HydraDX’s killer feature— Hydrate your treasury
HydraDX is a cutting-edge decentralized exchange (DEX) that introduces a unique single-sided concentrated liquidity Automated Market Maker (AMM) model called Omnipool.
This innovative approach allows users to swap assets or provide liquidity more efficiently compared to traditional DEXes. In Omnipool, all supported assets are paired with the native token, LRNA, which always accounts for 50% of the pool’s value.
The Omnipool is a single liquidity pool that holds all assets within the network in one place. Unlike conventional XYK models that have pools with pairs of assets, the Omnipool contains everything against LRNA, the hub token. LRNA is used in every single trade, channeling assets like DOT to HDX through LRNA.
The Omnipool allows for greater efficiency by holding all assets together, rather than having to hop between pools and split liquidity. For example, if you have $10 million in DOT, it can be utilized for any trade, allowing the platform to scale quickly and efficiently as more assets are added.
As the Total Value Locked (TVL) continues to grow, the Omnipool can achieve the same level of efficiency in most trades as any other conventional AMM, even without reaching extremely high TVL levels.
OTC Tradooooor
Another notable feature of HydraDX is the OTC (Over-the-Counter) functionality, which operates as a peer-to-peer market or a proto-order book. This feature allows other protocols and users to place orders to exchange assets based on their desired values. For example, HydraDX was considering how to include IBTC in the Omnipool and decided to have the protocol itself place an order, incentivizing users to fill it with a slight premium.
The team has big plans for the OTC feature, envisioning it evolving into a proper order book with advanced execution capabilities such as limit orders and trading limit order books. This is already be enhanced with the recently launched Dollar-Cost Averaging (DCA) feature which is aims to improve execution prices for users buying or selling assets over time, allowing everyone to trade like a pro.
DAO to DAO model — Hydrate Your Treasury
HydraDX leverages the power of Polkadot and XCM, allowing treasuries to be their own liquidity providers. Typically, when providing liquidity, you need to have a matching amount of tokens in a pair, which can be costly. However, XCM enables you to send a portion of your treasury through on-chain governance, put it in the Omnipool as liquidity, and maintain full custody. This process eliminates the need for fees, allows you to earn fees instead of losing them, and provides a trustless, fully governed process for liquidity provision.
Traditional methods of listing and market-making involve extensive paperwork and trust in centralized entities. However, HydraDX optimizes this process through a series of XCM calls, streamlining the experience and reducing reliance on centralized parties.
HydraDX’s vision goes beyond just optimizing liquidity provision. The team aims to flip the lifecycle of crypto projects and DAOs (and potentially non-crypto projects) by ending the vicious cycle of value extraction by traders or centralized exchanges. They plan to recycle value back into DAO treasuries, allowing them to earn fees on liquidity and even disrupt traditional treasury management. This approach enables projects to safely dollar-cost average (DCA) part of their treasury into cash, stablecoins, or real assets during bull markets, ensuring they have the necessary funds to survive bear markets.
In conclusion, HydraDX aims to revolutionize the way crypto projects and DAOs manage their treasuries and liquidity by providing a trustless, efficient, and innovative solution. By doing so, they hope to contribute to the long-term stability and success of the broader crypto ecosystem.
Learn more about HydraDX
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