MEXC Research: Avalanche Protocol’s Ecosystem Cross-chain DEX Project, HurricaneSwap

HurricaneSwap is based on Avalanche’s first multi-chain asset trading DEX using LP cross-chain. With its unique Roke protocol, HurricaneStation and Hurricane Alliance, HurricaneSwap can support the transaction of dozens of assets on heterogeneous blockchains, such as Bitcoin, Ethereum, BSC and HECO, providing users with more efficient and stable liquidity solutions.

LP Cross-chain

The LP cross-chain of HurricaneSwap is a cross-chain mechanism that directly generates the cross-chain liquidity of target assets in the chain by casting the liquidity of the original chain through mortgage.

For example：

1. Users can create the liquidity of CAKE and USDT on BSC, by collateralizing them first through the HurricaneStation, and then cross to Avalanche through the Roke Protocol to form the liquidity pair ALP of aCAKE and USDT. Users can trade aCAKE on Avalanche.

At this time, if the price of CAKE on the BSC chain fluctuates, the nodes in the HurricaneAlliance will carry out trading arbitrage between the cross-chain aToken and the native token to level the price difference. At this time, the price of the user’s aCAKE and CAKE of BSC tend to be the same.

Since the LP on the original chain is minted cross-chain directly, Avalanche users can freely trade the tokens on other chains on HurricaneSwap. Because it is used as collateral for aLP after crossing the chain, only HurricaneAlliance has the authority of a single cryptocurrency cross-chain. Therefore, if the hacker issues an additional cross-chain asset through an attack, he will not be able to cash out and escape.

HurricaneAlliance

As the asset crosses the chain and liquidity changes, it will lead to the price difference of the Swap trading pair, this partial price difference will be eliminated by HurricaneAlliance to provide users with a better trading experience as far as possible. HurricaneAlliance can also obtain arbitrage income. The HurricaneAlliance will also check whether the cross-chain liquidity meets the requirements to avoid malicious behaviors such as cross-chain assets and false recharging attacks and other malicious acts.

To become a part of HurricaneAlliance, users need to stake HCT. The HurricaneAlliance node can enjoy the benefits from HCT rewards and price arbitrage. 10% of the total supply of HCTs (200 million HCT tokens) will be used to incentivize HurricaneAlliance. This part of HCT will be released linearly after the official launch of HurricaneSwap, and 300,000 HCT will be released every day until the release is completed.

Product Logic

Set up/Add liquidity

Draw Liquidity

Eliminate price differences

Roke Protocol (LP-Bridge): The underlying protocol of the LP cross-chain bridge can complete the exchange between the collateralized LP on the original chain and the exchange between aToken formed by this chain.

HurricaneStation: Completes the original LP collateral site on each target chain.

HurricaneAlliance: The HurricaneAlliance can collateralize LP and eliminate the price difference between the original chain and its own chain through the exchange with aToken.

Financial situation:

In May 2021, HurricaneSwap has obtained over a million U.S. Dollar seed financing round led by the industrial foundations, AVATAR Venture and LD Capital led by the Avalanche Protocol.

As of July 2021, HurricaneSwap’s private sale investing institutions include: MXC Labs, Redline Capital, Limestone Capital, Kernel Capital.

Strategic cooperation institutions include: Avalanche, CoinMarketCap, Chainlink

Tokenomics

Platform token: HCT

Total supply: 2 billion tokens

Liquidity mining: 60%, 1.2 billion tokens, 1 million tokens will be released after the official launch.

Market and ecosystem incentives: 4%, 80 million tokens, no lock-up, used for market brand building.

HurricaneAlliance: 10%, 200 million tokens, 300,000 tokens released per day after Roke Protocol’s launch.

Team Funds: 10% billion tokens, locked up for 6 months after launch, released linearly by separating into 12 months.

The first round of private sale: 11%, 160 million tokens, released in 12 months after a 3-month lock-up period.

The second round of private sale: 4%, 80 million tokens, linear release by separating into 12 months after a one-month lock-up period.

Public Sale: 1%, 20 million tokens, no lock-up, the estimation value is 60million USDT.

Practical value analysis：

Practical value：

Trading fee

Liquidity mining

Participate as a validator in the HurricaneAlliance/Nodes to get incentive

Participate in the future community and governance

Existing risks：

Partial unlocking and cash-out of fundraisers

Unlock and cash-out by the team

Partial cash-out of liquidity mining