A new champion arises: Introducing HerculesDEX

The Next-Generation DEX to Drive the Metis Ecosystem

Hercules Exchange
4 min readJul 27, 2023


  • Hercules is Metis’ champion, uniting builders under one hub. It is a community-owned DEX for real yield and customizable liquidity infrastructure.
  • Metis is evolving through a first-of-its-kind Hybrid Rollup that reduces the on-chain data load, allowing for lower transaction costs and the creation of more complex and sophisticated smart contracts.
  • Partnered protocols will participate in the growth of the Metis’ next-generation DEX and have access to tools enabling customizable and targeted liquidity provisioning to manage their POL and community liquidity.


Metis is entering a new era of innovation and its community needs a DEX rich with features that can rise to meet the new DeFi landscape. By leveraging the latest in DeFi technology, Hercules aims to become the Metis ecosystem champion DEX by bringing cutting-edge features that enable a high degree of flexibility for both users and builders. In this article, we will discuss our vision, the platform’s unique features, and how it is positioning itself to drive the Metis ecosystem forward.

Hercules is beyond your typical DEX. First and foremost, it is a community-first and real yield protocol. It offers several innovative components that make it both a capital-efficient and flexible platform. Unlike most DEXs, builders can utilize the flexible nature of the Hercules’ platform to offer customized incentive structures and sustainable liquidity, all while allowing users to earn real yields off their assets by helping Metis to achieve deep on-chain liquidity.

The vision

The DEX is built with an ecosystem-oriented mindset, where our vision is to:

  • Support builders by providing tools that help them launch, bootstrap liquidity, create partnerships and gain exposure to the wider Metis ecosystem.
  • Create a sustainable DEX that focuses protocol rewards to builders, liquidity providers, token holders, and contributors for making long-term commitments to growing Metis and its champion DEX.
  • Create sticky liquidity using an innovative dual-token framework and real yield model for a better incentive structure.
  • Offer multiple layers of composability that allows other protocols to build on top and actively expand the network activity.
  • Incentivize developers through ecosystem grants, and grant exclusive access to other builders in the ecosystem.
  • Assure long-term sustainable liquidity for the Metis network with extra real yield sources (Builder Mining Program, Sequencer Pool, etc.).

The Hero that Metis Needs

Hercules will become an ecosystem hub by offering a wide range of advanced features, giving to native and non-native protocols all the resources they require to get started, bootstrap liquidity, and uphold their growth on Metis.

These are the cutting-edge features that enable a high degree of flexibility to align incentives with the community, builders, and platform:

  1. clAMM abstraction: Simplified integration of concentrated liquidity into the DEX flywheel to increase its adoption.
  2. dAMM: Dynamic AMM supports volatile pairs like UniV2 and also includes support for correlated assets such as stable pairs.
  3. Directional fees: Customize swap fees based on the direction (buying or selling) to optimize liquidity strategies for protocols.
  4. Liquidity position NFTs: Yield-bearing spNFTs add composability and enhance capital efficiency.
  5. Precise user profile: Protocols can benefit from nitro pools to reward their most loyal and committed LPs by setting specific requirements.
  6. Customized launchpad: A custom-built platform offering several token launch strategies including fair-launch, referrals, discounts, airdrop, whitelist, etc.
  7. Swap referral: The platform offers a whitelisted referral system to share swap fees with partners/integrators.
  8. Dual-token design: Two tokens, TORCH and xTORCH, enable flexibility for vesting and DEX profit sharing.
  9. Deflationary mechanisms: Integrated burn mechanism in xTORCH and TORCH buybacks ensure long-term growth and sustainability.
  10. Ownership stake: Protocol owned-liquidity (POL) gets a share of Hercules benefiting from reducing emission costs, increasing their treasury, or building new flywheels.

Another key aspect of Hercules is that it aims to provide grants to builders who seek to empower the Metis ecosystem.

Olympic Circle

User-owned liquidity is frequently not committed to the long-term success of a protocol or ecosystem because speculators only seek the highest APRs. Protocol Owned-Liquidity (POL), however, is an effective longer-term liquidity strategy that incentivizes protocols to park liquidity on Hercules in the form of an ownership stake in the protocol.

As mentioned previously, the Nitro Pool is a cutting-edge feature of the DEX, which is separated into two categories:

  • Endorsed pools: Deployable by either Hercules or confirmed partners, offering a higher degree of customization options and scalability than standard pools.
  • Community pools: Deployable by anyone.

Protocols leveraging a Nitro Pool can set different requirements to target the precise staking user’s profile like minimum amount, minimum given duration, specified end time, whitelisted addresses, etc. Thus, rewarding their most loyal and committed LPs, ensuring stable growth over time, and therefore spending its incentives efficiently.

Protocols that join Hercules’ Olympic Circle will form the foundation for a long-term relationship, closely aligning our shared vision of growing the network.

About HerculesDEX

Hercules is a community-first, capital efficient, and flexible DEX developed with multiple tools to support the next generation of builders who look for sustainable liquidity in the Metis network.

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Hercules Exchange

A community-first-next-generation DEX for real yield and customizable liquidity infrastructure to the Metis network