Business News Report
February 12, 2024

LSDFi Infra Hydro Protocol Closes Strategic Funding Round to Boost Optimization and Utility Throughout Ecosystem

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.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

More articles
Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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