Hydrant ($HDX) is a decentralized exchange and DeFi platform built on Arbitrum layer2 solution. It claims it is a decentralized autonomous organization (DAO) focused on solutions that allow fundamentally-incompatible blockchains like Bitcoin and Ethereum to interoperate with each other using Layer 3 abstractions.
Layer 3, to Hydranet, is the bridge where differing and otherwise-isolated Layer 2 protocols like Bitcoin’s Lightning Network and Ethereum’s Connext state channel network communicate and exchange information.
HYDRA ($HDX) is the platform's utility and governance token, backed primarily by GLP. The Hydra project is driven primarily by focusing on the Hydranet DEX development. To support this, tokens will be reserved and either vested or held in a multi-sig 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 get switched to DEX fees. The difference is in how those rewards come: For sHDX, stakers receive an amount of sHDX for each rebase period (every 8 hours). For gHDX, the stakers’ amount of gHDX remains constant, but the amount of HDX that each gHDX is worth increases with each rebase period. This is determined by the calculation gHDX * index = HDX. The current index can be found on the dashboard: https://app.hydranet.ai/#/dashboard.
