Hydra joins a handful of blockchains that provide DEX capability (Ethereum BSC and Polygon) by taking this step. EOSTron, Solana, and now also Hydra
Hydra is the next big thing.
HydraThe launch of the chain was at the end 2020. Since then, its price has increased by more than 1000%. The multiple campaigns helped the chain establish a solid node infrastructure. It now has more than 500 validators all over the globe.
Actors currently enjoy around 80% APR, which the team behind Hydra calls the “seed stage incentive” for early adopters.
The ecosystem has grown significantly in the short time since its creation. At the moment, five projects are under construction on Hydra chain.
- Locking(blockchain-based travel market that offers up to 60% savings on hotels)
- GoMeat(Specializing meat delivery app – currently in ICO phase)
- Evedo(Online ticketing platform to some of the most important events in the world)
- Webjet is the second-largest travel provider in the world, and Rezchain (blockchain based reservation verification technology)
- Hydra DeFiecosystem
But ambitions are not set at an end.
Why Hydra DEX could overwhelm the ecosystem
The communityIt has been long anticipated that the DEX launchIt is an important step in the ecosystem roadmap. This allows projects to build strong liquidity pools and greatly improve trading experience. Hydra’s Hydra chain will make it easier for new projects to succeed – they can access capital markets and global liquidity in just a few clicks.
This is great news, but Hydra’s team also has plans for existing projects on alternative chains like Ethereum and BSC.
A new app called “Hydra Bridge”is currently in development and aims to create an easy-to-use cross-chain gateway between Hydra & Ethereum. A targeted liquidity extraction program is also being created that will significantly increase the APR of Hydra liquidity pools. High APR pools have been very successful in attracting capital.
Combining the bridge and the liquidity extraction program should result in a constant flow capital from Hydra’s most popular chains, strengthening its position on global markets.
The DEX holy grail
Current DEX applications like Uniswap and Pancakeswap share a very serious problem. Trader’s interaction with liquidity pools means that both the balances and the status of each pool are constantly changing. This is why liquidity providers who want to make a profit off trading fees run a high risk of getting into trouble. They may have a different mix of assets. Initial filing.
This is because the risk is not random but systematic. Liquidity providers are always on their losing side, which means that liquidity providers are always at the losing end. The question isn’t whether they lose but how many. And if trading costs can compensate for losses.
This phenomenon is known as impermanent loss, and liquidity providers are familiar with it. Hydra DEX claims that they are working on a solution to impermanent loss. Hydra DEX could play a significant role in space if the final result is as expected. Will they capture the “holy grail” of all DEXs? We will find out in the future!
Liquidity that is one-sided
Another problem that liquidity providers face is that you cannot deploy both sides simultaneously with most DEX applications. The LP must therefore invest in both assets and have double exposure. Hydra DEXThe team claims they have a solution but is keeping their cards firmly closed for now.
If this is successful, it could open up a lot more potential as holders of various tokens or coins could make their assets profitable without having to worry about the pool. For stablecoins and fixed-supply tokens, a low 5–10% APR may be attractive to the crypto community.
What do you think about the potential of Hydra chain? This strategy could help him reach the top. Comment below to share your thoughts.
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