Hashflow: Binance’s Latest Cross-Chain Dex
Hashflow, the latest project to come from the Binance launchpad, is a new decentralized exchange (DEX) protocol that offers users both on-chain and off-chain functionality to help create favorable returns.
Due to off-chain functionality, the protocol is able to offer a unique set of features to users unavailable on protocols that are designed to only work within one blockchain network; and with bear market sentiment so strong, Hashflow has the potential to appeal to traders around the world still trying to capitalize off of crypto gains.
Cross-chain DEX
The new DEX creates a unique process for orders because it changes the way that a DEX normally utilizes Automated Market Makers (AMM). Instead of pushing every order through the automated service, Hashflow instead uses professional market makers to process each order which allows many on-chain issues such as sandwich attacks and impermanent loss.
Also, because the professional market makers do their work off-chain, it means that they are able to provide cross-chain swapping capabilities to users so that they can transfer liquidity from one blockchain network to another, opening up the possibilities for future interoperability.
Obviously though, this means that there is less decentralization involved because there is more activity being taken off-chain which has the potential to push away on-chain purists. However, to combat this risk, the Hashflow DEX uses cryptographic signatures for everything that professional market makers do in order to keep records immutable and public for the Hashflow community.
While it is not a perfect solution in a market where more decentralization is preferred over less, it still creates some space for Hashflow to test out how well this new system works.
HFT governance
In order to maintain stability in a protocol that utilizes off-chain activity, governance is required by the community so that no bad actors can interfere with their activity on the protocol.
The Hashflow token, known as HFT, will be used to provide governance to the community which can use it to help submit proposals and manage the protocol efficiently which is a common trait for governance tokens that rely on the community to direct the protocol.
Early adopters of the protocol were also given HFT NFTs that exposed wallets to the first release of the HFT tokens as a reward for being the first to become involved with the project which is an interesting utility because it allows the NFT to peg its value to the strength of the protocol. As the protocol expands, these NFTs will continue providing better returns to the earliest adopters of the project.
Incentives for community
To keep the community engaged with the protocol, Hashflow has created an incentive system that adds weight to every transaction made by a user. Also, because the off-chain capabilities by Hashflow allow swapping coins between different blockchain networks, it means that Hashflow can create weights that are related to each chain so that swapping on Ethereum versus BNB or Polygon will create different quantities of native tokens being rewarded to the users.
Further, a treasury containing 1% of the initial HFT token supply, is also being created to help provide stronger stability for the tokens and keep the protocol attractive to new users that want to swap tokens from separate networks.
