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. 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. 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. Moreover, it was clear to us that Solana was the frontrunner in becoming the primary blockchain for trading oriented use cases in DeFi.
With the above clarity we set out to create our AMM of the future on Solana. 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. In order to create an ‘intelligent’ AMM, we needed additional market information. Luckily for us, we found the ideal partner in Pyth. Integrating with Pyth’s high-performance oracle was a seamless experience. Our next challenge was to optimally compute our ‘smart’ pricing formulae on-chain. This was not straightforward but we eventually overcame this by creating our own numerical optimizations for this and released our beta version in September 2021.
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 November2021 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 comm
Designing the frontend and backend with working on solidity and truffle was the most challenging part.
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