Innovative Liquid Staking on Injective Network: Hydro Protocol

Hydro Protocol is an important component of the Injective Network ecosystem, serving as the first and only localized liquid staking derivatives (LSD) protocol, bringing new levels of optimization and utility to the network. Hydro's goal is to become the core driving force behind the development of the LSDfi ecosystem on Injective.

The Strategic Significance of Hydro

As a local liquidity staking derivative protocol, Hydro Protocol plays a transformative role in the Injective ecosystem. Unlike other projects that adopt cross-chain solutions, Hydro is fully dedicated to the development of Injective, with its success closely tied to the prosperity of the network. The Hydro team firmly believes that Injective is the ideal platform to realize the potential of LSDFi and is expected to lead innovation and application in the DeFi space.

Core Functions

Liquid Staking Derivatives (LSD)

The flagship product of Hydro Protocol is liquid staking derivatives. Users can deposit INJ tokens and receive hINJ tokens as a reward, and immediately start earning staking rewards. hINJ, as Hydro's liquid staking token, not only enables instant staking returns but also can play a role in other DeFi protocols. By minting hINJ, users can explore more opportunities within the Injective ecosystem. Hydro is collaborating with multiple projects to strive to make hINJ the staking standard across the entire network.

mining mechanism

Hydro Protocol will provide users with one of the first application scenarios for using hINJ tokens. By depositing hINJ, users can earn considerable token rewards.

automatic compound interest

To maximize users' staking rewards, Hydro Protocol introduces an automatic compound interest feature. This innovation addresses the inconvenience of users needing to manually claim and re-stake INJ rewards in traditional staking models, saving both time and effort while also reducing additional network fees.

Real Yield Aggregator

Hydro plans to launch a real yield aggregator, marking a significant breakthrough in the LSDFi space. Unlike traditional LSDs, the real yield aggregator can pool real yields from multiple sources and integrate them into a comprehensive index for distribution to users. This feature aims to provide users with low-risk, diversified, and easy-to-use yield opportunities, promoting further development of LSDFi.

Token Economics

HDRO token

HDRO is the governance and utility token of the Hydro Protocol, with a total supply of 1 billion. It is designed with deflationary characteristics and value accumulation, aimed at benefiting holders and stakers. The protocol has implemented a value capture mechanism that uses real-world revenue to buy back HDRO and distribute it to holders.

The importance of HDRO ###

• Appreciate in value with the success of Hydro Protocol
• Holders enjoy 30% of the redistribution fees of the protocol.
• Plan to include real yield index derivatives
• As the governance token of Hydro
• Can enhance the yield rate of farm activities

Token Allocation

• Private Placement: 25%
• Community Distribution: 15%
• Founding Team: 15% (4-year lock-up period)
• Foundation: 20%
• Early investors and advisors: 2.5%
• Bug rewards and legal: 2.5%
• Ecological Construction: 20%

Development Roadmap

The Hydro Protocol is scheduled to officially launch in September 2023.

Q3/Q4 2023 - Project Launch

• Token Generation Event (September 2023)
• Listed on centralized and decentralized exchanges
• Expand the application scenarios on Injective

2024 - Develop LSDFi on Injective

• Launch real yield aggregator
• Increase integration with third-party protocols

Summary

As an important innovation in the DeFi space, liquid staking derivatives are in a stage of rapid development, and Hydro Protocol is at the forefront of this wave. Its goal is to provide users with opportunities for liquidity, utility, and wealth accumulation. Hydro's vision is to become the preferred native LSD protocol on the Injective Network, building its liquid staking token (LST) into the standard for constructing the LSDFi ecosystem. With the upcoming launch of a real yield aggregator, Hydro has laid out a clear strategy for the next phase of growth for LSDFi on Injective.