Hyphen 2.0: staking, rewards and lower fees

June 3, 2022
4
min read
Since it’s initial release, over 17,000 new users have sent cross-chain transfers faster and cheaper than ever before with Hyphen. With over $110M in total volume and a TVL of only $8M, Hyphen is already becoming the most capital efficient bridge available to users. And with average transfer times of less than a minute, it’s also the fastest!

To continue scaling, we’ve been quietly building a new version of Hyphen and after much anticipation we are officially ready to share it with our community.

We’re calling it Hyphen 2.0, but you can just think of it as your new go-to bridge. Let’s dig in to see what makes it so great!

LP Staking: become a liquidity provider on Hyphen for high APY

Perhaps one of the most exciting additions to Hyphen 2.0, is the ability for anyone to add up to $10,000 USD in liquidity and support cross-chain transfers. This is made possible with our new user-interface, designed to be incredibly user-friendly and intuitive. Through the new interface, liquidity providers will be able to earn a portion of Hyphen fees + $BICO rewards.

Stake with Hyphen 2.0 to earn $BICO

In addition to staking NFT’s as shown above, becoming a liquidity provider is equally straightforward. Getting started only takes a few minutes, and the pools interface allows you to easily view and manage positions while providing up to $10,000 in liquidity to your favourite chains, with a $10 million cap on the pools. Did we mention the APY is high? Take a look for yourself!

Earn fees as an LP

Dynamic Fees: supporting the most capital efficient bridge in the world

We recently wrote an article explaining why capital efficiency is the most accurate measure of success for a bridge. In case you missed it, higher capital efficiency equates to added volume at a lower TVL, which allows additional chains & tokens to be supported for less by optimizing how and where the liquidity is used. Namely, where it is actually needed.

Increasing capital efficiency begins with ensuring liquidity pools are mirrored effectively (see image below) between source and destination chains under a decentralized model.

Mirrored liquidity pools

Our solution is to introduce a dynamic fee model, which as of today will allow liquidity pools to be balanced through incentivizing transfers in favour of source chains with higher liquidity to those with less. The result, is a fee structure determined by the available liquidity in both the source and destination chain.

Reduced costs with dynamic fees

Thanks to dynamic fees, Hyphen users can end up paying much lower cross-chain fees, in addition to opening up arbitrage opportunities!

Arbitrage Opportunities: earn rewards with open-source bots

Another exciting addition to Hyphen is our open-source rebalancing bot. In this new model, we’ll publish open source bots to be ran by users, that are capable of rebalancing Hyphen pools and collecting rewards for doing so.

The best part?

A bot can be executed by absolutely anyone, with only one requirement of providing the appropriate pool assets for rebalancing.

In the absence of a bot, Hyphen users will be able to play the role of arbitragers and earn rewards simply by moving their funds from one chain to another.

Chain Scalability: increased chain and asset support

The impact of dynamic fees and liquidity providers cannot be understated, both in terms of the short-term value added as well as the larger goal of becoming a decentralized protocol. Doing so grants us the freedom and support to drastically scale Hyphen, by adding new chains and assets at a rate that simply wasn’t possible, until now. In the near future, users can expect to see support for chains like BSC, Arbitrum and Fantom with more being added every month.

Conclusion

Hyphen 2.0 marks a crucial milestone in our journey of creating a fully decentralized protocol. Through the use of dynamic fees, public liquidity and eventually our relayer protocol, we can achieve higher interoperability across the multi-chain landscape and fulfill our vision of becoming the most efficient and user-friendly bridge ever made, all while supporting our community along the way. It’s a a big goal, but look how far we’ve come already.

Thank you for reading and don’t forget to check out Hyphen for yourself, LP spots are limited so don’t wait!


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