The problem HydraSwap solves

The first thing we wanted to solve was the pricing intelligence on AMMs as the current crop of AMMs are mostly inward-looking and solely rely on their inventory for pricing which is quite basic. Looking further ahead on the roadmap, our vision is to become the one-stop application for liquidity providers in a cross-chain world. On top of a powerful AMM, we aim to integrate with existing bridges like Wormhole to create cross-chain LP tokens and allow LPs to mine and farm in Solana with minimal hassle. This is when Solana caught our eye and we quickly realized that a lot of the computational bottlenecks that we faced on Ethereum were not there on Solana. This was not straightforward but we eventually overcame this by creating our own numerical optimizations for this and released our beta version in October 2022. Looking further ahead on the roadmap, our vision is to become the one-stop application for liquidity providers in a cross-chain world. On top of a powerful AMM, we aim to integrate with existing bridges like Wormhole to create cross-chain LP tokens and allow LPs to mine and farm in Solana with minimal hassle. Like anyone looking to foray into DeFi, our first choice was Ethereum but we quickly realized that our vision to create a sophisticated AMM was dead on arrival given the gas bottlenecks. Digging more into it, we clearly saw that Solana’s POH coupled with the Tower-BFT was the only game in town that aspired to achieve the throughput of centralized databases. This is exactly what we needed to implement a DEX that could match up to CEXes.

Challenges we ran into

This was a major first step and allowed us to learn the ins and outs of Solana while building something usable. We are currently in the process of combining the above with two additional game-changing AMM innovations that we will discuss further in the project details section. We aim to launch our official v1 with these powerful features in November 2022 and hope to change the DEX liquidity landscape in Solana and ultimately in Defi. While we work hard on developing a top-notch product, HydraSwap is committed to building a strong community and we have already begun our go-to-market work. Our next challenge was to optimally compute our ‘smart’ pricing formulae on-chain. By focussing on LPs, our vision is to attract more liquidity into decentralized exchanges and bring the trading experience of the average DeFi user to the same level as centralized exchanges.