The HydraSwap HMM: Game-Changing AMM for Liquidity Providers

DEXes, AMMs and Traditional Market Makers

Hydra
Hydra
Aug 19 · 8 min read
The HydraSwap HMM: Game-changing AMM for Liquidity Providers

Limitations of Current AMMs

The current crop of AMMs is still way too simplistic when compared to their traditional market making cousins. The most popular form of AMM is the constant product market maker (CPMM), which arrives at ‘fair’ market prices by keeping the product of token inventory balances constant. It relies on arbitrageurs to step in and correct price misalignments with the broader market. In the process a lot of potential profits for passive LPs is left on the table. Sophisticated LPs that provide liquidity to AMMs do a lot of heavy lifting in the form of inventory management off-chain.

The HMM Vision

Hydra Market Maker’s (HMM) vision is to create an AMM that is on par with the performance of traditional MMs. HydraSwap runs on the lightning-fast Solana chain, which removes the computational and gas cost bottlenecks facing AMMs on EVM-based (Ethereum virtual machine) chains. HMM would be the first to utilize the full technical capabilities of Solana to provide a high performance AMM with significantly improved LP returns and a more reliable trading framework.

HMM Parameters
HMM Pricing Formula

How HMM Works with the Oracle Price

Oracles are data providers that get feeds from many markets and determine what the mid-market should be.

HydraSwap

Superior Cross-Chain DEX

HydraSwap

HydraSwap is an intelligent cross-chain DEX with superior liquidity and multi-module components based on the high

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Hydra

Cross-chain DEX on Solana, CEX-level trading experience, supported by game changing HMM core and powerful multi-module components.

HydraSwap

HydraSwap is an intelligent cross-chain DEX with superior liquidity and multi-module components based on the high