Hydranet, a DAO with extensive experience in off-chain trade, has developed the Hydranet DEX, a Layer 3 trading platform that incorporates numerous off-chain protocols to facilitate trustless, low-cost, and nearly immediate cross-chain trading. After more than a year of development behind the scenes, Hydranet launched its DEX as a beta on the mainnet on September 23rd.
Hydranet promotes its DEX as a Layer 3 trading platform that facilitates bidirectional trading between the Bitcoin and Ethereum ecosystems. This includes all off-chain compatible EVM networks.
To get things rolling, the Hydranet DEX currently supports four initial trading pairs: aETH – BTC, BTC – aUSDT, HDN – aUSDT, and ETH – BTC. These pairs have proven the platform’s versatility by bridging between Bitcoin, Ethereum, and the Arbitrum (abbreviated ‘a’) blockchains. Furthermore, it only takes a few extra lines of code to add support for additional networks and currency combinations.
Hydranet is a low-cost trading platform that bridges among different blockchains without sacrificing security, integrity, or scalability, and it takes advantage of the benefits of off-chain protocols to do so. It is the first Layer 3 off-chain decentralised exchange, and it’s being built by a DAO. The debut of Hydranet DEX represents a watershed moment for the project, and its promising future holds the prospect of even more innovative advances.
“I am really proud of us. We have evolved from a small project to a currently #700 mature DeFi project with a great 2023/24 roadmap ahead,” said Joe Park, project manager of Hydranet.
Hydranet has enabled trading between fundamentally different blockchains with nearly no fees, near-instantaneously. That’s not all-it does this, based on trustlessness, and users will always retain full control of their funds by employing off-chain protocols like the Lightning and Connext Vector technologies.
Key to this approach are what are known as off-chain protocols, which are a collection of rules, standards, and frameworks for executing transactions off-chain using state channels. The platform employs Hashed TimeLock Contracts (HTLC) to ensure that all trades on the exchange are executed exactly as agreed upon, or are not executed at all if any party attempts to manipulate the trade in any way.
In contrast to on-chain transactions, which require confirmations from miners, off-chain transactions are characterised by low or no transaction fees, high levels of privacy and trustless operations, as well as super-fast transaction speeds. These features make off-chain transactions ideal for situations when instantaneous responses are required, such as microtransactions, frequent encounters, and time-sensitive situations.
The desktop app for this trading platform is already out, and users can download it from Hydranet’s website. The Layer 3 exchange of the platform includes an order book, a state channel management interface, and a self-custodial wallet.
This post was last modified on Sep 25, 2023, 15:44 BST 15:44