Hydro Protocol - The Ultimate Staking Platform Based on Injective

Source: Go2Mars Research

Importance of Hydro

The Local Staking Derivatives (LSD) protocol is a game-changing protocol. While other projects use IBC, the Hydro Protocol is committed to the growth of Injective and aligns with its success. Hydro Protocol has always believed that Injective is the cornerstone of LSDFi potential, leading adoption and utility on DeFi platforms. Hydro Protocol is not just focused on ordinary LSDs but aims to enter the LSDFi space.

Key Features

LSD

Liquid Staking Derivatives (LSD) will be the main product of Hydro Protocol, providing liquid staking. On LSD, users can deposit INJ tokens in exchange for hINJ tokens and start earning staking rewards. hINJ is the liquid staking token of Hydro Protocol, enabling instant staking yields and opening liquidity for other DeFi protocols. By minting their own hINJ, users will unlock endless opportunities within the Injective ecosystem. Hydro Protocol collaborates with various projects to ensure hINJ becomes the collateral standard across the network.

Mining

The mining feature of Hydro Protocol will be one of the first use cases for users to utilize hINJ tokens on the Injective Network. By depositing hINJ, users will be able to maximize their token rewards.

Auto-compounding

Hydro Protocol allows users to utilize an auto-compounding feature to maximize staking rewards and amplify their rewards on INJ assets. In traditional staking models, users need to manually claim INJ rewards and then re-stake to achieve compounding. This periodic manual claiming and re-staking is inconvenient, incurs additional network fees, and consumes time and effort.

Real Yield Aggregator

Hydro Protocol will launch a real yield aggregator on Hydro. LSDs are currently popular in the market, but their utility for wealth accumulation is limited because yield opportunities are inflationary and value-decreasing. LSDs can only grow to a certain extent without yield opportunities, and it is the yield opportunities where LSDFi (Liquid Staking Derivatives Finance) truly takes off. This is where Hydro's real yield aggregator comes into play. The real yield aggregator created by the Hydro team can aggregate real yields from various sources into a comprehensive index and distribute them to users. Hydro's real yield aggregator is low-risk, diversified, and easy to use.

Tokenomics

HDRO Token

The HDRO token is the governance and utility token on Hydro Protocol. The token is carefully designed to be deflationary and accumulate value. The maximum supply of HDRO is 1 billion tokens, aimed at benefiting HDRO holders and stakers. A value accumulation mechanism has been implemented to leverage real yields, proportionally used for repurchasing HDRO to capture value, and distributed to HDRO holders to benefit stakers.

Importance of HDRO

• Value grows with the success of Hydro Protocol.

• Holders are entitled to 30% of the protocol's redistribution fees.

• Plans to incorporate it into real yield index derivatives as part of the real yield aggregator.

• Hydro's governance token.

• $HDRO can enhance yield from farming activities.

Token Distribution

|----------|------------| | Private Sale | 25% | | Community Distribution | 15% | | Founding Team | 15%, 4-year lock-up period | | Foundation | 20% | | Early Investors and Advisors | 2.5% | | Bug Bounty and Legal | 2.5% | | Ecosystem Development | 20% |

Roadmap

Hydro Protocol is expected to launch in September 2023.

Q3/4 2023------Launch

• TGE (September 2023)

• CEX/DEX Listings

• Expand utility on Injective

2024------Develop LSDFi on Injective

• Real Yield Aggregator

• Increase adoption of third-party protocols

Summary

Liquid staking derivatives are an important theme in DeFi, and Hydro is at its center, aiming to provide users with liquidity, utility, and wealth. In Hydro's vision, Hydro will become the first and only native LSD protocol on the Injective Network, making liquid staking tokens (LST) the Injective standard for building the LSDFi ecosystem. Hydro has already planned the next steps for Injective's LSDFi growth strategy, with the upcoming launch of the real yield aggregator feature.