In recent years, businesses and individuals increasingly adopted cryptocurrencies as a means of payment. Apart from using cryptocurrencies as means of payment, people invest in them, resulting in a need for more crypto exchanges than ever before. In response to this, many entrepreneurs come onboard to establish new decentralized crypto exchanges. However, this is not a simple task. They face several challenges.
Inhibiting cost of establishing new crypto exchanges
The greatest challenge entrepreneurs face when establishing crypto exchanges is the high initial capital requirement. It is expensive to create the required infrastructure. Despite the financial cost, the process is time-consuming and demands a lot of effort and expertise. Against this background, Hydro offers a cheaper and convenient option for entrepreneurs to create decentralized crypto exchanges.
Hydro is an open source protocol for creating decentralized exchanges. It has all the functionalities that enable developers to build high performing decentralized exchanges within little time, using very limited resources.
The decentralized exchanges use the ready-made smart contracts generated on the Hydro protocol. Therefore, the exchanges do not design, create or secure their own smart contracts. Traders use Hydro smart contracts through the interface of Hydro Relayers.
The focus of Hydro
The focus of Hydro is to enable aspiring and experienced entrepreneurs to establish their decentralised exchanges based on the Hydro protocol, using few resources, little time and less effort. The developers select pre-made smart contracts and deploy them to their exchanges. The Hydro Protocol runs on the ethereum blockchain.
In enabling all these, Hydro wants decentralised exchanges to operate in as frictionless an environment as possible. As a result, there is no requirement for exchanges to hold tokens or use Hydro token (HOT) as an incentive. True to the meaning of its name, Hydro, it ensures that liquidity is available to the exchanges. As a matter of fact, the name Hydro implies that the most important aspect in its dealing is to maintain high liquidity for the exchanges at all times.
How does Hydro achieve its focus?
Developers use the Hydro SDK to create and launch decentralized exchanges due to its customizable interface. Also, Hydro has a standardized open source API which integrates easily with DeFi projects. Above this, Hydro has efficient and secure contracts for decentralized exchanges. A third part security firm audits these smart contracts. Therefore, there is every reason for decentralized exchange developers to use the Hydro protocol.
Many parties benefit from the Hydro Protocol. For instance, several leading exchanges are creating new decentralized exchanges as a means of expansion. Therefore, these businesses can use the Hydro Protocol to create new exchanges.
Some existing exchanges are facing liquidity challenges. As a result, these exchanges should use Hydro’s additional features to improve their liquidity. For example, they can join Hydro’s incentive program, where they use HOT as a reward token for certain activities and milestones. Developers can use Hydro’s smart contracts, since they are compatible with multichain systems. This helps developers to capitalize on opportunities that exist on different blockchain networks.
Hydro’s Competitive advantages
The Hydro protocol has several capabilities that make a first choice destination for many developers. First, its SDK enables a developer to create an exchange within a few minutes, reducing the cost and time required. As discussed above, a third party security company audits the smart contracts, creating confidence in the exchange. Audited contracts also increases security of the exchanges.
Lastly, Hydro Relayers collects reasonable fees, based on the percentage of the volume of tokens traded on their exchanges. Thus, there is reliability and transparency regarding the fee structure.
In summary, the Hydro Protocol allows developers to build decentralized cryptocurrency exchanges at low cost and with little time and effort. The other benefits for users are rapid deployment, secure and audited smart contracts and a flexible fee structure.