Today, KuCoin Exchange officially announced that the ERC 404 A project, Hourglass Protocol, will be listed soon. As an emerging ERC 404 A project, Hourglass Protocol is gradually gaining market recognition with its innovative ERC 404 A standard and hourglass cooling mechanism. In the past week, $HGP has performed remarkably well on Uniswap, with a 20x increase. This article will analyze how the low-cap Hourglass Protocol achieved such a high surge and decipher its upcoming catalyst for exponential growth.

1. Innovative Solution to NFT Liquidity Challenge: Introducing a New Gameplay of Token Interchange

Restarting the Era of Fragmented NFTs

Pandora adopts an experimental token standard called ERC 404, which is a hybrid between ERC 20 and ERC 721, enabling users to trade on platforms such as Uniswap and Opensea. The emergence of the ERC 404 token standard provides technical support for the fragmentation of NFTs, allowing users to flexibly participate in NFT investments by holding a certain amount of tokens rather than complete NFTs. Essentially, it establishes a symbiotic relationship between FT and NFT to address the liquidity issue of NFTs.

Hourglass Protocol: Upgrading ERC 404 A

Hourglass Protocol is the first on-chain hourglass protocol deployed on the Ethereum network, combining ERC 404 A, ERC 20, ERC 721 implementation, and native liquidity. It extends the idea of a tension-driven hourglass in games to potentially solve the liquidity problem faced by NFTs. In the field of digital asset standards, ERC 404 A is an upgraded version of ERC 404, reducing user transaction costs by implementing transactions with smaller asset units.

The hourglass cooldown mechanism has been newly added, adding a time constraint for users between coin conversions, similar to the cooldown time of props or skills in games. The coin conversion can only be completed when the hourglass timer expires. The hourglass protocol allows users to limit certain operations or transactions related to hourglass assets within specified time periods. These time periods can be used when users want to prevent excessive asset fluctuations or manipulation. It provides a mechanism to ensure stability and promote a more controlled trading environment.

Comparison of ERC 404 and ERC 404 A

ERC 404 and ERC 404 A, as representatives of digital asset standards, have their own characteristics, bringing new opportunities and possibilities for the development of digital assets.

Compared to ERC 404, the ERC 404 A of the Hourglass Protocol ensures forward compatibility with the old asset protocol while guaranteeing the launch of ERC 404 new assets. This allows existing ERC 20 and ERC 721 assets to participate in its hourglass protocol and combines features such as setting cooldown time and the exchange ratio of image coins and binary assets, expanding the usage scenarios of the protocol.

II. ERC 404 A Standard: Bringing Flexibility and Stability to Digital Assets

Technological Upgrades

Compared to the ERC 404 standard, the ERC 404 A standard of the Hourglass Protocol further promotes development and transformation at the technical level. One of the biggest advantages of the ERC 404 A standard is its forward compatibility with the old asset protocol, which means that existing ERC 20 and ERC 721 assets can participate in the hourglass protocol of the Hourglass Protocol without the need for complicated migration or conversion. This feature provides users and project parties with great convenience and flexibility while reducing the risks and uncertainties during the migration process.

In the Hourglass Protocol under the ERC 404 A standard, users can freely set the conversion ratio of the currency, customize the cooling time, and set the trading cycle of the assets according to their needs and preferences to achieve asset appreciation and stability.

Product Upgrade

The upcoming update of the Hourglass Protocol aims to make it a more powerful and diverse digital asset trading platform. With the ERC 404 A standard, users can stake HGP tokens and enjoy the convenience of one-click issuance, easily achieving token synchronous release. In addition, to provide a comprehensive on-chain ecosystem experience, Hourglass Protocol is not only compatible with ETH, but also extends support to all EVM-compatible chains including BSC, Arbitrum, and Polygon to meet the needs of more users.

Mechanism Innovation

The Hourglass Protocol introduces an innovative approach - the hourglass cooling mechanism, which provides users with more diversified and feature-rich options in digital asset trading. This mechanism manages asset conversions by setting time limits, allowing users to impose restrictions on their assets' actions or transactions within specified time periods. This measure aims to lower the risk of excessive asset fluctuations or prevent manipulative behavior, making the trading process more stable while giving users greater flexibility and decision buffer time.

III. Expanding Application Space: GameFi and DeFi Bring More Opportunities for Ecosystem Development

The Hourglass Protocol is not just a digital asset trading platform; it also has extensive application prospects in gaming and other Web3 industries. In the gaming field, the hourglass mechanism of the Hourglass Protocol can seamlessly integrate with the cooldown mechanism for in-game items. Through the Hourglass Protocol, game developers can design more creative and strategic gameplay, using the hourglass mechanism to control the supply and demand of in-game assets, thereby achieving stability and development of the in-game economy. Additionally, the Hourglass Protocol can be combined with other game elements such as NFT collectibles, in-game trading markets, etc., to provide gamers with a more diverse gaming experience and investment opportunities.

In addition to the gaming field, Hourglass Protocol also has extensive application prospects in other Web3 industries. For example, in the DeFi field, Hourglass Protocol's hourglass mechanism can be used to stabilize asset prices and improve liquidity, providing users with a safer and more efficient trading environment. In the SocialFi field, Hourglass Protocol can be used to create community tokens, reward mechanisms, etc., promoting community participation and consensus. In the AI field, Hourglass Protocol's smart contract technology can be used for data exchange, trust building, etc., promoting the development and expansion of AI applications and scenarios.

IV. Transaction Data Comparison

The current price of PANDORA coin is stable at $24,263, while the total supply of Hourglass Protocol token $HGP is 800, with no possibility of further issuance, and the current price is stable at $8,141, reaching a high point of over $10,000 at one point.

As the representative of ERC 404 A protocol, Hourglass Protocol achieved a 10-fold increase in token price in just one week after its launch, demonstrating tremendous growth potential. In comparison, Pandora has a relatively higher market value at this stage, while Hourglass Protocol is still in its early stages of market performance, providing investors with a lower entry threshold and greater growth potential.

Conclusion

Hourglass Protocol will serve as a rising star in the digital asset industry, leading the future development of the industry. Its advanced technology and functionalities, as well as broad application prospects, make it a leader and innovator in the digital asset field.

With the listing of $HGP on the KuCoin exchange to increase liquidity and promote the overall development of its project, it is expected that Hourglass Protocol will capture a large amount of liquidity through its ecosystem and various product suites, benefiting $HGP holders in the medium to long term, and may potentially achieve a market value of over $100 million in the short term.