Hermes Protocol

Hermes Protocol is a non-custodial decentralized exchange launched in February 2022 by Hermes Protocol, with emissions beginning in March 2022. It supports token swaps between volatile assets and stablecoins, using liquidity pools rather than direct buyer-seller matching. The described architecture is based on liquidity pool mechanics similar to Uniswap, with liquidity provided by participants and rewarded accordingly.

Hermes token functionality is described in relation to staking for veHermes. Staked veHermes is used for governance actions such as deciding on adding new gauges, boosting gauge yields, voting on token emission, and receiving bribes. The Hermes V2 roadmap described includes an omnichain environment without a bridge, concentrated and unified liquidity, decentralized Uniswap V3 liquidity management, Uniswap V3 liquidity incentives, a refined ve(3,3) approach made fungible via ERC-4626, improved user experience, and an omnichain yield marketplace.