Hashflow (HFT): An Overview of the DeFi Trading Protocol

Hashflow is a decentralized trading technology that provides enhanced protection against slippage and other problems associated with AMM (Automated Market Maker). The issues have been resolved with the assistance of a novel model that was established by the people responsible for the project. As a result of the development of this model, market makers will have access to a greater variety of alternatives for controlling liquidity.

The Aim of Project and Target Audience

The vast majority of today’s decentralized protocols, such as Uniswap and PancakeSwap, run on AMM, which stands for automated market makers. This is a perfectly serviceable choice, although it does come with a few drawbacks:

• Risks of sandwich attacks.
• Risks of intermittent losses.
• Low efficiency in terms of capital work.

Hashflow, on the other hand, implements a somewhat unique architecture that enables market makers to effectively manage liquidity pools. The advantages of decentralized finance, including its high efficiency and increased security, can be reaped by liquidity providers in addition to regular traders in this fashion.

Market makers are provided with the possibility to receive liquidity and appraise assets while taking into consideration the development of prices outside the chain and based on cryptographic signatures. Because of this, it is possible to implement complex pricing algorithms that take into consideration not only the data contained in the blockchain but also other factors such as degrees of volatility, the price history of traded currencies, and so on.

The fact that merchants will have access to better prices is the most essential aspect of this situation for them. This means that there is a greater potential for lucrative deals. On Hashflow, there is no such thing as slippage because all trades are carried out at the price that is specified at the time the trade is carried out.

Cross-chain exchanges

Finally, users of the Hashflow protocol get the opportunity for fast cross-chain exchanges without the use of external bridges. For this, the request for quotation (RFQ) model is used. Market makers have an obligation to sign quotes cryptographically, and these quotes remain unchanged throughout the transaction, protecting traders from slippage. This works both in exchanges within the same blockchain and between different ones.

HFT token and distribution on Binance Launchpool

HFT is an ERC-20 / BEP-20 token whose main purpose is decentralized protocol governance. A total of 1,000,000,000 HFTs have been released in the genesis block. They will be distributed as follows:

• 53.18% – ecosystem development, including treasury, future community rewards, partnerships, market maker loans, etc.
• 25% are early investors.
• 19% is the current team.
• 2.5% are future employees.

1% of the original supply of HFT tokens is set aside for the treasury, and tokens from this pool can be used at a later date to fund grants, community projects, and other types of programs.

The Bottom Line

It goes without saying that there are already more than enough decentralized exchanges available on the market today; consequently, new ventures have to provide something that is fundamentally different in order to entice an experienced user.

It seems that the developers of Hashflow came up with a solid concept, one that includes both no slippage and cross-chain transfers. It is imperative that we observe the progression of the project. In most cases, having support from such a huge exchange as Binance is good and almost immediately gives the project with a significant audience that is dedicated to it.