Hydro Protocol HOT

$0.0086
Market Cap $ 6.039 MM (#476)
24h Volume $ 243.898 K
Chg. 24h: -3.37%
Algo. score 2.1/5  (#1334)
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Hydro Protocol project purpose and description

Hydro Protocol clarity of purpose

Hydro Protocol purpose and aspects

Decentralized exchanges offer trustless non-custodial trading, improved transparency, and inter-exchange sharing of liquidity. Despite these fundamental advantages, decentralized exchanges today account for a negligible percentage of the overall transaction volume. This lack of adoption is due to a combination of several factors: barrier to entry, performance and usability issues, susceptibility to arbitrage, and a 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 the mechanism for order matching. Hydro utilizes 'Federated Liquidity Pools' (FLP) to address the issue of liquidity sharing among various decentralized exchanges.

Hydro Protocol additional differentiation against competition

The issue of liquidity sharing amongst decentralized exchanges is both a technical problem and an economic one. The Hydro Protocol Token exists to facilitate and coordinate the formation of shared liquidity pools

Hydro Protocol categories

Decentralized exchange

Short description

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 the mechanism for order matching. Hydro utilizes 'Federated Liquidity Pools' (FLP) to address the issue of liquidity sharing among various decentralized exchanges.

Abstract

Decentralized exchanges offer trustless non-custodial trading, improved transparency, and ability to share order books. Despite these advantages, decentralized exchanges today account for a negligible percentage of the overall cryptocurrency transaction volume. Reasons for lack of adoption include high technical barrier to entry, performance and usability issues, availability, and lack of incentives for coordination. Hydro is a middleware layer on top of an incentive system for decentralized exchanges.

Link to Roadmap: n/a
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