The central theses:
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Hashflow is a decentralized exchange optimized for interoperability, minimal slippage, and MEV-protected transactions.
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HFT is the native currency of the Hashflow ecosystem. It supports key activities like staking, governance, and in-DAO health and rewards.
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Hashflow exchanges facilitate bridgeless, cross-chain asset exchanges.
Automated market makers (AMMs) have contributed immensely to the growth of decentralized finance (DeFi) over the past two years. Although developers have created several AMM models to solve the problems plaguing them, this is still a work in progress. The problems of high transaction fees, front running, sandwich attacks, lack of gas and regular failed transactions have yet to be solved.
DeFi aims to remove financial barriers and inefficiencies. Instead, trading on DeFi can be more expensive than on centralized exchanges (CEXs). Hashflow innovates within the DeFi landscape by introducing revolutionary features such as optimization for interoperability, minimal deviation, and MEV-protected transactions. In this article, you’ll learn about Hashflow, how Request for Quotation (RFQ) works, bridgeless cross-chain swaps, HFT tokenomics, and the hashverse.
What is Hashflow?
Hashflow is a DEX optimized for interoperability, minimal slippage, and Miner Extractable Value (MEV) protected transactions. You can use it to trade digital assets on multiple blockchains in seconds by simply linking your web3 wallet. Hashflow transactions are commission-free and price quotes are made at market prices, so you get the best deal on every trade.
Most DEXs use automated market makers (AMMs) to facilitate trading. While AMMs have been a major contributor to the growth of DEXs and DeFi in general, they have their drawbacks. AMMs face challenges such as capital efficiency, non-spot asset pricing, and risks such as sandwich attacks and fickle losses.
Hashflow solves the above problems by using a Request-for-Quote (RFQ) technique to allow experienced market makers to take control of liquidity pools. The model gives traders and Liquidity Providers (LPs) access to advanced capital efficiencies, security features and financial products previously not possible in DeFi.
Unlike the endless product price function of AMMs, Hashflow’s RFQ model allows market makers to discover liquidity and market prices through an off-chain price function. In other words, market makers can leverage more advanced pricing methods that take into account off-chain data, including past token prices, volatility, and other market-based information, allowing them to price assets fairly.
Off-chain pricing allows traders to benefit from:
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Better Pricing – Off-chain pricing ensures fair pricing, allowing merchants to get maximum value from transactions.
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Minimal Slippage – Quotes are made at available market prices.
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MEV Protection – Hashflow uses cryptographic signatures that prevent front running.
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Bridgeless Cross-Chain Swaps – Traders can easily and quickly exchange tokens across networks without using bridges.
How does Hashflow work?
The Hashflow protocol connects on-chain traders with the top cryptocurrency market makers. It does this with extremely low gas fees, a listing of the best market makers and efficient use of capital. Also, you don’t have to trust the manufacturers to trade against you as Hashflow supports a permission-free experience enriched with fair prices. A manufacturer makes you a safe offer that you can only accept if you want to.
Image source: Hashflow
Hashflow gas fees are cheap because the protocol’s role is limited to the bare minimum. does nothing. You confirm a signature and execute trades without turns and on-chain routing.
DEXs should consistently support small and large transactions at fair prices with composability to sustain DeFi’s continued growth. Hashflow strives to make this idea a reality through its RFQ pricing model. The model ensures that elite market makers trading on CEXs and over-the-counter (OTC) desks can seamlessly venture into the DeFi landscape and transact huge amounts with minimal risk. These manufacturers can provide the much-needed liquidity that is prevalent in CEXs.
Bridgeless Cross-Chain Swaps
Hashflow allows users to quickly exchange tokens between networks without using a crypto bridge. Also, Hashflow transactions are protected from slippage and MEV exploits, whether executed on-chain or on another blockchain. Regardless of where you trade, you will receive your tokens on your chosen receiver chain without any value deduction.
The protocol leverages DeFi-native RFQs to source quotes from market makers who control liquidity in the pools. The protocol requires manufacturers to cryptographically confirm rates that remain the same throughout transactions. The price stability feature guarantees fair asset prices and prevents front running and sandwich attacks. Also, it protects users from slippage in case of significant price fluctuations between the time it takes for the trade to be confirmed on the source network and the information being transmitted to the recipient chain.
