HYDRA Pre-Airdrop Trading Setup

In this article we will examine the following questions:

• How much HYDRA will be released for liquidity/trading purposes prior to the airdrop distribution event?
• At what price levels will the HYDRA be released?
• How will any potential funds coming from this liquidity event be utilized to benefit the whole HYDRA community?

As outlined previously, the HYDRA blockchain project will be distributed via a 1:1 airdrop to LOC owners. This is so because HYDRA has been privately funded via the LockTrip fund that comes as a result of the crowdfunding that took place in 2017. HYDRA, despite being a completely independent project with a completely proprietary and powerful staking economy, is the result of the combined human, financial and technical capital that the LockTrip entity and community have accumulated over the last 3+ years.

In this post we want to remind everyone that the ERC20 migration will take place 2–3 months before the airdrop initiative in an effort to:

• Give LOC holders enough time to swap their tokens before the start of the airdrop. This will ensure that everyone can receive the full amount of the HYDRA airdrop.
• Avoid a situation where holders are pressured to rush the swap, possibly resulting in mistakes that would not have happened otherwise.
• Give holders enough time to setup their Hydra wallets and to read through the new developments.

Since the migration of the LOC token on top of the HYDRA blockchain comes as unprecedented in the context of a token being migrated on top of a blockchain prior to the same chain’s main supply distribution event, we will be releasing a very limited amount of HYDRA in the form of market-making liquidity on HitBTC as a debut listing, together with the swap.

This will enable users to buy and use HYDRA for gas purposes (because once you withdraw the swapped LOC onto your own wallet, you will need to have some HYDRA in order to cover transaction costs).

For the more enthusiastic users, this could also be an opportunity to grab a few HYDRA to get a feeling of how the staking experience works prior to the airdrop event.

And since we have received a number of requests about the details of the pre-airdrop HYDRA liquidity event, we are sharing the key insights below:

• 150,000 HYDRA fixed supply will be placed evenly in the order book: This comes to 0.8% of total supply to ensure we don’t create an overflow of HYDRA before the main distribution event.
• 100% of funds that come in as a result of debut-HYDRA sold during the liquidity event will be repurposed back in the form of liquidity market making. This means that if e.g. $50,000 worth is liquidated, we will circle back the $50,000 and use it as a market-making inventory in order to strengthen liquidity and thicken the order books. Having strong liquidity will make it much easier to buy and sell HYDRA, which will benefit all holders.
• The supply will be distributed evenly in chunks of 4,000 HYDRA per price level step.
• Each price level step will increment with a fixed 3% — this will ensure the price is defined by the market while offering gradual price options to choose from.
• The starting price level will be $0.70 and the trading pair used will be USDT/HYDRA on HitBTC.
• The order book will be static. Once orders are deployed they will not be changed for 7 days. After the 7th day, we will remove any orders that have not been fulfilled and will initiate the market-making system to repurpose all gathered funds in the form of liquidity.

NB! It is essential to understand that the open order book makes this a market-driven event. As the orders will be static, any other orders coming in from community members will have a direct impact on supply/demand and will influence the price discovery process.

To make things fully transparent, here is how the order book will look like and what its impact will be on the subsequent HYDRA liquidity:

The price starts at $0.7 and has a theoretical peak at $2.09. If the price surpasses $2.09, it will continue based on the natural supply and demand forces of the market, without an artificial expansion of the static order book.

Any amount that comes as a result of liquidating HYDRA during this pre-airdrop event will be used in full amount to strengthen and establish HYDRA’s liquidity.

For example, if HYDRA reaches $1.5 as a price, $113,986 will be raised. After the 7th day of the listing, all orders that remain unfilled (above $1.5) will be canceled. And the raised amount will be repurposed back into the order book in the form of advanced market making which will strengthen the liquidity around the spread.

The $113,986 will be used as market-making inventory on the USDT side, while we will use the income from the core nodes that sustain the network prior to the distribution event to double the inventory on the HYDRA side.

This will essentially mean that the combined liquidity in such an example would come to a total of $227,972 which will be broken down into cycles to strengthen the liquidity around the spread.

The more funds are generated, the stronger the initial liquidity of HYDRA will be as those funds will be used to establish the trading infrastructure. Any community activity on the order book will be on top of that base liquidity.

The target debut listing of HYDRA is set for Dec 2020 and we are waiting for our partners at HitBTC to confirm exactly. The swapping date for LOC is not dependent on this event and will be announced over the next few days.

Don’t hesitate to follow the new official Hydra Twitter :https://twitter.com/hydra_chain

And make sure to join Hydra’s Telegram https://t.me/hydrachain

Hydra is a truly decentralized POS (proof of stake) blockchain and emerged out of the combination of Bitcoin, Ethereum and Qtum. It unifies the best features of all three chains and carries a unique economic layer on top. This makes Hydra not only cutting-edge technology, but also enables a very strong shared economy of which all parties can benefit fairly.