In today article, we are going to talk about “ What is Hashflow”, “What makes Hashflow unique” and ” How to use Hashflow”
What Is Hashflow?
Hashflow is a protocol that allows for multiple transactional tokens. It is also an unlimited Cross-chain bridge with a focus on fast processing speed, MEV resistance, and extreme gas fee reduction.
What Makes Hashflow Unique?
Difference from other automated market makers, Hashflow is bringing a new flow in trading on DeFi, which includes:
- Users get a great price, and the (low) capital fund allows them to make more money. Prices are always correctly displayed, and executions are always guaranteed, supporting a wide range of assets (tokens).
- MEV – Resistance cryptographic signing for Hashflow front-running operations, limiting security attacks.
- There are no commissions, additional transactions, or gas fees when compared to other popular AMMs.
Besides, Hashflow is backed by the leading Market Making Pool in the market. Users can earn desirable returns by leveraging MM’s valuation algorithms. To avoid unnecessary risks, liquidity pools are always maintained for LPs to receive LP tokens.
How To Use HashFlow On Avalanche?
Get your wallet address and add it to your extension.
Users must have a wallet address in order to manage on the platform. In case you have not had the wallet address yet, you can use Coinbase Wallet and read the installation instruction in this article: How to use Coinbase Wallet for Avalanche users?
Connect your wallet address
- Step 1: Go to Hashflow homepage (https://app.hashflow.com/)
- Step 2: Click Connect on the top right corner and choose Avalanche network then select Coinbase Wallet
1) Swap/Exchange on Hashflow
After you’ve connected a Coinbase Wallet, you’ll need to transfer some Avax to it in order to pay for gas fees.
The next step is selecting the tokens you want to swap/exchange.
Note: You can change the gas fee as well as change the network without a bridge
2) Provide Liquidity Pool
- Step 1: Go to Pools
- Step 2: Choose the pool you want and provide it.
Note: After you provide a liquidity pool, you will receive LP tokens back. For example, when the LP deposits 100 DAI, the Hashflow smart contract will look at the exchange rate of hDAI to DAI (usually less than 1), and mint them the equivalent hDAI. In the future, when the LP wishes to withdraw their DAI, Hashflow smart contracts will accept their hDAI, burn it, and return DAI back equivalent to the exchange rate. If the market maker has made any profits on the DAI, the exchange rate will be higher, allowing the LP to withdraw more than 100 DAI.
What Are The Risk For LP?
An LP’s primary risk is contributing assets to a public pool run by a market maker whose pricing algorithm is unprofitable or insolvent.
If market makers have the ability to price assets off-chain, there is a risk that they will submit a favorable quote to an insider. In other words, they could self-deal, preventing LPs from withdrawing their assets.
Therefore, Hashflow is only working with market makers that have a proven track record in CeFi.
Finally, hope this article has explained and guided you to understand how to distinguish as well as the purpose of using the Hashflow
Good luck trading and see you in the next article!
All information on the article is for reference only, this is not investment advice. Hopefully, the information that Avaxholic has gathered in the article will be useful to you.
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