Important: As per this announcement, HOT is delisted from Bitfinex, ceasing trading on 26/03/21 at 9:00 AM UTC.
The Hydro Protocol (HOT) is a network layer built specifically for enhancing the functionality and adaptability of decentralised exchanges. As well as making use of Federated Liquidity Pools (FLPs) as a way to combat the issue of liquidity sharing between decentralised exchanges, The Hydro Protocol defines the common rules for order execution, incentivises coordination and provides the mechanism for order matching between DEX’s. The HOT tokens are designed with three main purposes in mind; pool membership; as an incentive mechanism and as a bounty system for market makers.