Hxro Network: Solana's Decentralized Derivatives and Betting Powerhouse

TL;DR

Hxro Network is a decentralized derivatives trading and betting platform built on Solana. It aims to be the underlying infrastructure layer powering on-chain derivatives and betting markets across the Solana ecosystem and beyond.

Hxro consists of two core protocols:

1. Dexterity Protocol - a decentralized Central Limit Order Book (CLOB) for trading perpetual and expiry futures, options and combos.
2. Parimutuel Protocol - a decentralized betting markets protocol for Solana apps.

Any app can plug into Hxro's shared liquidity pools and infrastructure to offer their users derivatives trading and betting capabilities. The HXRO token is used for staking, governance, fee discounts and other utilities within the Hxro ecosystem.

What is Hxro Network?

Hxro Network is a decentralized exchange (DEX) platform built on the Solana blockchain, aiming to create the most liquid and robust derivatives and betting markets for Solana-based assets.

It provides the underlying exchange, risk management and settlement infrastructure that allow any Solana application to offer advanced trading and betting capabilities to their users. This includes crypto exchanges, DeFi apps, NFT marketplaces, metaverse games, prediction markets and more.

By plugging into Hxro's shared liquidity and infrastructure, partner apps can offer their users access to a wide range of markets, without having to bootstrap liquidity or build complex trading systems from scratch. All apps and market participants share liquidity regardless of which venue they use to access Hxro.

Hxro consists of two foundational protocols:

1. Dexterity Protocol - Decentralized derivatives trading
2. Parimutuel Protocol - Decentralized betting markets

Let's dive into each of these.

Dexterity Protocol

Dexterity Protocol is Hxro's decentralized Central Limit Order Book (CLOB) for derivatives trading. It enables liquid markets for:

• Perpetual futures
• Dated expiry futures
• Vanilla options
• Combo markets (spreads etc)

Dexterity uses a fully on-chain matching model, meaning all trades are settled instantly and securely on Solana without any off-chain components. This provides a non-custodial trading experience resistant to front-running and manipulation.

The protocol is powered by Spandex, Hxro's custom-built risk engine. Spandex uses portfolio margin rather than position-based margin. This means traders holding multiple positions can benefit from offsets between correlated positions, making capital usage more efficient.

Dexterity is designed to be fully composable and modular. Custom market creation is permissionless, allowing anyone to launch new markets based on arbitrary on-chain events and data.

Parimutuel Protocol

Parimutuel Protocol is Hxro's decentralized betting markets protocol. It allows any app to create custom parimutuel betting markets based on real-world events and on-chain data.

Parimutuel betting uses a shared liquidity pool model where all bets are aggregated and winnings are shared among winners in proportion to their stake. It's a proven model used in traditional betting markets like horse racing.

With Hxro's Parimutuel Protocol, the betting process is fully automated and governed by smart contracts. Apps can create custom markets based on things like:

• Sports events
• Political elections
• Gaming tournaments
• On-chain DAO votes
• DeFi rates and metrics

Hxro uses secure oracles like Pyth Network to determine real-world outcomes and settle bets accordingly. Payouts are distributed instantly on Solana once event results are finalized on-chain.

The HXRO Token

HXRO is the utility and governance token underpinning the Hxro Network ecosystem.

The HXRO token has several core utilities:

• Staking - Users can stake HXRO tokens to secure the network and earn a share of protocol revenues (trading fees).
• Governance - HXRO token holders can vote on protocol upgrades, new market listings, parameter changes and more. Voting power is proportional to HXRO stake.
• Fee Discounts - Users who pay trading fees in HXRO receive discounts compared to using other settlement tokens.
• Liquidity Mining - Providing liquidity to Hxro earns additional HXRO rewards on top of regular LP fees.

100% of value generated by the Hxro Network is returned to HXRO stakers and ecosystem participants. Stakers receive 50% of all trading fees, with the remainder allocated to the Hxro Treasury (25%) and HXRO token buybacks (25%).

The initial HXRO token supply is 1 billion, distributed as follows:

• Community & Ecosystem - 55%
• Team & Advisors - 18%
• Strategic Sale - 12.7%
• Protocol Treasury - 12%
• Public Sale - 2.3%

What Makes Hxro Unique?

Hxro Network has several unique attributes that differentiate it from other decentralized derivatives platforms:

• Spandex Risk Engine - Hxro's custom-built portfolio margin system is the first of its kind on Solana. It allows for more capital efficient trading.

• Composability - Hxro is designed to be the infrastructure layer for derivatives and betting across all of Solana and beyond. Any app can easily plug in and leverage shared liquidity.

