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Hydra blockchain became one of the few networks that offer DEX services as it unveiled its native platform HYDRA DEX last week. Currently, the only other networks that boast a decentralized exchange are Ethereum, Solana, Polygon, BSC, Tron, and EOS.
Hydra Chain launches Native DEX Platform
In a recent blog post, Hydra announced that it’s kickstarting the project’s liquidity phase with a decentralized exchange. The DEX is a critical part of Hydra’s roadmap and is expected to make the launch of future projects easier on the blockchain.
While Hydra’s new offering is still in the first stage, the team behind the project has ambitious plans for it. In upcoming updates, developers plan to enhance HYDRA DEX’s user interface, create a single-click Ethereum bridge and introduce a liquidity mining program.
Aside from that, Hydra is also taking on the challenge of addressing the dreaded impermanent loss. Liquidity providers in DeFi are often vulnerable to losses because the price of tokens they deposit is subject to change. An impermanent loss happens when these providers end up withdrawing much less money than the amount they deposited. To combat this, Hydra is working on a single-sided liquidity solution, which has only been achieved by one other project in a partial state.
Launch Marks A New Era for Hydra Chain
Hydra claims that its DEX would usher in a new era for the ecosystem and provide better liquidity to incoming and existing projects. The liquidity factor is also going to draw in traders looking for “dense liquidity pools” and freedom from dependence on centralized exchanges.
The exchange’s first liquidity pool has already been deployed with $125,000 per side. Additional chunks of liquidity will be added over the next few months. Liquidity providers who place HYDRA and LOC into the pool will automatically receive a proportionate size of exchange fees.