SimpleSwap

SimpleSwap is Hydranet’s one-click trading experience, designed for users who want to quickly exchange one token for another with minimal effort. With a Uniswap-feel, SimpleSwap handles the entire off-chain process from channel opening to closing. 

To trade using SimpleSwap all you need is the token you want to sell and native tokens to pay for gas fees - for instance, ETH on Ethereum and BTC on Bitcoin. 

SimpleSwap is a prominent tool to test Hydranet’s Multi-Pair routing and 0 Confirmation Channels introduced in the Beta build. An explanation for these features will follow further down in this guide.

Make a SimpleSwap

SimpleSwap is made to be simple.

1. Access the SimpleSwap UI
   Navigate to the Swap page on the left-hand menu. 
2. Execute Your Swap
   Select your desired trading pair and amounts, and initiate the swap by clicking Swap. The following trading pairs will be available, you can choose freely among them
3. Optional: Enable automatic withdrawal
   Enter the Advanced options and tick “Withdraw funds after swap” to enable an automatic withdrawal of your funds from your state channel. If left un-ticked, your received funds will remain off-chain within your state channel. 
4. Verify Balances
   After each swap (or session of swaps), your wallet and state channels balances should update accordingly. For instance, trading USDC to BTC should reflect a decrease in USDC outbound liquidity but an increase in USDC inbound liquidity, and v.v. for BTC. 

Multi-Pair routing

Multi-pair routing allows you to trade assets even when there’s no direct liquidity between your chosen pair. For example, if you want to swap BTC → HDN but no direct market exists,

Hydranet automatically finds the most efficient path. Suppose there’s liquidity in BTC ↔ aETH and aETH ↔ HDN, your trade will be seamlessly routed through these pairs, completing the swap BTC → aETH → HDN.

Multi-pair routing is nothing users can control. It is controlled automatically by Hydranet. To trigger the feature, test different trading pairs until you reach a similar state as the one below, with the trade from BTC to HDN routed via aETH. You can always ask in the Beta testnet channel in Discord for a good trading pair to use to trigger the feature.

0 Confirmation Channels

This feature allows users to immediately use rental funds in their state channel, even before the deposit is fully confirmed on-chain. This means users can receive payments instantly upon pressing the Swap. This is especially powerful when trading into Bitcoin, where a single block can take 10 min to confirm without 0 confirmation channels.

0 confirmation channels is nothing users can control. Simply trade into your favorite token and the feature will activate automatically.

Ideas for testing

Hydranet’s SimpleSwap is simple for the user but advanced behind the scenes. Therefore, don’t just test it once but several times using different scenarios. For instance:

• Trade between all possible pairs you can find
• Trade in both directions
• Trade with and without automatic withdrawals upon swap completion
• Open and fund state channels before swapping

Share your thoughts and findings with the Hydranet team in the Beta Testnet channel on Discord. If necessary, submit a support ticket for further assistance.

Good luck and happy testing!