Hello from Hxro headquarters!
The Hxro community is off to a hot start in the new year, achieving key development milestones, introducing new integrations and partnerships, and other accomplishments that continue to push the network forward on its path toward’s progressive decentralization and rapid protocol expansion. In this update:
- Network stats on the rise!
- sAMM Liquidity Pools Volume Increase
- Bonk or Bust Integration
- Degenerate Ape Academy has entered the Hxro Community!
- V1 Analytics Dashboard Release
- esHXRO Supplemental Reward Epochs
As of 31 January, total Hxro Network volume was 65,121,780 USDC.
Hxro Network volume breakdown as of 31/01/2023
Hxro Derivatives saw a 24.21% jump in 30-day ADV to 134,342. Lifetime volumes through 31 January stood at 11,268,101.00 USDC. During the period, the protocol saw the addition of one new market market as well as the addition of the protocol’s first calendar spread markets.
Derivatives notional volume as of 31/01/2023
Hxro Parimutuels 30-Day ADV came in at 1,277,201 USDC. sAMM protocol liquidity was significantly increased during the period as the first probability node went live (more on this below). With the increase in sAMM pool sizing, the protocol saw a 451% increase in non-sAMM (fee paying) activity. As sAMM probability nodes continue to strengthen, we anticipate a continued increase in sAMM liquidity.
Parimutuel notional volume as of 31/01/2023
Since our last community update on 16 December 2022, Hxro Network has seen a 27.67% increase in total HXRO tokens staked from 38,478,399 to 49,124,504. This includes HXRO, esHXRO, and LHXRO. Network effective stake weight has also increased 32.23% from 116,076,404.11 to 153,484,775.
We continue to see consistent and incremental growth in both derivative and parimutuel volumes. As the Hxro Network ecosystem is full value accrual (100% of protocol revenue circulates back to the network), 50% of all network fees are awarded to staked HXRO token holders. As the breadth and scale of network pools continue to grow, so too will the breadth of network rewards. As an example, with the recent launch of BONK-denominated pools, HXRO-staked wallets will now receive their pro rata share of $BONK rewards in addition to USDC and esHXRO. We anticipate a significant increase in protocol and network activity and therefore associated revenues in the coming months. The primary drivers of this will be: – Early integration partners going to mainnet
– The launch of daily volume tier network incentives
– Increase in sAMM pool sizes
– Increase in capital block maximums on derivatives
The breakdown of distributed rewards is as follows:
Network fees collected as of 31/01/2023
As most of our community members are aware, since 2020, the primary marketplace for the HXRO token was on FTX International (FTX.com). As a result of last quarter’s events, the Foundation felt it was prudent to temporarily reduce its token market exposure on Solana DEX markets. Now that the market has given signs of regaining stability, the protocol has begun to increase liquidity across both CEX and DEX markets. As a first step, a new HXRO/USDC pool was launched by the community 27 January on Orca. We plan to see a continued increase in liquidity within this pool, as well as establish new pools as the protocol grows. Last, we have begun talks with multiple exchange venues and market maker relationships to discuss new $HXRO listings.
The network launched its first $BONK denominated pools to support BONK or BUST – a newly integrated dApp to Hxro’s Parimutuel Protocol
On 19 January, BONK or BUST, a simple High/Low style DeFi trading game powered by the Hxro Network Parimutuel Protocol, went live as the latest application integrated to the network. Integration with the Hxro Parimutuel protocol allows BONK or BUST to provide users with the key benefits of on-chain markets, including real-time transparency; provably fair, consensus-driven settlement; and consistent, dependable contract pool liquidity.
BONK pools were supplemented through a grant of 7.5 billion $BONK provided by the BONK DAO.
To maintain consistency with the BONK DAO’s mission, the network agreed to burn a portion of its BONK fees as they are collected. The $BONK fee allocation breakdown is as follows:
- 37.5% of the fees collected in $BONK will be burned
- 12.5% of the fees will be collected by the network treasury
- 50% of the fees will be distributed to staked token holders on Hxro Network
Since the 19 January launch, the network has burned 39,617,403 $BONK in accumulated fees from $BONK pools. The network also paid out 52,823,205 $BONK to staked HXRO token holders.
