Between the transformative global events of this past year and the recent boom we are experiencing in decentralized financial technologies, it is clear that as an industry, we are at the forefront of establishing the new foundational pillars for transactional networks and governance to scale through decentralization. While Hxro continues to deliver on its mission as a platform, we feel that as a network it can create exponentially more value, become censorship-resistant and reach long-term sustainability through decentralization and active community participation.
Hxro is a platform that offers a unique brand of trading. We take what could otherwise be viewed as complex options and derivatives products and distill them into simple, easy to understand and uniquely experiential ways to trade. While we have historically presented these markets through a more gamified UI/UX, the underlying products have use-case that extends well beyond what we have created to date. The real value is not necessarily in the way we present markets, but in the product engines that power the platform. Our vision is to expand Hxro from a single platform into a fully decentralized trading network powered by protocols that simplify and solve the complexities of trading. As we execute on this, we will set forth a path to progressively evolve the network away from a single point of control, risk and failure (our team) into an open, censorship-resistant trading network that is governed by its community of builders, operators and users.
Choosing an L1
We are excited to announce that Hxro has chosen Solana as its L1 blockchain. It is clear that different blockchains have no shortage of both strengths and weaknesses. Our choice was made based on what we feel Hxro will need both now and at future scale in terms of speed, throughput capabilities, and cost efficiency. To spend the next several months and years ferociously building derivatives trading protocols only to find out that our L1 couldn’t handle the transaction speed and throughput required to run a scaled, tradeable, real-time options chain effectively would be catastrophic. As a high-speed single-layer blockchain that supports over 50,000 tps and 400ms block time, Solana was seemingly built for on-chain trading applications that want high performance and cost efficiency while still being decentralized. We could not be more excited to work with their incredibly talented team and community.
As part of the Solana ecosystem, we are incredibly excited to explore the different ways to integrate and compose with other Solana builders. Most notably with Solana-based DEX Serum. Serum has blazed a path by building out many of the critical foundational building blocks required for Hxro's network to build its financial ecosystem. The teams behind Serum come from backgrounds similar to Hxro's founding team and share a similar vision for on-chain trading in the future. Think of it as if the Chicago Board Options Exchange integrated infrastructure, tooling and turnkey liquidity from the Chicago Mercantile Exchange. Imagine having turnkey access to Hxro options markets packaged with perpetual swaps spun up from Serum to create a fully hedged, single-click simplified option spread market traded in a central limit order book! Or, a Hxro option Automated Market Maker protocol with built-in position management that runs a constant dynamic hedging strategy using Serum spot, swaps and futures. Composability is one of the most powerful features of decentralized technologies and truly creates an environment where the sum of the parts can be greater than the whole.
Network Value and Incentive Alignment
It is important that as a network we are not bound by borders across any dimension. Hxro’s network token, HXRO, will have multiple functions within the ecosystem including fee payments (and discounts), staking, incentive rewards and onchain governance. HXRO will continue to exist at the banking and settlement layer as an ERC-20 token on the Ethereum blockchain and will also exist in-network as a Solana-based SPL token. Users will be able to freely move HXRO seamlessly between both chains. This allows the Hxro ecosystem to capture the strengths of both blockchains giving our community the most robust onchain experience possible.
As Hxro transitions to a fully decentralized trading network, it will make enhancements to its token economy through new staking, governance and direct incentive programs. Through these programs, network transaction value will accrue back to HXRO token-holders and network participants. These rewards will be funded by network transaction fees, not perpetual inflation, which makes the rewards more valuable as they are driven by network use, not printed.
We will cover this in much more detail soon.
Decentralizing Hxro will be a progressive process that requires immense planning across many technical, legal and operational touchpoints. In coming days and weeks, we will be releasing a series of blog posts that will further detail this and other topics around our planning, roadmap and steps towards accomplishing our goals of sufficient decentralization.
We are pushing forward on this journey with an even greater level of enthusiasm and undying belief in what can be built as we did on the first day we decided to create Hxro more than two and a half years ago.