Image source: Hashflow
These are the steps involved in a bridgeless cross-chain swap:
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A trader makes an offer to sell 1 BTC on the Bitcoin blockchain (source chain) and buy 50 BNB on the BNB smart chain (destination chain).
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A market maker sends a cryptographically signed price to the trader.
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The trader submits the trade to the bitcoin network with the signed rate as a payload.
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If the transaction is accepted on the source blockchain (Bitcoin), the gateway contract will prompt for an activity.
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The relayer transmits the payload to the receiving chain (BSC) and deposits BNB into the merchant’s account.
The process does not involve external bridges or require traders to lock their BTC on the source chain as collateral to receive a wrapped version on the receiving blockchain. They natively exchange each coin through signature-based prices and RFQs.
HFT tokenomics
HFT has a market cap of $85 million, an outstanding supply of 175 million and a maximum supply of 1 billion tokens. It powers the Hashflow ecosystem, including Hashverse – Hashflow’s gamified decentralized autonomous organization (DAO) and governance platform. HFT is an ERC-20 token running on the Ethereum blockchain. The token serves two specific purposes:
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Hashflow’s governance uses a Vote Escrow (ve) token mechanism – voting rights are based on the amount of HFT tokens a user stakes and the length of the staking period. Essentially, holding HFT is not enough. You must use them to gain voting rights and shape Hashflow’s future. The decisions you vote on include transaction costs, marketing campaigns, and code upgrades.
In-DAO health and rewards
The Hashverse is a Storyverse-based, gamified DAO and governance platform. Your Hashverse health score is based on your staked tokens. You should change your bet size and duration regularly to maintain a good Hashverse score and increase your engagement and usage. The protocol rewards the most active users and their Hashverse presence determines whether they can redeem the rewards.
HFT assignment
At Genesis, the total HFT supply was 1 billion. The allocation of HFT tokens is as follows:
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19.32% are assigned to the core team
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25.00% will be allocated to early investors
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2.50% will be allocated to future hires
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53.18% are allocated to ecosystem development
In ecosystem development, HFT is divided into the following subcategories:
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18.54% will be allocated to ecosystem partners
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13.08% is allocated to Community Rewards
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9.54% will be allocated to Future Community Rewards
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7.50% will be allocated to Designated Market Maker Loans
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2.52% is allocated to Vendors and Early Service Providers
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1.00% is allocated to the community fund
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1.00% will be allocated to Hashverse Rewards
You can buy HFT tokens on exchanges like BKEX, Binance, Coinbase, Huobi, and Kraken. Check CoinGecko’s Markets section to find more exchanges to trade HFT.
The Hashverse
Image source: Hashflow
The Hashverse is a revolutionary Storyverse-based, gamified DAO and governance platform. Users can stake HFT tokens, complete activities, and generate rewards to shape the future of the Hashflow ecosystem. At the heart of the Hashverse is its Storyverse, crafted by Superconductor – a popular Hollywood-style creative media agency. Set in a dystopian space, Hashverse integrates ancient culture with modern technology as part of a centuries-long struggle that is about to end.
As mentioned earlier, your Hashverse Health Score is based on the number of HFT you have deployed. Also, you should change the number and time period of your staked tokens regularly to keep a good Hashverse score. Hashflow looks at this model as a method to increase engagement and actual usage.
In general, the Hashverse is like a pool of HFT holders who will shape the future of the Hashflow ecosystem, but with a twist. The goal is to make governance in the DeFi space all-encompassing and allow any crypto user to participate and earn rewards regardless of their crypto expertise. Leveraging these features, Hashverse offers participants an immersive experience to solve and complete quests, collect and trade in-game items, develop their characters, and create economic incentives as they shape the future of Hashflow.
Conclusion
At its core, Hashflow is a layer-zero DEX that supports cross-chain trading. You don’t need to sign up or pass the verification process – you connect your web3 wallet and start using it. All Hashflow transactions are commission-free and price quotes are generated at available market prices, helping you maximize your benefits from your trades. Hashflow uses an RFQ mechanism to allow experienced market makers to control liquidity pools. Now traders and LPs can access better efficiency, security and financial products in DeFi.
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Josiah Makori
Josiah is a tech evangelist passionate about helping the world understand Blockchain, Crypto, NFT, DeFi, Tokenization, Fintech and Web3 concepts. His hobbies are listening to music and playing soccer. Follow the author on Twitter @TechWriting001
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