FAQ
FAQ
If you can't find your answer among the FAQ, please visit Hydranet's Discord to ask for support, or e-mail the Hydranet team at support@hydranet.ai.
General
What is Hydranet?
Hydranet is a Web3 crypto wallet with an integrated Decentralized Exchange (DEX) and Blockchain Bridge that facilitates lightning-fast and low-cost crypto trading. It uses advanced off-chain protocols to create a crypto trading experience that, up until now, have only been known to Centralized Exchanges (CEX) - trading without network fees and with instant trade confirmations. Hydranet’s Web3 crypto wallet is also your one-stop-solution for scalable crypto payments, allowing payments over networks such as Bitcoin's Lightning Network, for a useful everyday crypto lifestyle.
What are state channels?
State channels is a scalability solution designed to address the limitations of blockchain networks in terms of transaction throughput and latency. Unlike on-chain transactions, which necessitate miner confirmations, off-chain transactions using state channels allow users to conduct multiple transactions without involving the underlying blockchain for each transaction. Instead, the blockchain is only used to establish the initial state and settle the final state of these off-chain transactions, which significantly reduces transaction costs and increases transaction speed. The most prominent example of a state channel solution is Bitcoin's Lightning Network. Not that famous yet already superior is Hydranet's Lithium Network, a state channel solution for smart contract-based blockchains (Ethereum, Arbitrum, Solana, etc) and beyond.
What makes Hydranet unique?
Hydranet offers a solution to the most important problem in the blockchain industry - the tradeoff between self-custody, scalability, and transaction costs. As the blockchain industry grows in popularity and demand, heavy network traffic leads to serious congestion problems that cause transaction fees and confirmation times to increase astronomically. Crypto traders can turn to centralized solutions such as Centralized Exchanges to escape the shortcomings brought by network congestion but at the expense of giving up ownership of their private keys. This is where Hydranet comes in with its unique approach of using state channel solutions that don't require network confirmations but always ensure that the users are in full control of their private keys - for a scalable crypto future.
What's your greatest unique selling feature in one line?
We offer a self-custodial, cheap, and scalable trading platform, equally suitable for retailers and professional traders.
Who's behind Hydranet?
Hydranet is a community driven project, run by a diverse group of volunteers who strongly believe in what Hydranet is building. Please visit the Hydranet DAO page to find more information about the current team members and their roles.
How do I buy HDN?
HDN is currently sold at Uniswap, Whitebit, XT, MEXC, and Toobit.
How can I help?
By joining the community, you can be involved in the decision-making process and help us spread the word about Hydranet to the world. Much of our content production, moderation, and social media management have come from volunteers. We have international community representatives for an impressive number of countries and languages. These efforts significantly enhance communication between the team and community itself. We happily invite you to join the Hydranet Discord channel and to try our product!
How does Hydranet address regulatory concerns?
The Hydranet team runs continuous dialogs with lawyers to minimize the risk of regulatory consequences.
What is the purpose of the DAO?
Hydranet is a community-based, DAO-controlled project that draws its core strengths from its dedicated, organic following. The community serves as the DAOs support network, and vice-versa. Important decisions are made by proposal voting. Business plans and goals are relayed by the team to the community on both an as-needed basis and in the form of weekly and monthly project status updates. The community, in turn, provides feedback, votes on DAO proposals, and proposes ideas for future votes. You too can be part of the Hydranet DAO and community.
What is a DAO and how does it work?
"DAO" is short for "Decentralized Autonomous Organization". Hydranet is managed through a cooperation between the community and the Hydranet team. Proposals are arranged on the Snapshot platform so that HDN holders can vote on important topics, and the team then implements those decisions accordingly.
How and where can I get support if I have technical problems?
The best place to ask for support is on the Hydranet Discord. You can also e-mail the Hydranet team at support@hydranet.ai.
Wallet
Can I store multiple assets in Hydranet’s wallet?
Yes, you can store multiple assets in Hydranet's wallet. Our wallet supports a wide range of cryptocurrencies and blockchains, allowing you to manage all your digital assets in one secure place. This includes major cryptocurrencies like BTC, ETH, USDT, HDN, SOL, and many others. Hydranet's wallet is designed to provide a seamless and secure experience, making it easy for you to store, send, and receive various types of digital assets without needing multiple wallets.
Can I retrieve my funds in case I cannot access the Hydranet’s wallet?
Yes, you can retrieve your funds even if you cannot access the Hydranet’s wallet, provided you have your backup information. When you set up your wallet, you are given a recovery seed phrase. This phrase is crucial for regaining access to your funds if you lose access to your wallet. Keep your seed phrase in a safe and secure place.If you need to retrieve your funds, you can use the seed phrase to restore your wallet on any compatible wallet application. For example, if you hold ETH or other ERC-20 tokens, you can restore your wallet on an EVM-compatible wallet like MetaMask. Similarly, if you hold Bitcoin (BTC), you can restore your wallet on a Bitcoin wallet like Electrum. Without the seed phrase, it is not possible to recover your funds, so it’s essential to store it securely. Keep in mind that external wallets may not support off-chain networks, meaning funds held in state channels might not be accessible through these external wallets.
Does Hydranet have support for hardware wallets?
No, Hydranet does not currently support hardware wallets. This is due to Hydranet’s off-chain capability. Hardware wallets sign transactions outside the main application, and off-chain transactions sent via state channels require a large number of signatures to be transmitted. Currently, no off-chain compatible hardware wallet can handle this volume of signatures. However, the Hydranet team is actively researching this area, and support for off-chain hardware wallets may be introduced in the future once Hydranet’s wallet and network are stable on the mainchain.
