Hercules is a decentralized exchange (AMM DEX) built on the METIS network, inspired by Camelot DEX but with many improvements in liquidation model and user experience.
Hercules applies dynamic AMM technology, concentrated liquidity (clAMM) and Non-Fungible Token mechanism to optimize liquidation performance, rewards and governance in the METIS ecosystem.
- Hercules is an AMM DEX on METIS, combining Camelot DEX design and many innovations like dynamic fees, spNFTs.
- Multi-version AMM system (V2, V3, Aggregator) optimizes fees, performance, and swap/liquidity experience.
- The TORCH Token serves as governance, rewards, and Staking , with the xTORCH mechanism providing long-term benefits.
What is Hercules?
Hercules is an AMM DEX exchange that operates on the METIS network, allowing users to Token Swap, provide liquidation , and participate in farming.
Inspired by Camelot DEX on Arbitrum , Hercules not only replicates the model but also develops additional technologies such as dynamic AMM, concentrated liquidity, and spNFT to improve user experience and Capital efficiency in DeFi.
“Hercules' goal is to deliver the most flexible, efficient, and user-friendly DeFi experience on METIS.”
— Hercules Team, MetisEDF 2024 Press Release
As new generation AMM DEXs continue to improve their liquidation models and Capital efficiency, platforms like BingX is also expanding its on-chain data and analytics tools to help traders easily track DeFi trends like Hercules, Camelot or Uniswap V3, thereby capturing more effective investment opportunities on Layer 2 networks like METIS.
What are Hercules products?
Hercules deploys three versions of AMM: V2, V3 and Aggregator, each optimized for different purposes in trading and liquidation provision.
AMM V2 inherits the model of Uniswap V2, AMM V3 is similar to Uniswap V3 with centralized liquidation , and Aggregator allows users to swap across multiple DEXs supported by Hercules, helping to optimize prices and costs.
How does Hercules AMM V2 work?
AMM V2 uses the same constant formula x*y=k as Uniswap V2, while adding Solidly logic for stablecoins .
The system introduces two types of liquidation pools – for volatile Token and stable Token – along with dynamic fee and referral models.
Dynamic Fee model automatically adjusts according to market fluctuations and transaction direction (buy/sell), helping to minimize slippage and optimize LP profits during periods of strong market volatility.
“Dynamic fees are an inevitable trend that helps AMM DEX compete with CEX in terms of price efficiency.”
— Andre Cronje, Founder of Yearn Finance, 2023 (source: Cointelegraph)
What makes Hercules AMM V3 stand out?
Hercules V3 AMM inherits Uniswap V3's concentrated liquidity model but is refined with customizable Tickspacing features and flexible fees based on trade direction.
This allows LPs to tailor their pricing ranges and fee structures to each market, improving Capital efficiency and maximizing returns.
| Characteristic | Uniswap V3 | Hercules V3 |
|---|---|---|
| Tickspacing | Permanent | Flexible customization |
| Transaction fees | Fixed by pool | Move in the direction of buying/selling |
| Stable pool support | Limit | Solidly Logic Integration |
What is spNFT and what Vai does it play in the Hercules ecosystem?
spNFT (Staked Position Non-Fungible Token ) is an Non-Fungible Token that represents liquidation positions Stake on Hercules, Vai as both a receipt and providing scaling benefits.
When a user Stake LP Token, the system generates a corresponding spNFT containing ID information, LP type, APY, lock time, and multiplier. Users must use spNFTs to withdraw assets or receive rewards.
“Hercules' spNFT mechanism takes the LP Token concept to the next level, turning it into a DeFi asset with extended value.”
— Coin98 Insights, METIS Ecosystem 2024 Report
What is TORCH Token ?
TORCH is the Governance Token of Hercules on the METIS Andromeda network, used for voting, paying transaction fees, Staking , and receiving rewards.
The total supply of TORCH is 10,000,000 Token, with multiple allocations to ensure balance between community, team, and long-term development.
TORCH Token Details
| Information | Detail |
|---|---|
| Token name | Hercules |
| Symbol | TORCH |
| Blockchain | METIS Andromeda Network |
| Total supply | 10,000,000 TORCH |
| Standard | Governance Token |
TORCH Token Allocation
| Category | Rate (%) |
|---|---|
| Liquidity Mining | 22.5% |
| Core Contributors | 20% |
| Fair Launch | 12% |
| Partnerships | 9% |
| Protocol Owned Liquidity | 7.5% |
| Camelot Dao | 7.5% |
| Ecosystem | 6.2% |
| Reserves | 6% |
| Genesis Pools | 3.5% |
| Advisors | 2% |
| Genesis Pools Boost | 1.5% |
| Hercules Knife | 1.3% |
| Bug Bounty | 1% |
What is xTORCH?
xTORCH is a Token created when users Stake TORCH, which increases profits and voting rights in protocol governance.
This mechanism encourages long-term holding by users, while providing sustainable Staking rewards to the Hercules community.
Hercules Team, Investors and Partners
The Hercules development team is currently anonymous, but the project is officially supported by the METIS Ecosystem Development Fund (METIS EDF ).
Hercules also cooperates with many infrastructure partners such as OpenOcean , Lifi, Synapse… to expand liquidation and multi- chain integration capabilities.
“Hercules is one of the most promising projects supported by METIS EDF in the AMM DEX space.”
— METIS Ecosystem Report 2024
What are similar projects to Hercules?
Camelot DEX on Arbitrum and Uniswap V3 on Ethereum are two projects with similar models to Hercules. Both aim to optimize liquidation and LP yields through dual AMM and concentrated liquidity.
| Project | Network | Main model | Highlights |
|---|---|---|---|
| Camelot | Arbitrum | Dual AMM | Flexible fees, stable pool support |
| Uniswap V3 | Ethereum | Concentrated liquidity | High Capital efficiency, Tick mechanism |
| Hercules | METIS | Dynamic AMM + spNFT | Non-Fungible Token liquidation , dynamic fees |
Frequently Asked Questions
What network does Hercules operate on?
Hercules is built and deployed on the METIS Andromeda Network, an optimal Layer 2 solution for DeFi.
Can spNFTs be traded or transferred?
spNFTs can be traded like regular Non-Fungible Token , depending on the lock policy of each liquidation pool.
How is xTORCH different from TORCH?
xTORCH is Mint when users Stake TORCH, giving them additional rewards and increased governance rights.
Does Hercules support multi- chain swaps?
Through Aggregator and partners like Lifi, Hercules supports users to swap between different networks in the ecosystem.
Who is investing and supporting Hercules?
Hercules is supported by the METIS Ecosystem Development Fund (METIS EDF), an official METIS development fund.
