Financial reports - Hydranet Documentation

2025

Accomplishments

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.
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.
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.
MultiSig / DAO:
- New DAO proposals have been published, and additional MultiSig members have been onboarded following community votes.
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: 1,411,629 HDN & 23,858 USDT
- Investment focused on refining Web DEX functionalities, frontend/backend improvements, and Lithium V3.
Multi-sig / DAO Management: 0 HDN & 12 USDT
- Supporting DAO governance and multi-signature wallet operations.
Operations: 138,104 HDN & 807 USDT
- Covering core operational expenses to ensure efficient project management.
Marketing: 252,180 HDN & 1,395 USDT
- Funding promotional efforts, community engagement, and event participation.

Accomplishments

Web DEX Frontend:
- Completed a new WebDEX Build featuring critical enhancements such as the Channel Backup Service and Auto Reconnect Function.
- Shipped this updated version to alpha testing groups for validation.
- Fixed minor bugs and resolved orderbook-related issues reported during testing.
- Enhanced performance and addressed various UI challenges, improving user experience.
- Added user-requested features, including displaying earned fees in the LP Tab and enabling edits to the lower amount field on the swap page.
Web DEX Backend:
- Updated the authentication service logic to improve security and efficiency.
- Refactored and implemented the Backup-Service across server, client, and HydraApp components.
- Introduced the Auto-Reconnect feature to ensure uninterrupted service.
- Improved Bitcoin transaction synchronization speed for faster processing.
- Updated the Rental Manager to display available rental capacity, enhancing transparency.
- Implemented unified subscriptions for all events, streamlining backend operations.
- Added logic to automatically cancel expired Lithium invoices, improving system reliability.
- Enabled automatic withdrawal of Lithium channel rentals, simplifying user interactions.
- Implemented Keep-Alive functionality for gRPC microservices to maintain service stability.
- Enabled communication compression to optimize performance across the platform.
- Introduced advanced estimates for Lithium operations to provide better user insights.
- Deployed the first iteration of Watchtower-related sanction and penalty procedures to address malicious behavior.
Lithium Protocol:
- Added behavior to handle channel expiration, ensuring proper lifecycle management.
- Updated the protocol to the latest Sepolia version for compatibility and performance.
- Enhanced Lithium messaging following the integration of watchtower functionality.
- Implemented the initial iteration of Multipair Support, enabling broader trading options.
- Successfully executed the first multipair swaps, marking a significant milestone.
MultiSig / DAO:
- Passed DAO Proposal #35 with unanimous approval across all five voting rounds (35-1 to 35-5), securing funding for OTC sales and network growth.
- Transferred the approved funds to a multi-signature controlled address (0x59D219D045d9DD3AA0709d17b14A3beBEC77e337) for secure management.
- Allocated funds from the Hydranet vault address to support the initiative.
- Initiated steps toward the intended utilization of these funds, with quarterly updates to follow.
Marketing & PR:
- Published monthly recaps for April, May and June 2025, keeping the community informed.
- Announced and launched the Public Alpha Phase of the Hydranet WebDEX on May 23, 2025, making it accessible at https://wallet.hydranet.ai/ without registration or login.
- Restored full services for HDN on WhiteBit as of May 13, 2025, following verification.
- Updated platforms like Coinmarketcap, Coingecko, Arbiscan, and DeBank with the current token contract information.
- Released the Q1 2025 financial report and a Public Alpha article, accompanied by updated guides and tutorials.
- Prepared marketing materials and plans for the upcoming Open Beta and Mainnet Launch.
Other Accomplishments:
- Successfully completed the HDN Token Swap, with the new contract live at 0xB0F66Bdb39acBb043308eb9Dbe78F5bB47ea5430 as of April 14, 2025.
- Distributed new HDN tokens via airdrop following a snapshot on April 13, 2025.
- Restored full services on XT.com and WhiteBit, with WhiteBit resuming operations on May 13, 2025.
- Updated the Ledger database with the new HDN contract, pending deployment in upcoming cycles.
- Released the Hydranet WebDEX to the public with initial features like cross-chain swaps and advanced liquidity pools.
- Updated the project roadmap and tokenomics, reflecting strategic priorities for 2025.
- Announced an open position for a Social Media Manager to bolster community engagement.

Financial allocation

Web DEX Development, R&D: 1,230,420 HDN & 25,523 USDT
- Funds directed toward enhancing Web DEX features, improving frontend and backend stability, and advancing the Lithium protocol.
Multi-sig / DAO Management: 0 HDN & 0 USDT
- Supporting governance operations and secure management of DAO funds.
Operations: 255,312 HDN & 1,742 USDT
- Covering essential operational costs to ensure seamless project execution.
Marketing: 350,479 HDN & 10,269 USDT
- Funding community outreach, promotional activities, token swap costs and preparations for upcoming launches.

