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Financial reports

Hydranet DAO's quarterly financial reports

2025

Accomplishments

  1. Web DEX Frontend:
    • Completed the first version and subsequent redesign of the Liquidity Provider Tab for improved user experience.
    • Significant debugging, testing, and UI enhancements have been implemented following team internal and Alpha group testing, including progress on the Orderbook UI.
  2. Web DEX Backend:
    • Significant debugging during team internal and Alpha group testing, leading to numerous orderbook updates. Improvements include better detection of completed swaps, merging of trade orders with the same order ID for faster execution, automatic re-instantiation of failed orders, and more.
    • Successful integration of Lithium V3 following its finalization.
    • First successful channel backup and restore completed; channel backup service deployed on team internal build.
    • Trading history API improvements have been merged and exposed for frontend use.
    • Successful integration of Ethereum Sepolia and Arbitrum Sepolia, while removing Ethereum Holesky.
    • Improvements to the Rental Manager covering automatic extensions of rented liquidity.
  3. Lithium Protocol:
    • Lithium V3 has been fully completed and deployed, offering lower gas fees, parallel swaps, and independent asset channel updates.
    • Enhanced messaging and recovery state features have been incorporated into the protocol.
  4. MultiSig / DAO:
    • New DAO proposals have been published, and additional MultiSig members have been onboarded following community votes.
  5. Marketing & PR:
    • Hydranet successfully showcased its project at International DeFi Day 2025 with a live presentation alongside leading teams (Chainlink, Arbitrum, GMX, etc.).
    • A series of monthly recaps, updated Litepaper, updated Pitch Deck, and user guides.
    • Various Twitter Spaces, covering Hydranet, crypto, markets, industry trends, and beyond.

Financial allocation

  • Web DEX Development, R&D: 1,176,937 HDN & 23,858 USDT
  • Multi-sig / DAO Management: 226,596 HDN
  • Operations: 76,415 HDN & 357 USDT
  • Marketing: 87,272 HDN & 1,395 USDT

2024

Accomplishments

  1. Marketing:
    • Hydranet Litepaper released.
    • Major 2024 marketing plan drafted and reviewed.
    • Article for bridge comparison completed
    • Bridge Comparison Calculator completed
    • Various promo videos, influencer interactions, and social media campaigns
    • Core DEX trading competition prepared.
    • Collaboration with Make-It for XT completed.
    • Collaboration with Make-It explored for further exchanges and hydranet dex.
    • Various activities planned and being prepared.
  2. Core DEX:
    • LSSD work completed.
    • New pairs and swaps working without any issue.
    • Orderbook fixes rolled out.
    • LSSD/Vortex running smoothly, 3rd parties testing
  3. Web Wallet:
    • Bitcoin off-chain send/receive completed.
    • Continued external lightning signer work.
    • Onboarding of new dev completed successfully.
    • Pricing API completed.
    • NOVA Web Wallet testnet release
    • Most UI bugs resolved.
    • Channel rental manager making good progress.
    • Cloud based backup storage nearing completion for multi-device use
  4. Tokenomics:
    • Tokenominc v1.5 update
    • Role descriptions updated.
    • Collaterals and fee distribution completed and voted in.
    • Tokenomics simulator completed
  5. DAO:
    • Hydranet Improvement Proposals #26 - #30.
    • DAO forum completed
    • Hydranet Foundation completed and serving as a legal wrapper for the Dao.
    • Centralized exchange listings on XT.com and Toobit
  6. Lithium:
    • Gas optimizations completed.
    • Lithium implementation into Web3 Wallet started.
    • Unilateral settlement finished, refactored Lithium V1.0 complete.
    • Lithium indexer almost complete.
    • Lithium V1 will be fully functional by the end of this month.

Financial allocation

  • Dex Development, R&D: 939,986 HDN & 12,521 USDT
  • Multi-sig / DAO Management: 345,550 HDN & 2,378 USDT
  • Operations: 193,913 HDN & 612 USDT
  • Marketing: 396,386 HDN & 9,200 USDT
  • Cex Listings: 127,084 HDN & 30,000 USDT

Accomplishments

  1. Marketing:
    • Marketing agencies reviewed, discussions with four companies are being evaluated
    • Several monthly recap articles published
    • Core DEX trading competition initiated and completed
  2. Core DEX:
    • Added Arbitrum-ETH/ETH trading pair
    • Released new wallet version with UI fixes
    • Rolled out LSSD and Vortex bot implementation to beta testers
    • Added certificate for Windows to avoid warnings during installation (transfers to Web Dex)
    • Core DEX trading competition completed with $100,000 traded off-chain p2p
  3. Web3 Wallet & WebDEX:
    • NOVA release was very successful, positive feedback received
    • Channel rental manager finished, currently getting implemented
    • Public testnet release and several UI improvements & bug fixes
    • Implemented Lithium protocol (v1)
    • Started multi-hop (Lithium V2) team testing
    • Released transaction page improvements to beta testers
  4. DAO:
    • USDT on Aave: We provided 40k, now worth around 40.9k
    • USDC on Aave: We provided 20k, now worth around 20.34k
    • DAO vote passed to allocate 5 million HDN for ongoing development
    • DAO forum live with active proposals
    • VC outreach continues emphasizing marketing needs as the first trench
  5. Lithium:
    • Gas optimizations completed and V1 is fully functional
    • Lithium indexer is completed
    • Unilateral settlement logic implemented
    • Multi-path payments and hashlock resolution implemented