Most importantly for the Hxro community, the BONK or BUST build served as a primary example of the ease with which community developer(s) can leverage Hxro’s generalized infrastructure and SDKs to quickly build new and innovative dApps and connect to turnkey protocol liquidity. Read the full integration announcement here. Learn more at bonkorbust.com or follow on Twitter @bonkorbust.
sAMM Parimutuel Liquidity Pools were increased in both 1-minute and 5-minute BTC-USDC parimutuel pools.
Hxro’s Smart Automated Market Maker protocol (aka “sAMM”) is guaranteed to provide two-sided liquidity for every parimutuel event being offered by the protocol, ensuring that there will always be a two-sided market for participants to bet with (or against). The protocol has been scaling its BTC/USD pools in recent weeks, with its 1 and 5-minute parimutuel markets increasing their guaranteed base liquidity to $1,250 USDC and $3,500 USDC per event, respectively (a 250% and 700% increase!). In the coming weeks, we will see a continued increase in the base liquidity of these pools. Contributors plan to launch additional USDC-denominated pools on SOL/USD, ETH/USD, and other markets as requested by application builders and users. The protocol goal is to allow for community-initiated pools whereby anybody can easily create, provide initial funding, and maintain a parimutuel pool (think Uniswap meets parimutuels). We hope to see this come to fruition later this year.
For more information on the sAMM protocol, you can read here.
In part 2 of our HXRO Staking and Liquidity Incentives blog posted in mid-2022, we talked about the network’s plan for its initial incentives program for both derivative and parimutuel markets. Well, it’s almost here, and there are 50 million esHXRO in rewards that will be distributed to market participants. Hxro’s “Road to $1 Trillion” is a daily volume incentives program that will run for both derivative and parimutuel markets. For derivatives, 40M esHXRO will be allocated to the program and will be broken into 1,000 individual $1 Billion volume epochs. Each trading day, the protocol will calculate the total notional derivatives volume traded across all network applications. Based on this number, a predetermined amount of esHXRO will be released and rewarded pro-rata to all wallets that participated in that day’s volume.
For parimutuel markets, the initial daily volume incentives program will be launched with 5 Million esHXRO. The program will distribute 5m esHXRO over the course of $100,000,000 notional trade volume in parimutuels, ex-sAMM. Rewards will be distributed pro rata among parimutuel market participants, based on their share of volume. There is another 5 million HXRO set aside for a daily incentive reward program that will be announced in the near future.
Hxro’s primitives are designed to support a wide array of derivative applications. After all, traders having many different reasons to transact is what creates robust market structure! As the network begins to turn its focus toward scaling, it is more important than ever that our coveted developer community is given the best guides and tools to quickly and effectively build. Therefore, core contributors have been leaning heavily into enhancing Hxro developer documentation. This includes dramatically improving docs for existing Dexterity and Parimutuel SDKs, as well as supplemental written and video resources to increase the ease with which builders can compose with network primitives. You can access upgraded developer docs and resources on the Hxro Gitbook.
The v1 of Hxro Network’s Analytics Dashboard was launched on 10 January, and can be accessed at app.hxro.finance. The V1 dashboard provides real-time data on overall network transaction volume, fee collection, and HXRO token staking data, as well as traded volume and fee collection from Hxro’s Dexterity and Parimutuel protocols.
On 26 January the Degenerate Ape Academy (DAA), a leading Solana NFT consortium, announced to its community that it will be partnering with the Hxro ecosystem.
This partnership, the first of its kind in the Solana ecosystem, will bring together a top NFT projects (Degen Apes, Degen Trash Pandas and Drop Beers) with Hxro Network in an effort to intersect the value proposition of a viral NFT community with a DeFi derivatives ecosystem. The concept of the partnership is to provide value and utility to DAA holders through a comprehensive quest-based incentives and rewards system within the Hxro Network ecosystem. We believe this partnership will test already proven gamification concepts to create and maintain community retention while simultaneously creating significant opportunities for both DAA NFT holders and the network ecosystem. More to come on this in coming days….
As part of our continuing efforts to maintain the network’s path towards decentralization of the Hxro ecosystem, contributors will begin to post material development initiatives and protocol proposals to the Hxro Network discourse. Although the network has not yet instituted DAO-based community voting protocols, we feel this is a constructive next step to engage those interested in providing constructive value through community discourse and feedback before new initiatives are implemented. Please watch for notifications in the Hxro Community Discord for more on this in the near future.
- ICE, London – February 2023
- Consensus by CoinDesk, Austin, TX – April 2023
- SBC Casino Beats, Malta – May 2023