conducting research on on-chain governance for the HDN token but came to the conclusion that dev resources are better spent developing the Web DEX.
Lithium v1
This is the current version of Lithium that we have developed over the past few months. Users can already do the following actions:
- Create a channel
- Deposit and withdraw from the channel
- Benefit from refactored and fee-optimized contracts, resulting in significant fee reductions compared to solutions like Vector or other off-chain protocols.
- Enjoy off-chain benefits: instant settlement, minimal fees, privacy, and lightning speed
Lithium v1 was made available for testing a few days ago to our closed beta testers! You can also watch our dedicated Lithium AMA here:
The roadmap will be updated accordingly on our website in the next few days.
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
