Conversation with Hashflow: How to Bring Institutional Liquidity into DeFi?

On October 31st, Binance announced that it will list the native Token HFT of the Launchpool project Hashflow. Hashflow is a next-generation decentralized trading platform that aims to bring institutional-grade liquidity and pricing strategies to DeFi projects, so as to achieve no transaction slippage and completely block MEV-related robotic front-running and sandwich arbitrage. It has always been highly concerned by the market. Previously, BlockBeats conducted an in-depth interview with Hashflow. The two founding members of the team introduced the upcoming Hashflow Token distribution and the future vision of Hashflow with the theme of “How to bring institutional liquidity to DeFi?”.

The following is an arrangement of the text version of this online conversation

Rhythm BlockBeats: Please introduce yourself first, how did you enter the DeFi field?

Victor Ionescu: I’m Victor, co-founder and CTO of Hashflow, and when I met Varun in 2018, he introduced me to the concept of DeFi. I come from a big tech company (Facebook and Airbnb) and have been working in the DeFi space for 3 years now.

Varun Kumar: I’m Varun, the co-founder and CEO of Hashflow. I learned about cryptography through a friend I met at HotHub, where I met Victor. Before getting into crypto, I worked in the aerospace industry, building satellites.

Rhythm BlockBeats: Can you introduce the Hashflow project?

Varun Kumar: Hashflow is a decentralized trading protocol that connects traders and liquidity providers directly with professional market makers. Traders can trade popular spot assets at the best rates without any fees or slippage. LPs can make gains without suffering short-term losses.

Since the launch of Open Alpha last August, Hashflow’s total transaction volume has exceeded $3 billion — while TVL’s transaction volume is $2.5 million.

Rhythm BlockBeats: Hashflow has announced the launch of Token before, can you introduce Hashflow’s Token economy?

Victor Ionescu: The current plan is to launch the HFT Token sometime in March-April, when it will be distributed to early users and contributors.

During the creation stage:

-Total supply of 1 billion HFT;

– We think the community and ecosystem should own the majority of the protocol, so they will get 56% of the supply;

– This 56% will include the community treasury, rewards for early community members and users, and the distribution of market makers who help provide Hashflow’s initial liquidity;

– The core team and investors will receive 44%.

Linear Unlock:

-Core team and investors: 4-year gradual unlocking period and one-year lock-up period;

– Community reward: no lock-up;

– Designated market maker: HFT loan; no gradual unlock period or lock-up;


– After 4 years, HFT will issue an additional 5% Token every year, and the new Token will enter the community treasury for future incentive plans;

– The distribution of the core team and investors will be diluted forever;

– The goal is to ensure that early contributors are properly rewarded;

– The community collectively decides how to allocate funds.

Incentive Program:

– Through our trading and liquidity reward program, traders and LPs can passively earn HFT by trading and storing liquidity;

– Market makers earn HFT by depositing LP yields and driving trading volume

Rhythm BlockBeats: How can token holders use Token to gain benefits?

Varun Kumar: HFT is a governance token that stakeholders will use to publicize and vote on key issues related to the future trajectory of the Hashflow protocol – so it is not used to generate profits.

Rhythm BlockBeats: When Hashflow announced the issuance of governance Token HFT, it seemed that the community was not satisfied with the distribution ratio of NFT holders. Some NFTs received a much larger airdrop ratio than other NFTs. How is the airdrop ratio designed?

Varun Kumar: Just to clarify, when we decided on the reward distribution when we initially announced it, our goal was to appropriately reward those who have made a lot of transactions through Hashflow multiple times. When we further analyzed the trading data, we found that there are a large number of traders who do not fall into this category.

While not a perfect metric, transaction volume was the most important metric for Hashflow’s growth at the time, as it helped prove the capital efficiency argument.

That being said, we still want to make sure everyone feels the rewards of their valuable support since Hashflow launched – and transaction fees like gas fees don’t have to be out of pocket.

Therefore, we decided to remove 1% from the token allocation of the Hashflow core team to increase the high-frequency trading value of two NFTs – Hashbot posters #1 and #2. We want to show how much every member of #hashgang means to us.

We are delighted to receive the positive response from the community after we completed this update!

Rhythm BlockBeats: When is Token expected to be launched? It has been said that it is January, why is it delayed?

Victor Ionescu: The current plan is to launch HFT around March, probably at the end of March. While the original plan was in January, the team wanted to tread carefully and ensure a seamless launch. We need to take certain steps to ensure security, good design, and a solid ecosystem. We’ll roll out HFT whenever we’re ready.

Rhythm BlockBeats: Why choose to introduce off-chain market makers into on-chain DeFi? Is it simply because off-chain liquidity is better?

Victor Ionescu: By enabling market makers to price assets off-chain and only provide quotes on-chain, Hashflow enables unprecedented capital efficiency and flexibility in market making strategies.

This means we can offer Hashflow users better prices and a more secure trading experience without the risk of slippage, sandwich attacks, and other MEV vulnerabilities.

Rhythm BlockBeats: Does Hashflow currently have institutional partners?

Varun Kumar: Yes, we have partnered with some of the most experienced and established market makers in the space – including GSR, LedgerPrime, Wintermute, Altonomy and Falcon X.

Rhythm BlockBeats: At present, Hashflow has listed Polygon and BSC. Are there any other public chain listing arrangements?

Victor Ionescu: Yes, we just released on Arbitrum last week, and this week we have a soft release on Avalanche. We are working hard to integrate and support more chains, eventually making it easy for everyone to trade any token on any chain.

Rhythm BlockBeats: What are the plans for Hashflow in the near future?

Varun Kumar: We plan to launch cross-chain transactions and HFT (our governance token) in the coming months.

The above is the entire content of this conversation.

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