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Conversation Hashflow: How to bring institutional liquidity to DeFi?

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On October 31, Binance announced that it would launch Hashflow (HFT). Hashflow has been getting a lot of attention from the market, after BlockBeats interviewed them to gain insight into Token allocation and Hashflow's future vision.

On October 31, Binance announced the launch of a native Token HFT for the Launchpool project Hashflow. Hashflow is a next generation decentralized trading platform that aims to bring institutional level liquidity and pricing strategies to DeFi projects, thereby achieving no trading slide-points and completely blocking out MEV-related robo-front trading and sandwich arbitrage. It has been attracting a lot of attention in the market since its inception. Earlier, BlockBeats conducted an in-depth interview with Hashflow, where two of the team's founding members spoke on "How to bring institutional mobility to DeFi?" The upcoming Hashflow Token allocation and Hashflow's future vision are introduced.

The following is a transcript of the conversation

Rhythm BlockBeats: Please introduce yourself first. How did you enter the DeFi field?

Victor Ionescu:I'm Victor, co-founder and CTO of Hashflow, and when I met Varun in 2018, he introduced me to the DeFi concept. I come from a big tech company (Facebook and Airbnb) and have been working in DeFi for 3 years now.

Varun Kumar:I'm Varun, co-founder and CEO of Hashflow. I learned about encryption through a friend I met at HotHub, and that's where I met Victor. Before moving into crypto, I worked in the space industry, building satellites.

Rhythmic BlockBeats: Can you tell me about the Hashflow project?

Varun Kumar:Hashflow is a decentralized trading protocol that connects traders and liquidity providers directly with professional market makers. Traders can trade hot spot assets at the best interest rates without any fees or creating slip points. LPS can make gains without incurring short-term losses.

Since the launch of Open Alpha last August, Hashflow has racked up more than $3 billion in total transactions -- while TVL has done $2.5 million.

BlockBeats: Hashflow has already announced the launch of tokens. Can you introduce the Token economy of Hashflow?

Victor Ionescu:The current plan is to launch the HFT Token sometime in March-April, when it will be distributed to early adopters and contributors.

At the creation stage:

- Total supply of 1 billion HFTS;

- We believe that communities and ecosystems should own most of the agreement, so they will get 56% of the supply;

- This 56% will include community coffers, rewards for early community members and users, and allocations to market makers who helped provide Hashflow's initial liquidity;

- Core team and investors will get 44%.

Linear unlock:

- Core team and investors: 4-year gradual unlocking period and one-year lock-up period;

- Community reward: lock-free warehouse;

- Designated market maker: HFT loan; No stepwise unlocking period or lock-up;

Inflation:

- After 4 years, the HFT will issue 5% additional tokens annually, and the new tokens will go into the community Treasury for future incentive schemes;

- The core team and investors will be permanently diluted;

- The goal is to ensure that early contributors are properly rewarded;

- Communities collectively decide how to allocate funds.

Incentive Plan:

- Through our trading and liquidity reward program, traders and LPS can passively earn HFT by trading and storing liquidity;

-Market makers earn HFT by depositing LP yields and driving volume

Rhythmic BlockBeats: How do Token holders get Revenue?

Varun Kumar:The HFT is a governance Token that stakeholders will use to make public and vote on key issues related to the future trajectory of the Hashflow protocol - so it is not used to generate profits.

Rhythm BlockBeats: When Hashflow announced the issuance of Governance Token HFT, it seems that the community was not happy with the allocation ratio to NFTS. Some NFTS received a much larger percentage of airdrops than others. How was the airdrop ratio designed?

Varun Kumar:Just to be clear, when we decided on the reward allocation at the initial announcement, our goal was to appropriately reward people who made a large number of transactions through Hashflow multiple times. When we analyze the trading data further, we find that there are a large number of traders who do not fall into this category.

While volume is not a perfect indicator, it was the most important indicator of Hashflow growth at the time because it helped prove the capital efficiency argument.

That being said, we still want to make sure everyone feels the rewards of the valuable support they've provided since Hashflow's launch -- and that transaction fees like gas fees don't come out of pocket.

Therefore, we decided to move 1% from the token allocation of the Hashflow core team to increase the HFT value of two NFTS -- Hashbot poster #1 and #2. We want to show how important each member of the #hashgang is to us.

After we completed this update, we were delighted with the positive response we received from the community!

Rhythmic BlockBeats: When is the Token expected to go online? It was always January. Why the delay?

Victor Ionescu:The current plan is to launch the HFT around March, probably at the end of the month. While the original plan was for January, the team wanted to proceed cautiously and ensure a seamless start. There are certain steps we need to take to ensure safety, good design, and a robust ecosystem. As soon as we are ready, we will launch the HFT.

Rhythmic BlockBeats: Why bring off-chain market makers into on-chain DeFi? Is it simply because the off-chain liquidity is better?

Victor Ionescu:By enabling market makers to price assets off-chain and provide quotes only on-chain, Hashflow achieves unprecedented capital efficiency and flexibility in market-making strategies.

This means we can offer better prices to Hashflow users and provide a more secure trading experience without the risk of slippage, sandwich attacks, and other MEV vulnerabilities.

Rhythmic BlockBeats: Does Hashflow currently have an institutional partner?

Varun Kumar:Yes, we have partnered with some of the most experienced and established market makers in the space - including GSR, LedgerPrime, Wintermute, Altonomy and Falcon X.

Rhythmic BlockBeats: Hashflow is currently available on Polygon and BSC. Are there any other public links available?

Victor Ionescu:Yes, we just launched last week on Arbitrum, and this week we soft-launched again on Avalanche. We are working to integrate and support more chains and eventually make it easy for anyone to trade any Token on any chain.

Rhythmic BlockBeats: What are the plans for Hashflow in the near future?

Varun Kumar:We plan to launch cross-chain transactions and HFT(our governance Token) in the coming months.