CEG Spotlight #1: Hera Finance
Hera Finance is the key liquidity aggregator for Andromeda Network, offering a wide variety of tokens and some of the best routes for any of their offered token pairs. Hera was also the very 1st project to register for our recently launched CEG program.
What exactly is a Liquidity Aggregator?
A dApp that searches for the best prices among different exchanges, in order to find the best match to execute a certain trade. Basically, Hera finds liquidity for you, instead of letting you incur massive slippage. As you may also expect, the best priced trade is not always on one DEX, and may involve a combination of trades across many DEXes.
Here’s a real example of the cost advantages:
Some of its most popular features include, but are not limited, to:
- Smart Routing
- Trade Splitting
- Swap Fees Distribution
- Multitoken aggregation
- Governance (DAO) — Soon
Let’s look into each of these:
Smart Routing: Automatically finding the best available price across multiple exchanges to optimize the outcome of trading any pairs. Hera directly connects all DEX markets and AMM pools together no matter the provider and will find all direct and 2-hop to 5-hop routes between any two tokens on Metis Network. As of right now, there’s a maximum 5-hop route.
Sometimes, the best priced routes are not direct markets. Therefore, Hera looks for the best price by routing through an intermediary token. This can sometimes achieve better prices, due to price inefficiencies and/or volatility in the various markets that Hera.Finance routes through.
Trade Splitting: Dividing a large order into a series of smaller ones. This allows securities to be traded, whether they’re bought or sold, with ease and can also make the order eligible for more rapid trade executions. When Trade-Splitting, the % distribution of the trades is dynamically determined to give you the best price. This feature is very helpful, specially for large size trades and trades with tokens where there is shallow liquidity spread out across a number of DEXes.
Swap Fees Distribution: Hera earns income from every swap, and these fees don’t go directly to the team. These fees will also contribute to the growth and development of the project and ecosystem.. It will also be sent as a reward to people who use Hera’s app and will provide incentives to the stake pool.
Proceeds from transaction fees will be distributed as follows:
- Ecosystem Funds (Treasury) (40%)
- Development & Marketing (20%)
- Buy $HERA & Add LP (15%)
- Rewards Pool (15%)
- Leaderboard (10%)
Multitoken aggregation: Each token trade requires a series of transactions, therefore, Hera’s goal is to enable you to trade faster and with lower fees. For example, if you have A-B-C-D tokens and you want to swap them all to METIS. Hera Finance simplifies this by requesting an approval for all tokens and swap them all in a single transaction. This way, the users are getting rid of wasted time and high fees.
Governance (DAO) — Soon: Governance is restricted to stakers, and these stakers will have a say on topics including:
- Protocol upgrades
- Alternative network executions
- Adding/removing AMM pools
- Acceptance/rejection of the planned features
- Burn/Inflation suggestions
Protocol security is unarguably one of the biggest/most important points when looking at a project. In the case of Hera, it doesn’t have one audit, but instead 2.
Hera Finance made sure to audit their Aggregator, and Fee organizer: both by Armour Labs.
Fee Organizer: http://odex.vip/?sign=8eba4e3e16e6e5a1fd8a7147c829d69e
As you can see, all goals for the Q1 Roadmap were delivered as expected, including:
- Branding and assets creation
- Live: Website and Doc’s
- Establishment of the early community
- Smart contracts and multi-hops ready
- Dex aggregator on testnet
- Seed & private sale rounds for $HERA
- Hera Token public sale
- Hera Token Launch
For Q3, Hera prioritized the development of Hera v2, having already tested it as well. For Hera v2 we’ll see improvement such as:
- Gas optimization
- Multichain compatibility
- Hera Guard v2
- New AI powered pathfinder algorithm
- New trade splitting method
- SDK release (potentially for Q2)
Here’s a sneak peek of the new website
Hera aims to make developing a good swap interface or program as seamless and magical as possible. How, though?
- Removing key barriers to providing a good UX, including having clear instructions for issues like ATAs and open orders.
- Providing various methods of accessing the swap, so all apps, dapps, and programs can use it seamlessly
- Providing updated liquidity sources, token lists, and possible UX improvements as soon as possible.
Contribution to the Ecosystem
• Hera makes inquiries in more than one liquidity provider and sets up trade splitting to provide balance. It provides a balancer effect on different prices on different dex platforms and averages the price. Besides, it serves as a blocking factor for many flash swap bots.
• Takes advantage of time, transaction fees and the number of transactions that will tire the network.
• Helping prevent unstable movements, as well as the “gap” problem in large transactions. Hera does not experience large shifts in the prices of input/output tokens, which is an important element for the ecosystem.