• Cross-App Liquidity - All Hxro-powered apps contribute to and share the same liquidity pools, leading to better pricing and lower slippage for traders.

• Hybrid Liquidity - Hxro uses a hybrid liquidity model combining an automated market maker (AMM) with orderbook-based liquidity. This provides the best of both worlds.

• Permissionless Markets - Anyone can create custom derivatives or betting markets based on arbitrary events and data.

Hxro's ultimate vision is to be the underlying platform enabling the next wave of financial innovation on Solana and beyond. By abstracting away the complexities of derivatives infrastructure, Hxro drastically lowers the barriers to entry for new apps and use cases.

How to Use Hxro Network

There are several ways for users to interact with Hxro Network:

Trading Derivatives

Users can trade perpetual and expiry futures, options and combos on the Hxro DEX or any app leveraging Dexterity Protocol. Simply connect a Solana wallet, deposit collateral and start trading.

Hxro uses a non-custodial model where users always maintain full control of their funds. Trades are settled instantly on Solana for maximum security.

Providing Liquidity

Users can earn fees by providing liquidity to Hxro Network. This involves depositing assets into shared liquidity pools used to facilitate trading.

Liquidity providers (LPs) earn a share of trading fees generated by the pools they supply to. They can amplify their returns by staking LP tokens to receive additional HXRO token rewards.

Betting on Events

With Hxro's Parimutuel Protocol, users can bet on the outcome of real-world events, on-chain activities, gaming tournaments and more.

Simply choose a betting market, select an outcome and enter your stake. If your prediction is correct, you'll receive a share of the betting pool proportional to your contribution.

Staking HXRO

HXRO token holders can stake their tokens to earn protocol revenue, participate in governance and receive other benefits.

The more HXRO staked, the greater the share of protocol fees received. Staked HXRO also grants voting rights to participate in Hxro governance.

To stake, users lock their HXRO tokens in the protocol staking contract. Staking rewards accrue in real-time and can be claimed at any point.

The Hxro Network Team

Hxro Network is built by a team of veteran traders, developers and technologists with deep expertise in both traditional and decentralized finance.

The project is led by co-founders Dan Gunsberg and Rob Levy:

• Dan Gunsberg is an experienced trader and market maker who previously built trading systems and algorithms for equities, futures and options markets.

• Rob Levy comes from a software engineering background and has worked at the intersection of finance and blockchain technology for several years.

Other key team members include:

• Thomas Schmid (Head of Engineering) - Former software engineer at Microsoft and Palantir. Expert in high-performance trading systems.

• Michael Feng (Head of Business Development) - Previously worked in derivatives sales at major investment banks including Barclays and Nomura.

• Will Harborne (Strategy Lead) - Founder of Solana-based DeFi protocol DeversiFi. Early pioneer in decentralized derivatives.

The Hxro team is advised by industry leaders in market structure, derivatives, market making and DeFi, including Dave Olsen (ex-President of Jump Trading).

Hxro Network Roadmap

Hxro Network is currently live on Solana mainnet with basic derivatives and betting functionality. The protocol is undergoing a phased rollout with additional features and assets to be added over time.

Key milestones on the roadmap include:

• Q3 2024

  • Spot margined perpetual swaps
  • SOL and BTC dated futures
  • HXRO staking and governance

• Q4 2024

  • Portfolio margin for futures
  • Vanilla options (BTC and SOL)
  • Strategic asset listings

• Q1 2025

  • Exotic options and structured products
  • Parimutuel betting on major sports events
  • Expanded cross-chain assets (ETH, FTT etc)

Over the longer term, Hxro aims to be the dominant derivatives and betting infrastructure across Solana and other major blockchains. This will involve ongoing development to expand supported assets, market types, features and cross-chain integrations.

Security and Audits

Security of user funds is the highest priority for Hxro Network. The protocol has been audited by several leading blockchain security firms:

• Kudelski Security - Full protocol audit of Dexterity and Parimutuel smart contracts, Spandex risk engine and supporting infrastructure. No critical issues found.

• Neodyme - Comprehensive audit of HXRO token and governance contracts. Identified issues fully patched.

• OtterSec - Ongoing audit and monitoring of Hxro smart contracts and frontends.

Hxro Network also operates a bug bounty program on Immunefi, offering rewards up to $500,000 for discovering and responsibly disclosing vulnerabilities.

In the event of any potential discrepancies or loss of funds, Hxro maintains a protocol insurance fund that can be used to compensate affected users. The insurance fund is capitalized by a portion of trading fees.