DeFi or Decentralized Finance has the potential to shift the structure of the whole financial system at a macroeconomic level and likely to have a significant impact on how banks operate in the future. The future of finance is Decentralized, so as Project Hydro and we are building game-changing DeFi applications which are going to emerge into the mass market.

Today, we are very happy to announce a new product which covers this DeFi Space. Launching HydroSwap which is one of our biggest and major products till date.

HydroSwap is not just a DEX (decentralized exchange), it is a full-featured DeFi platform by Project Hydro running on BSC (Binance Smart Chain). It allows users to seamlessly swap or exchange tokens in hosted pools and offers transaction mining rewards and yield farming incentives to liquidity providers as well.

HydroSwap has a simple yet beautiful user interface, and anyone can use it because of faster & cheaper transactions. It lets you trade, stake and earn tokens. Also allows for the creation of liquidity pools to exchange between different tokens as well.

HydroSwap is a decentralized protocol similar to Pancakeswap or Uniswap, but we are offering more yield incentives for users who stake in selected pools, as well as in our native HYDRO tokens. During the swap process, users will be shown an estimated result and amount of slippage for the conversion before the actual swap is executed.

In the 1st version of HydroSwap, users will have the ability to swap their favourite tokens and also provide liquidity within their pairs to get rewarded with LP (Liquidity Pool) Tokens. These LP Tokens will be central to the evolution of the platform as they will not only be tradable on the platform but also stakeable within the HydroSwap in the next version.

How trade execution actually works on HydroSwap?

Token holders deposit their assets in return of interest and a percentage of transaction fees. These assets work as a liquidity for the order book. So unlike a conventional order book, HydroSwap users effectively trade against a pool of these assets. In simple terms, it’s like User A provides liquidity on HydroSwap, so that User B can seamlessly swap tokens using HydroSwap.

In short, HydroSwap uses an AMM (Automated Market Maker) model, which means there isn’t an order book where your orders are matched with. Instead, you trade against a liquidity pool.

There are 3 tabs on HydroSwap homepage:

  1. Swap: To exchange or trade tokens instantly.
  2. Liquidity: To add or remove liquidity on HydroSwap.
  3. Bridge: To swap new Hydro tokens between ERC20 and BEP20.

In this article, we’ve explained about Swap and Liquidity. For the 3rd tab- Bridge, we already have discussed in our recent article, you can read more about it from here.

Get started on HydroSwap

To get started on HydroSwap, it is essential to understand that a wallet is required to interact with Binance Smart Chain (BSC) and that wallet must have to be a BSC network supported. If you are using a wallet that supports multiple blockchain networks, please make sure to switch to the BSC network first, and also be required to have some BNB to pay gas fees for the transaction. Now you are good to go with HydroSwap!

One can use HydroSwap using any wallets that support dApp Browser and BSC network like Trust Wallet, MetaMask, Binance Chain Wallet, SafePal Wallet, MathWallet, etc. 

In this tutorial, we are going to use the MetaMask desktop version.

Connect your wallet to HydroSwap

  1. Open HydroSwap webpage.
  2. Open MetaMask and change the network to BSC Mainnet.
  3. To connect your MetaMask wallet to HydroSwap, click on the “Connect” button and then select MetaMask.
  4. Once connected, your wallet address will be displayed on that “Connect” button.
  5. Now, you are all set and can start exploring all the HydroSwap features.

How to Trade

  1. Connect your wallet with HydroSwap and go to the Swap page.
  2. Choose the token you want to trade from the dropdown menu in the “From” section.
  3. Choose the token you want to trade to in the “To” section.
  4. Enter the amount in either “From” or “To” currency and the equivalent amount of currency automatically estimated in opposite currency.
  5. Click on the “Swap” button.
  6. A window with more details will appear, check the details are correct and click on the “Confirm Swap” button.
  7. Voila, transaction submitted, you can click on BscScan to check your transaction details.

How to Add Liquidity

You can provide liquidity to any token pair you like. Please make sure you have both tokens in equivalent USD amount. You will get LP tokens in exchange for providing liquidity. And you will receive trading fees as per your share of LP tokens in that particular pair. 

Here for example, we will add liquidity in BNB and HYDRO.

  1. Connect your wallet with HydroSwap and go to the Liquidity page.
  2. Click on the “Add Liquidity” button.
  3. Select BNB from the top input or leave BNB as it is if it’s already selected.
  4. From the bottom input, click on the “Select a currency” button, and pick HYDRO.
  5. Enter the amount under any “Input”, and the other will be calculated automatically.
  6. Click on the “Approve HYDRO” button.
  7. Approve the transaction from the MetaMask popup.
  8. MetaMask notification will be displayed saying the transaction is confirmed.
  9. After approval is confirmed, “Swap” button will light up, so click on it.
  10. A window with more details will appear, check the details are correct and click on the “Confirm Supply” button.
  11. Confirm the transaction from the MetaMask popup.
  12. After the transaction is confirmed, you will see your LP Token balance at the bottom of the page.

How to Remove Liquidity

  1. Connect your wallet with HydroSwap and go to the Liquidity page.
  2. Under “Your Liquidity” section, you can see all the pairs for which you’ve provided liquidity, click on the pair for which you want to remove liquidity.
  3. Click on the “Remove” button, a new window will appear.
  4. Use a slider or the buttons to choose the percentage you want to remove.
  5. Click on the “Approve” button.
  6. Approve the transaction from the MetaMask popup.
  7. MetaMask notification will be displayed saying the transaction is confirmed.
  8. After approval is confirmed, “Remove” button will light up, so click on it.
  9. A window with more details will appear saying what you will receive, check the details and click on the “Confirm” button.
  10. Confirm the transaction from the MetaMask popup.
  11. After the transaction is confirmed, at the bottom of the page, you can see your remaining LP Token balance if you’ve removed it partially or nothing if you’ve removed it completely.

Introducing “Droplet

Droplet is the framework we have been developing for creating NFTs that will be implemented into the future version of HydroSwap. This will open many new doors and possibilities by bringing NFTs to the Hydro Ecosystem.

Droplet is a kind of token with some well-known and few additional unique use-cases. Droplet’s main purpose is to make HydroSwap more advanced and more rewarding for users. It will be distributed to stakers daily depending on how much LP tokens they stake. Of course these Droplet NFTs will also come with the ability to trade in the swap together with many others and withdraw them to AegirWallet for HODLing as well.

Below are the Droplet use-cases we are thinking of to add later on:

[Note: Please note that there are many features ongoing and many in the roadmap will be added in a phased manner.]

References:


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