Topic: Avalanche Ecosystem Cross-Chain DEX Hurricane Swap (HCT) Market Analysis (Read 14 times)

HurricaneSwap is an Avalanche-based DEX that uses LP for multi-asset trading across chains. It features the unique Roke protocol, HurricaneStation and Hurricane Alliance, providing users with a more efficient and stable liquidity solution by supporting transactions on dozens of heterogeneous blockchains, such as Bitcoin, Ethereum, BSC, and HECO.

LP Cross-chain
HurricaneSwap’s LP cross-chain is a cross-chain mechanism that takes the liquidity of the original chain through collateral minting and generates cross-chain liquidity of the target asset directly on this chain.

E.g.:
Users can create liquidity of CAKE and USDT on BSC, by first collateralizing them through HurricaneStation and then crossing to Avalanche via Roke Protocol to mint as a liquidity pair aLP of aCAKE and aUSDT. Users can then 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 arbitrage between the cross-chain aToken and the native Token to even out the price difference. At this point, the price of aCAKE in the possession of users and the price of CAKE on BSC will converge.
Since the LP on the native chain is directly minted cross-chain, Avalanche users can freely trade tokens on other chains on HurricaneSwap. As it is collateralized to become aLP after crossing the chain, only HurricaneAlliance has the authority to cross the chain with a single token. Consequently, if hackers increase a cross-chain asset through an attack, they will not be able to cash out and escape.

HurricaneAlliance
Crossing chains of assets, liquidity changes and other factors will lead to price differences between Swap trading pairs. This price difference will be eliminated by the validator alliance to provide the best possible trading experience for users, from which the validator alliance can also earn arbitrage income. The validator alliance will also review the liquidity cross-chain for compliance to avoid malicious behavior such as fake recharge attacks on cross-chain assets.
One is required to stake HCT if they wish to take part in the validator alliance. Validator alliance nodes can enjoy HCT rewards and gains from price arbitrage. 10% of the total HCT supply (200 million HCT tokens) will be used to incentivize the validator alliance. This portion of HCT will be released linearly after the official launch of HurricaneSwap, with 300,000 HCT released every day until the completion of its release.

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