LSDFi Infra Hydro Protocol Closes Strategic Funding Round to Boost Optimization and Utility Throughout Ecosystem
In Brief
LSDFi platform on Injective Network, Hydro Protocol concluded a funding investment round to support the ongoing development of the project.
Infrastructure platform built on the Injective Network Hydro Protocol (HDRO) successfully concluded an investment round led by Injective, Vessel Capital, Moonhill Capital, SkyVision Capital, Exnetwork Capital, and contributors such as Quantstamp, Black Dragon, Trinito, Verse2, Paka, Coinseeker, DoraHacks, among others.
The company plans to use the newly raised funds to support the ongoing development of the project.
Hydro Protocol functions as the primary infrastructure platform for yield and liquidity strategies on the Layer 1 blockchain for decentralized finance (DeFi) applications Injective Network, integrating Liquid Staking Derivatives (LSD) and Real World Assets (RWA) to present a dedicated LSDFi product suite. Being among the first LSD/LSDFi (LSD Finance) protocols on Injective Network, Hydro Protocol seeks to introduce enhanced optimization and utility throughout the ecosystem.
Hydro Protocol serves as a foundational force behind an LSD-centered ecosystem LSDFi, anchored by a core LSD asset–Hydro Protocol’s hINJ. While LSDFi can manifest in various structures, Hydro Protocol’s approach involves providing Real Yield Assets on the Injective Network.
Highlighting the user-friendly application of liquid staking, Hydro Protocol presents three distinct products, including Staked Assets, Farming, and Auto Compounding.
The main product of Hydro Protocol, LSD, provides liquid staking functionality, marking the inception and culmination of all aspects related to Hydro Protocol and Injective Network.
Another essential product is yield optimization “The Farm” for liquid assets. It allows users to put their hINJ to work by staking their minted hINJ, gaining additional yields on their staked tokens. The farming yield operates as a form of airdrop, providing users with added yield after staking. During a pre-determined period, users have the opportunity to engage in “farming” for additional yield. Similar to a traditional farm, this yield is available for a temporary season and has a set expiration. Following the tokenomics of Hydro Protocol, a section of HDRO tokens is utilized to enhance rewards.
Auto Compounding offers users the convenience of a “set it and forget it” approach, allowing them to optimize staking yields and enhancing rewards with INJ assets, eliminating the need for users to manually claim and re-stake their INJ rewards, saving both time and transaction fees.
Furthermore, Hydro Protocol has its token HDRO that serves as the governance and utility token. Capped at a maximum supply of 1 billion tokens, HDRO is structured to provide advantages to HDRO holders and stakers. The implementation of a value accrual mechanism enables the capture of real yield, with the proceeds proportionally utilized for HDRO buybacks. This captured value is then distributed to HDRO holders, offering benefits to stakers in the process.
Hydro Protocol Launches Mainnet and Outlines Future Plans
Launched in 2023, Hydro Protocol recently marked a significant milestone by launching its mainnet at the end of January.
Looking ahead to 2024, the project has an ambitious roadmap. Hydro Protocol aims to develop the LSDFi ecosystem on Injective Network further and bring RYAs into existence. The project also plans to establish partnerships with other projects both within and outside the Injective Network, creating additional utility for HDRO holders.
The recent Hydro Protocol’s successful investment round, coupled with its innovative approach and recent mainnet launch, positions it as a promising player in the decentralized finance landscape, offering a unique blend of liquid staking derivatives and real-world assets on the Injective Network.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