Can I access my Hydranet wallet on multiple devices?
Yes, but there are aspects to keep in mind.
- Single Active Device: You cannot use your wallet actively on multiple devices at the same time. To access your wallet on one device, you need to close the Hydranet wallet application on all other devices. Otherwise, this will conflict with your open state channels.
- Security Risks: Sharing your wallet over multiple devices requires you to input your seed phrase into each new device. This poses a security risk, as your seed phrase could be exposed to viruses, malware, or trojans. To mitigate this risk, consider using multiple different wallets (seed phrases) for different devices. Although this requires more administrative work in managing and backing up multiple seed phrases, it enhances the security of your assets. This caution applies not only to Hydranet but to all crypto wallets you use.
I can’t withdraw funds from my state channel, it seems like my state channel counterparty is offline. What should I do?
Before taking any drastic measures, you are advised to ask the Hydranet team for guidance. It may be that your wallet needs synchronization or that your state channel counterparty is temporarily offline, both of which can be resolved by waiting for some time.If you find yourself in a situation where your state channel counterparty is permanently offline, you can conduct a unilateral withdrawal from your state channel. This will initiate a process that usually lasts 24-48 hours. During this period, known as the Dispute period, the state channel counterparty has the opportunity to dispute the submitted channel state with a newer state. This period continues until both state channel parties agree on a final channel state to be submitted to the blockchain, after which you can withdraw your funds from the channel.
I want to receive a payment off-chain but I get errors due to insufficient inbound liquidity. What should I do?
Receiving payments off-chain using state channels requires sufficient inbound liquidity to process incoming payments. Unlike outbound capacity, you can't increase inbound liquidity by depositing funds into your state channel from your personal wallet. Instead, you need to rent liquidity from the Titan your state channel is open with. When you rent liquidity, the Titan deposits funds into your state channel on your behalf, increasing your inbound liquidity.
Is there a fee for renting inbound liquidity?
Yes, Hydranet charges a fee for renting liquidity from Titans. The rental fee is 0.004% per hour of the rented volume, plus on-chain transaction costs.
Exchange and Blockchain Bridge
Which trade pairs will be available on Hydranet?
Upon mainnet launch, Hydranet will offer major trade pairs such as ETH/USDT, BTC/USDT, and BTC/ETH. More trade pairs will be added based on requests from the Hydranet DAO and potential collaborations or partnerships.
Is trading on Hydranet free of risk?
Trading crypto is never free of risk. When interacting with any contract, there are inherent risks. Additionally, using centralized exchanges means you don’t own your keys. Trading with state channels can also be risky since transactions are not recorded on the blockchain, requiring you to trust the state channel counterparty to some extent.However, Hydranet employs several mechanisms to mitigate such risks. Titans, the entities within the Hydranet Network that users open state channels with, face penalties for misconduct. Furthermore, while Hydranet users are offline, Guardians monitor your state channels and report any misconduct to ensure all participants adhere to the network's rules.
Do I need to keep my Hydranet application online to be able to trade?
Yes, to trade on Hydranet, your application must remain open and online. If your application goes offline, it will be unable to sign transactions for sending payments off-chain using state channels. Consequently, you cannot create limit orders on the order book and then close your application, as closing it will remove all your orders. The Hydranet team is researching ways to enable offline trading.
Do I need inbound liquidity when trading on Hydranet?
Yes, to trade on Hydranet, you need inbound liquidity. Without it, you will not be able to receive the tokens or coins you are buying.
Do I need to create channels and make rentals manually in order to trade on Hydranet?
If you want to trade using Hydranet’s order book, you need to manually open state channels and rent inbound liquidity. However, if you use the SimpleSwap UI, Hydranet will handle this process for you automatically.
Why would I use Hydranet over any other DEX or bridge protocol?
Hydranet offers several advantages: it’s faster, more scalable, more private, and has lower blockchain fees than other DEXs. Additionally, Hydranet’s Lithium protocol is unmatched in terms of network fees, making it one of the most cost-effective bridge alternatives on the market.
Who is the target audience for the Hydranet?
Hydranet is suited for a broad range of users:
- Retail Traders: Both experienced and novice retail traders can benefit from Hydranet’s order book and SimpleSwap, which provide access to fast, affordable, and self-custodial cross-blockchain trading.
- Professional and Institutional Traders: Hydranet's use of state channels allows for trades to be executed within seconds, enabling professional and institutional traders to employ advanced strategies such as algorithmic trading, high-frequency trading, statistical arbitrage, and market making. These trades are free of network fees and ensure that funds remain in the trader's custody at all times.
Token and Tokenomics
What is the role of the HDN Token?
HDN is a utility and governance token for the Hydranet DAO. Owning HDN tokens provides rewarding opportunities and responsibilities. It enables holders to operate Hydranet Network services, act as Lithium Liquidity Providers, benefit from reduced trading fees on Hydranet’s exchange, and to actively participate in the Hydranet DAO governance.
What is the max supply of HDN?
The maximum supply of HDN is 300 Million.
What is the purpose of strategic liquidity?
The main objective of Hydranet’s strategic liquidity is to improve the liquidity in HDN trade pairs on exchanges.
Can I stake my HDN?
No, staking your HDN is not possible. However, holding HDN makes you eligible to operate various roles within the Hydranet Network, such as Titans, Guardians, and Lithium Liquidity Providers. These roles are rewarded for their participation.