Announcing Hydrex Surge; the next wave of enhancements that evolve Hydrex to give users more choice, accommodate larger capital allocators, and become a more competitive MetaDEX.

We’ve listened intently to the Hydrex ecosystem; stakers, holders, funds, and more. Hydrex’s next wave of improvements is a direct result of understanding that feedback and putting it into practice, arriving at a better end result for the Base ecosystem.

Hydrex’s Surge combines several major enhancements across our protocol, tokenomic alignment, and product suite. Namely, the following:

At present moment, Hydrex gauges require staking ALM or Classic-style LP tokens to receive emissions. While convenient, this approach excludes LPs who want to manage their own capital through manual concentrated liquidity positions.

Hydrex will be opening the floodgates to larger capital providers & diversifying user options by enabling manual position incentive streaming. This will reward Hydrex LPs based on in-range liquidity positions, instead of requiring the use of an ALM.

Additionally, Hydrex is proud to announce that we are deepening our partnership with Algebra, resulting in 0% external LP fees across all Hydrex LPs, putting us on par with the most competitive DEXs on Base. The Hydrex treasury will subsidize licensing costs to ensure our users get 100% of the fees generated from any Hydrex LP.

The net effects:

• Manual concentrated liquidity positions will be eligible for Hydrex emissions rewards, estimated early December.

• As a result all trading fees, staked or unstaked, will go to Hydrex Account holders.

• Hydrex will be able to accommodate larger capital providers & LP funds.

• ALMs become a quality of life improvement, instead of a requirement.

Hydrex’s emissions serve several critical functions; incentivizing liquidity providers, distributing voting power, and creating long-term alignment. But they must remain in-check as Hydrex scales up reward distribution.

As a result, we are introducing a clear separation of Hydrex emissions into 2 categories:

1. Earning Power Emissions (permalocked) - The amount of Hydrex Earning Power emitted any given week. For example, through Rebases & the Anchor Club.

2. Liquid Emissions - The maximum amount of liquid HYDX that can be emitted any given week, assuming all oHYDX liquid options are exercised.

This separation is enabled by a combination of features such as rebases and utilizing the Partner & Community Growth Gauge. As previously announced, the Hydrex Treasury directs its voting power to support long-term programs like the Anchor Club, instead of competing for weekly fees.

Accounting for all current factors, after the flip of week 5, 73.4% of emissions will be exclusively permalocked Earning Power Emissions versus a maximum of 26.6% for Liquid Emissions. These rates are determined by many factors, such as treasury voting power, rebase proportions, and more. They will adjust as the protocol grows and will be shared with the community (see #4 below).

The net effects:

• Emissions rate stays the same, but the majority will be more intelligently routed as permalocked Earning Power Emissions via programs like Anchor Club.

• Liquid Emissions remain in check, without compromising on incentives.

• Hydrex Treasury continues to avoid diluting votes, giving weekly fees to account holders.

• Anchor Club begins in Early November.

Our vision for the Strategic Protocol Reserve is to serve as a fundamental yield generator for Hydrex Account holders. It’s time to begin that process.

Sitting at a current market value of ~$450,000, Hydrex will begin deploying the SPR capital, with the initial breakdown as follows:

All Strategic Protocol Reserve holdings are presently visible on DeBank here and will begin producing yield for voters on or before October 31st.

The net effects:

• Hydrex Account holders will receive all yield generated from Strategic Protocol Reserve liquidity positions.

• Hydrex will be able to strategically acquire positions in select partner & Base ecosystem tokens.

With all of the above, it’s clear that Hydrex users will need a comprehensive view to understand the moving pieces of the protocol.

We have heard the many user requests for data & will begin rolling out an incremental dashboard, as well as 3rd party integrations (such as DeFiLlama) alongside the completion of the above.

The dashboard is expected to progressively include the following from mid-November to mid-December.

• Essential Protocol Metrics (historical volume, fees, bribes, etc.)

• Automations & Anchor Club Information

• Hydrex Account Locker Information

• Partner Incentive Efficiency

Our team always appreciates community feedback, and encourage you to join our Discord & share if you have any wishes for data insights or preferences.

The cumulative results of Hydrex Surge positions Hydrex as cutting-edge Omni-Liquidity DEX on Base, optimizing for long-term alignment & user-centrism, while also unlocking access to broader DeFi markets.

Hydrex continues to pursue our mission of bringing more of the world onchain & opening up DeFi for everyone.