Hydranet (HDN) is a Decentralized Autonomous Organization that has developed the Hydranet DEX, a Layer 3 trading platform. This platform seeks to bridge the worlds of Bitcoin and Ethereum using Layer 2 off-chain protocols such as the Lightning Network and the Connext Vector Network. The Hydranet DEX allows users to trade between Bitcoin and EVM-based blockchains without giving up custody of their funds, with near-instant settlement times and low costs. The Hydranet Network, which hosts the DEX's limit order book, powers the Hydranet DEX. The network is maintained by two distinct actors: Titans and Guardians, who aim to ensure the network's continuous operation and integrity, respectively.

Hydranet operates through its Hydranet DEX, a Layer 3 trading platform that uses Layer 2 off-chain protocols. Trades on the Hydranet DEX are executed off-chain, fully peer-to-peer, and are secured using hashed timelock contracts. This means that either both peers or no peer receives the agreed-upon funds. The Hydranet DEX is powered by the Hydranet Network, which is overseen by Titans and Guardians. Titans aim to ensure the network's continuous operation by hosting the exchange's limit order book, offering rental liquidity, and acting as a matchmaking engine between trading peers. Guardians strive to uphold the network's integrity by monitoring the behavior of both traders and Titans to ensure compliance with the network's rules.

Hydranet seeks to address the critical challenges associated with self-custody, transaction times, transaction costs, and scalability in the world of cryptocurrency trading. The Hydranet DEX offers a solution to these challenges by operating on a trustless basis, meaning users always retain control of their funds. The DEX leverages off-chain technologies to aim to enhance transaction times and reduce costs significantly. By keeping the transaction process off the main blockchains, trades are executed near-instantly and for minimal fees. This positions Hydranet as a potential solution for individuals and organizations looking for a platform for cryptocurrency trading.

Hydranet released the first version of the Hydranet DEX on the 23rd of September 2023. This version was delivered as a downloadable desktop client and offered an interface and trading experience, along with security features. Hydranet worked on an upgraded version of their DEX, a platform-agnostic web version that was readily available from the browser. This web version inherited all the components of its desktop counterpart as well as Hydranet’s EVM off-chain protocol, Lithium. The Hydranet project is community-driven, with a diverse team of volunteers dedicating their time to its development and management.