Hydrant ($HDX) is a decentralized exchange and DeFi platform built on Arbitrum layer2 solution. It claims to be a decentralized autonomous organization (DAO) focused on enabling interoperability between fundamentally-incompatible blockchains like Bitcoin and Ethereum using Layer 3 abstractions.

Layer 3, known as Hydranet, acts as a bridge for different and isolated Layer 2 protocols such as Bitcoin's Lightning Network and Ethereum's Connext state channel network to communicate and exchange information.

About $HDX

HYDRA ($HDX) serves as the utility and governance token of the platform, primarily backed by GLP. The Hydra project primarily focuses on the development of the Hydranet DEX. To support this, tokens will be reserved and vested or held in a multi-sig wallet over a 2-year period. The current HDX staking APY is 7.5%.

Difference between sHDX and gHDX

Staking sHDX and gHDX will reward the same amount of HDX over the same period until the rewards switch to DEX fees. The difference lies in how the rewards are received: sHDX stakers receive an amount of sHDX for each rebase period (every 8 hours), while gHDX stakers' amount of gHDX remains constant, but the value of each gHDX in terms of HDX increases with each rebase period. This is calculated using the formula gHDX * index = HDX. The current index can be found on the dashboard: https://app.hydranet.ai/#/dashboard.