Hashflow is a DEX built on a multi-chain platform, currently deployed to Ethereum, Avalanche, Arbitrum, Optimism, Polygon, and BNB Chain. Dedicated to solve the problems of impermanent loss, slippage, and risk of sandwich attacks in AMM, Hashflow proposes the request-for-quote (RFQ) model. In short, it helps crypto market makers write market making strategies into smart contracts, manage the liquidity pool provided by LPs more efficiently than AMM, and bring market making from centralized exchanges to decentralized exchanges.
Instead of a constant-product pricing function commonly used by AMMs, Hashflow allows market makers to source liquidity from anywhere and price assets using off-chain pricing functions, backed by cryptographic signatures. By moving pricing off-chain, market makers can use more sophisticated pricing strategies that factor in off-chain data like historic asset prices, volatility, and other real-world information that allows them to effectively price assets.
According to the project, $HFT is the governance token for the Hashflow protocol. It will be an ERC-20 token deployed on Ethereum mainnet.
- Hashflow is a decentralized exchange that allows users to trade any asset on any chain in seconds simply by connecting their wallet. All trades are commission-free, and all price quotes are executed at their displayed price.
- Hashflow allows users to trade with zero slippage and full MEV protection.
- Hashflow offers fully-native cross-chain swap functionality without the use of bridges or synthetic assets, enabling seamless trading across one or more chains with guaranteed price execution.
- Hashflow’s RFQ model allows Market Makers to price any asset class and is no longer limited to stable coins or blue chip assets. This means Hashflow can offer seamless trading of products (i.e. options, ETFs) that were previously impossible in DeFi.
How Does RFQ Work?
Hashflow uses DeFi-native RFQs to fetch quotes from market makers who are responsible for managing liquidity in the pools. Market makers are required to cryptographically sign quotes that remain unchanged for the duration of the trade. This ensures that the price is guaranteed and cannot be front-run or sandwich attacked. It also protects traders against slippage if there is significant price movement between the time it takes to validate the transaction on the source chain and relay the payload on to the destination chain.
The steps involved in the lifecycle of an example cross-chain swap are detailed as follows:
- Trader requests a quote to sell 10 $ETH on Ethereum (source chain) and buy 20 $AVAX on the Avalanche (destination chain)
- Market maker provides a signed quote to the trader
- Trader submits the transaction on Ethereum with the signed quote as the payload
- The liquidity pool smart contract on the source chain performs security checks, transfers funds from trader's wallet into the pool, sends the payload, and calls the gateway smart contract on the source chain
- Once the transaction on the source chain is successful, the gateway smart contract triggers an event
- The validators then use the event to validate the transaction and submit the proof along with the payload to the gateway endpoint on the destination chain
- The relayers then submit the payload to the destination chain and transfer $AVAX to the trader’s wallet on the destination chain
As detailed, the above steps do not rely on external bridges or require users to escrow their assets on the source chain to mint a bridged asset on the destination chain. Users can swap any asset natively by leveraging signature-based pricing and RFQs.
- Bridgeless cross-chain swaps: Hashflow allows users to seamlessly swap assets across chains within minutes without the need for external bridges. All Hashflow trades are fully protected from both slippage and MEV exploits whether the trade happens locally on one chain or across chains.
- Zero Slippage: All Hashflow quotes are executed at the displayed price.
- MEV protected trades: Cryptographic signatures make front-running impossible. Traders can keep what they earn.
- The Hashverse: The Hashverse is the first-ever storyverse-driven, gamified DAO and governance platform. With an immersive storyverse developed by leading Hollywood creative agency, Superconductor, the Hashverse represents the collective of token holders that will decide the future of the Hashflow protocol.