Place/Date: - December 12th, 2021 at 11:19 am UTC · 6 min read
A butterfly fluttering its wings in the rainforests of South America can cause a hurricane in Texas, USA, two weeks later. – The Butterfly Effect
With the announcement of launching HurricaneSwap V2, the emerging cross-chain liquidity concept has finally been applied. Comparing HurricaneSwap V2 to the first flutter of a butterfly, what kind of hurricane will it cause in the DeFi field?
Decentralized exchanges (DEX) have inherent advantages over centralized exchanges (CEX): the security of assets, the convenience of long-tail assets, and the fairness of trading. But it is undeniable that the product experience of CEX is still much better than that of DEX: faster transaction speeds, lower fees, more assets, and richer features, which are the most basic for CEXs but so hard for DEXs to achieve.
Many leading DEXs are exploring ways to improve, such as dYdX’s exploration of decentralization of perpetual contracts trading, UniSwap V3’s exploration of liquidity, and so on. At present, many public chains have various high-quality projects, but when you trade these project tokens on DEXs, you must have accounts and funds on each chain, just like when you trade exclusive hot tokens in different CEXs. It’s terrible, but cross-chain DEX is born to fix it.
HurricaneSwap chose to take the first step from cross-chain DEX with this goal.
HurricaneSwap’s V2 will bring us an extraordinary cross-chain trading experience, and many people may not understand it before it goes online. Users do not need to transfer assets between different chains. Instead, HurricaneStation and Roke Protocol will take over this job and complete minting the original liquidity to Avalanche to form a synthetic asset so that users can trade assets of multi-chains with only one account on Avalanche.
This is more similar to the trading experience of CEX where users no longer need to do complex multi-chain switches & transfers and other operations.
You will be able to trade various multi-chain tokens supported by HurricaneSwap with your wallet on Avalanche, such as CAKE on BSC and more later. There are new liquidity mining options for users of other chains, and multi-chain interoperability significantly promotes the flow of assets.
In a word, in HurricaneSwap, no matter which chain of assets you trade, it will take the same time, the same gas, and the same short router as trading the assets of the original chain, which is not possible with other cross-chain bridges or cross-chain aggregators.
All innovations are challenging. For HurricaneSwap, even after the launch of V2 with cross-chain features, there’s still a long way to realize a CEX-level trading experience with more chains and assets.
HurricaneSwap’s team stated that they are not worried about this process. This V2 has already constructed the substrate firmly enough, and the construction of the upper layer will be carried out in an orderly manner.
From the recent news, we can see that HurricaneSwap has been more than careful with this V2 update. On the one hand, it has been developing steadily under pressure from the community and the market. On the other hand, it has hired three auditing firms to audit, which is rare in the DeFi industry.
These three auditing firms have abundant experience – PeckShield is one of the auditors of Avalanche; HashEx is the auditor of TraderJoe, the largest TVL project on Avalanche; and SlowMist is the auditor of cross-chain exchange O3, which helped O3 retrieve the assets as soon as possible after the hacking incident.
Original development and rigorous auditing are very time-consuming and costly, which are a bit “stupid’ compared to the numerous fork projects in the “bull market”. But if you look at the frequent DeFi security incidents, especially in the cross-chain sector, this “stupidity” is very worthwhile!
Although more tradable assets cannot be done overnight, it is foreseeable that HurricaneSwap will gradually achieve a CEX-level decentralized trading experience for all chains and assets based on the cross-chain synthetic asset trading mechanism.
More chains and access to increased assets bring more than just transactions. Looking back on the past two months since its launch, HurricaneSwap has continuously made efforts in product innovation and ecological cooperation. In addition to trading assets of multiple chains in one account smoothly, it also needs a wealth of derivative products and features to reach a CEX-level trading experience.
Judging from the roadmap of HurricaneSwap, it will be much more than just a DEX. For the Avalanche ecosystem, the developed HurricaneSwap will assume the responsibility of ecological interoperability. The Avalanche Bridge (AB) builds a channel for users to transfer assets to and from Ethereum, and HurricaneSwap can bring a wider variety of assets to the Avalanche ecosystem.
With the introduction of multi-chain assets, Avalanche users can execute more comprehensive trading strategies on Avalanche. For example, they can hedge their risks quickly and effectively when the Avalanche ecosystem is trending lower while other ecosystems are rising. It can also provide richer asset targets for other derivatives in the ecosystem.
With the support of multi-chain assets, other features of HurricaneSwap such as the DAO, cross-chain IDO, and the ecological cooperations on Avalanche such as Valut, Leverage will help HurricaneSwap be a DeFi hub with full DeFi features.
It seems to be a very vivid analogy to compare HurricaneSwap’s launch of V2 to the “butterfly effect”. Currently, no product can realize the function of multi-chain asset transactions with one account on a specific chain. The emergence of the revolutionary HurricaneSwap may have the opportunity to return the transaction efficiency and asset richness of DEXs to users. With the gradual completion of its features, HurricaneSwap is expected to create a CEX-level product experience.
Innovation is undoubtedly difficult. After a long development period, HurricaneSwap V2, flanked by three audits, has officially landed, fluttering its wings for the first time.
The runway has been built, will the takeoff be far away?