Financial allocation

  • Dex Development, R&D: 1,924,754 HDN & 24,510 USDT
  • Multi-sig / DAO Management: 342,683 HDN
  • Operations: 157,873 HDN
  • Marketing: 244,466 HDN & 294 USDT
  • Legal: 475 USDT

Accomplishments

  1. Core DEX Sunsetting
    • Core DEX officially sunset following the successful passing of DAO Proposal #32.
    • All state channels were closed and user funds returned to their Layer 1 addresses. Users can still withdraw by importing their wallet seed phrase into any EVM or BTC wallet.
  2. Web DEX and Web3 Wallet
    • Channel rental manager finalized and tested, with the feature rolled out to closed beta testers.
    • Lithium v2 publicly released, enabling multi-hop transactions, with Titans acting as intermediary nodes.
    • Orderbook development continues, with liquidity logic and swap services nearing completion. Early tests have connected backend and frontend systems.
    • Infrastructure improvements, including self-hosted microservices and Bitcoin nodes, reducing reliance on third-party providers.
  3. Lithium Protocol
    • Introduced invoice-based transactions to improve structure and control in off-chain payments.
    • Enhanced multi-path payment and hashlock features, as well as the messaging system for invoice transactions.
  4. Strategic and Financial Decisions
    • Removed liquidity from Toobit due to low trading volume, focusing on MEXC instead.
    • Prioritized Web DEX development while maintaining cost efficiency in operations, marketing, and management as we prepare for the upcoming product launch.
  5. Web DEX Backend
    • Exposed invoice-related swap service functions, continuing work on the channel backup service, and upgraded core libraries (BDK and LDK) to resolve compatibility issues.
  6. Web DEX Frontend
    • Addressed user feedback to improve channel rental and Lithium testing. Resolved UX bugs, including issues with amount input fields.
  7. Web DEX Orderbook
    • Swap service and liquidity logic development advanced, with configurable fees for takers and makers.
    • New invoice decoding functions implemented and tested, resolving minor unit test issues.

Financial allocation

  • Web DEX Development, R&D: 2,722,193 HDN & 33,660 USDT
  • Multi-sig / DAO Management: 415,560 HDN
  • Operations: 331,144 HDN
  • Marketing: 67,611 HDN & 1,902 USDT

Accomplishments

  1. Web DEX and Web3 Wallet:
    • Frontend Development:
      • Continued work on the Simple Swap UI, with significant debugging and testing to streamline swap functionality for the Alpha release.
      • The first version of the liquidity provider tab was completed, and development of the order book UI has commenced.
    • Backend Development:
      • Continued work on wallet functions as a result of testing.
      • Improvements made to the channel rental manager, Lithium, and Lightning Network payments.
      • Progress on the channel backup service, achieving the first successful Bitcoin channel backup and restore.
    • Orderbook:
      • Reviewed and updated orderbook logic to handle edge cases, improving the order matching.
      • Added channel balance validations, improved response to failed swaps, and updated logics behind adding/removing liquidity orders.
  2. Lithium Protocol:
    • Lithium V3 has been completed, introducing:
      • Lower gas fees.
      • Parallel transaction handling.
      • Independent asset channel updates for a better user experience.
  3. Alpha Release:
    • The Alpha version of our Web DEX was launched on December 12th, 2024, initially accessible to 10 testers.
    • Over 1,600 swaps completed with a 96.2% success rate during internal and early Alpha testing.
    • Ongoing refinements based on tester feedback.
  4. Marketing / PR:
    • Rolled out the "Engage-to-Earn" initiative, rewarding community engagement on Discord and X.com with micro HDN, significantly boosting interaction.
    • Refreshed branding with updated cover images and engaging new promotional videos.
    • Launched a new website, showcasing our Web3 Wallet and overhauling the documentation page.
    • Opened the Alpha Waitlist for the first batch of testers, with plans to expand as stability improves.
    • Published detailed articles, including a yearly recap, to keep the community informed.

Financial allocation

  • Web DEX Development, R&D: 1,140,130 HDN & 31,606 USDT
  • Multi-sig / DAO Management: 398,807 HDN
  • Operations: 156,553 HDN
  • Marketing: 91,969 HDN & 3,573 USDT
  • Legal: 7,172 USDT

Roadmap

Hydranet's upcoming development milestones

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