We're pleased to introduce Dazhbog, a decentralized perpetual futures exchange planned for implementation on the Hydration parachain. Dazhbog allows users to trade perpetual futures contracts securely, transparently, and efficiently.

The platform allows users to trade perpetual futures contracts in a decentralized manner, leveraging the security, scalability, and interoperability of the Polkadot network. By integrating into the Hydration parachain, Dazhbog aims to provide a seamless and efficient trading experience without relying on centralized intermediaries.

Dazhbog's core concept and technical feasibility were rigorously validated. Our project secured first place in the DeFi category at the Polkadot Prodigy hackathon (https://www.polkadotprodigy.com), a prestigious competition within the Polkadot ecosystem. Here is the link https://x.com/PolkadotProdigy/status/1800506214658494794 of the Twitter post where the winner was announced. This achievement demonstrates the extensive research conducted and the project's potential. The recognition highlights the traction Dazhbog has gained within the Polkadot community, further motivating our team to pursue its development.

Our initial plan was to apply for the Decentralized Futures program with Dazhbog as a whole project. However, at the end, we decided to proceed step by step as we started, first validating the idea at the Polkadot Prodigy hackathon where we won 1st place place in the DeFi category, and then applying for a Web3 Foundation Level 2 grant for the Proof-of-Concept of Dazhbog.

As you will see in the comments on the application from W3F people, and as we discussed with some in person at Decoded, they find the idea interesting but recommend that we approach the Hydra Treasury directly instead of pursuing the Level 2 grant.
Also, at Polkadot Decoded, we talked with Jakub Gregus (Hydra CEO) and Jakub Panik (Hydra CTO), they liked the idea, but we're also interested in the opinion of the Hydration community.

Below, I am sending the Level 2 grant application, Pitch Deck, and Whitepaper where you can read more about the project.

Level 2 Grant Application (we applied for the Proof of Concept) - https://github.com/Ceres-Blockchain-Solutions/W3F-Grants-program/blob/7083ed96603635f78159ba6e1aaf77dc86f1a752/applications/Dazhbog.md
Level 2 Grant Discussion - https://github.com/w3f/Grants-Program/pull/2338
Pitch Deck - https://drive.google.com/file/d/1GcV3rve6ChxUiNDFok5VImYQzNo-LgWT
Whitepaper - https://drive.google.com/file/d/14xV1bsHz5rH5NibBrFE6MMjqCUGLLO_9

The full proposal with a Time & Budget Breakdown is available here - https://docs.google.com/document/d/13F4tM_uS4XqDc1Ek8NHHb52ZfB-S-Vswcqme_Iux3fQ

Note - Funding for this proposal does not necessarily have to go through the Hydra Treasury; it can also go through OpenGov. The goal of this post is to determine whether the Hydra community wants this product on the chain and whether the Hydra team is willing to let us develop the product.

We welcome your feedback and invite you to join the conversation!

Best regards,
Danijel