Hydro is an efficient decentralized exchange ecological alliance that connects all decentralized exchanges in the world. Hydro redefines the order execution rules of decentralized exchanges and provides a matching mechanism for shared orders. Hydro created the 'Federated Liquidity Pools' (FLP) mechanism to encourage decentralized exchanges to join. Through proof of equity, you can become a member of the shared liquidity pool. Conversely, by providing liquidity, the system will return HOT as an incentive.

Project Introduction

Hydro Protocol is an open source protocol designed for decentralized exchanges. The Hydro protocol includes a series of smart contracts, matching trading algorithms, developer tools and resource packs, completes cryptocurrency transactions through atomic swaps, and empowers developers to easily build high-performance decentralized exchanges. Using the Hydro Protocol, decentralized exchange developers can reduce the complexity and cost of designing, deploying and auditing smart contracts.

Project Highlights

Decentralized exchanges provide trustless, non-custodial exchanges for mutual exchange with increased transparency and liquidity. Despite these fundamental advantages, decentralized exchanges today account for a negligible percentage of total trading volume. This lack of adoption is due to a combination of several factors: barriers to entry, performance and usability issues, susceptibility to arbitrage, and lack of economic incentives for liquidity sharing.

Hydro is a network layer protocol for high performance decentralized exchanges and marketplaces with built-in incentives for coordination.

The Hydro Protocol (HOT) defines the rules for executing decentralized orders and provides a mechanism for order matching. Hydro uses the "Federated Liquidity Pool" (FLP) to solve the problem of liquidity sharing among various decentralized exchanges.

Application scenario

Centralized exchanges
Industry-leading exchanges are actively acquiring and investing in decentralized exchanges. Hydro enables existing platforms to easily connect their liquidity into a decentralized marketplace.

Upgrade your DEX
Older DEX protocols suffer from illiquid and inactive markets. Hydro provides your exchange with the core functionality traders and market makers need to thrive.

Powering DeFi Projects
Lending protocols, prediction markets, and countless other DeFi projects can use Hydro to easily build unilateral and multi-sided markets.

Multi-chain development
Hydro smart contracts are compatible with MultiChain from the beginning, allowing developers to capture opportunities on various blockchains

Related links:

https://www.chainnews.com/articles/308945002752.htm
https://www.bitmixc.com/project/204.html