Accomplishments

Web DEX Development:
- Launched the Open Beta of the Hydranet Web DEX, transitioning from Alpha with dozens of bug fixes, UX upgrades, and new features including SimpleSwap (one-click cross-chain swaps), Order Book Mode (CEX-style decentralized trading with limit orders and gasless settlement), Multi-Pair Routing (automatic trade routing through intermediate pairs for better liquidity), 0-Confirmation Channel Rentals (instant use of rental funds for cross-chain trades without waiting for blockchain confirmations), and EVM Watchtowers (automated offline protection for EVM state channels).
- Validated off-chain swaps as the core trading mechanism, enabling gas-free, bridge-less cross-chain trades with self-custody and frontrunning protection.
- Fixed wallet syncing stability issues, improved real-time order book candle updates, resolved interface button bugs, corrected SimpleSwap logic, and addressed Rental Manager errors for channel updates.
- Laid groundwork for arbitrage bots by testing integrations with external exchanges like Binance testnet to align prices.
- Migrated the Lithium sub-graph indexer from The Graph to SubQuery for better efficiency, simplified adding new blockchains, removed indexing limits, and enabled faster synchronization without full scans.
- Redesigned the order book, completing order management and peer matching engine components.
- Launched the Beta Stats Dashboard to display real-time metrics like swap volumes, unique traders, user growth, collected fees, and breakdowns by currency and timeframe.
Marketing & Advertisement:
- Released feature videos on YouTube demonstrating Beta capabilities.
- Launched a new blog page on the Hydranet website and migrated key articles from Medium to increase website traffic.
- Released a feature video introducing Hydranet as an off-chain trading layer, which gained strong traction on X.
- Conducted a Telegram beta campaign targeting South Asia, generating clear interest in the project.
- Published a series of monthly recaps, covering open beta launch, new features and improvements to the Web DEX, and growth and engagement efforts.
- Hired Mito as Social Media Manager, which later transitioned to Marketing Manager, to boost online presence and plan for Hydranet’s mainnet launch.
- Hosted a Live AMA to demo the DEX and answer questions in preparation for Open Beta.
- Preparations for upcoming conferences attendance.
Community Engagement / Other:
- Updated the Engage-to-Earn program by shifting from standard HDN rewards to an XP-based system for unlocking channels, roles, and perks, while retaining HDN for withdrawals, tips, gifts, and special events.
- Encouraged community testing of the Beta build with step-by-step documentation and channels for bug reporting and feedback, leading to faster resolutions.
- Expanded engagement through increased social media activity on the official X account with posts and interactions.
- Updated the Tokenomics page with clarifications, removals, shortened sections for readability, new visuals including an updated pie chart, increased emphasis on pools, delegation, and negative fee mechanisms, and defined mainnet expectations including a Titans timeline.

Financial allocation

Web DEX Development, R&D: 1,094,170 HDN & 37,244 USDT
Multi-sig / DAO Management: 0 HDN & 0 USDT
Operations: 87,437 HDN & 146 USDT
Marketing: 308,644 HDN & 19,794 USDT

2024

Accomplishments

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.
Core DEX:
- LSSD work completed.
- New pairs and swaps working without any issue.
- Orderbook fixes rolled out.
- LSSD/Vortex running smoothly, 3rd parties testing
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
Tokenomics:
- Tokenominc v1.5 update
- Role descriptions updated.
- Collaterals and fee distribution completed and voted in.
- Tokenomics simulator completed
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
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

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.
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.
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.
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.
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.
Web DEX Frontend
- Addressed user feedback to improve channel rental and Lithium testing. Resolved UX bugs, including issues with amount input fields.
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
- Increased investment in Web DEX development, channel rental, and Lithium v2 features.
Multi-sig / DAO Management: 415,560 HDN
- Focused on efficient operations post-Core DEX sunsetting.
Operations: 331,144 HDN
- Maintained lean operational spending.
Marketing: 67,611 HDN & 1,902 USDT
- Preparing campaigns for the upcoming Mainnet release.

Accomplishments

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.
Lithium Protocol:
- Lithium V3 has been completed, introducing:
  - Lower gas fees.
  - Parallel transaction handling.
  - Independent asset channel updates for a better user experience.
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.
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
- Focused on refining Web DEX functionalities, frontend, backend, orderbook enhancements, and Lithium V3 deployment.
Multi-sig / DAO Management: 398,807 HDN
- Supported DAO operations.
Operations: 156,553 HDN
- Maintained lean operational spending to support development efforts.
Marketing: 91,969 HDN & 3,573 USDT
- Promoted the Alpha release, new website, social media content, articles, and community engagement initiatives.
Legal: 7,172 USDT
- Ensured compliance and protected the project, including yearly foundation dues and fundraising guidance.

Roadmap

Hydranet's upcoming development milestones

Official links

Continue to explore Hydranet