Hydra Hub – SaaS Node Distribution System Phase 1

[Proposal setup] Proposal title

Please provide your proposal title

Hydra Hub – SaaS Node Distribution System Phase 1

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

100000

[Proposal Summary] Time

Please specify how many months you expect your project to last

6

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

Developers struggle with complex setup and lack of affordable Hydra nodes for testing, limiting dApp development and reducing the appeal of Hydra and the Cardano ecosystem

[Proposal Summary] Supporting Documentation

Supporting links

• https://github.com/Vtechcom/hydra-hub-design-docs/blob/main/docs/guides/index-en.md
,
• https://hydrahub.io.vn/
,
• https://drive.google.com/file/d/1ayRGmFKp9rmc3Rb_bOr_-iwJooKXIRwC/view

[Proposal Summary] Project Dependencies

Does your project have any dependencies on other organizations, technical or otherwise?

Yes

Describe any dependencies or write 'No dependencies'

Hydra Hub depends on the Hydra protocol and related tools developed by IOG and CF, the Cardano-node infrastructure for L1 interaction, and the Hydra Hexcore toolkit currently being developed by our team

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

When the system is fully developed and operating stably, all Hydra Hub source code, deployment scripts, and documentation will be released entirely under the MIT License. This ensures transparency, encourages community contributions, and allows developers to freely use, customize, and expand the platform

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal.

Infrastructure

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

Hydra Hub is the first shared, low-cost, and scalable Hydra infrastructure platform, enabling developers to instantly access ready-to-use Hydra nodes without complex setup or expensive servers. Unlike previous funding efforts focusing on single-use Hydra demos or tools, Hydra Hub creates a persistent, community-powered network of Hydra nodes, combined with our Hydra Hexcore management toolkit, to make Hydra adoption easy, transparent, and sustainable

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

The MVP will demonstrate a fully functional Hydra Hub platform, providing: (1) registration and management for Hydra infrastructure providers, (2) instant Hydra node access for developers, and (3) usage metrics for billing and performance tracking. It will be deployed on testnet and accessible via a public web interface and API, allowing the community to test building and deploying dApps with Hydra technology

Describe realistic measures of success, ideally with on-chain metrics.

Success will be measured by: (1) number of active Hydra nodes registered on Hydra Hub, (2) number of developers/projects using the platform, (3) total testnet/mainnet transactions processed through Hydra Hub, and (4) node uptime and reliability metrics. All usage data will be tracked and verified through on-chain activity logs and publicly available dashboards to ensure transparency

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Hydra Hub is a technological solution designed to connect clients (Consumer Clients) with Hydra Nodes through a proxy (HydraHUB) provided by various Providers.

Developers requiring Hydra Nodes to deploy applications can simply register as Consumer Clients and utilize Hydra services from Providers in a straightforward and rapid manner. This approach offers significantly lower costs compared to self-hosting, while eliminating the challenges associated with:

1. Complex synchronization with Cardano Nodes.
2. Manual key management and security.
3. Monitoring and error handling.
4. Managing unstable communication between Hydra Nodes.

System Diagram of the Hydra HUB Solution

Figure 01: Diagram illustrating the deployment architecture of the Hydra HUB system, a solution for connecting clients (Consumer Clients) with Hydra Nodes via a proxy

Description:

1. Consumer Client:

• DApps (UI): Decentralized applications (DApps) utilized by Consumers.
• Communicates with the Hydra HUB Service via WebSocket (WS) or HTTP using an API key.
• Example: Sending a GET request to https://api-key-cb3ec.hydranode.io/commits.

1. Hydra HUB:

Hydra HUB Service: Central service managing:

• API Keys Manager: Manages API keys.
• Consumer Portal (UI): User interface for managing client information.
• Provider Info: Information about Providers.
• Proxy Mappers: Maps requests to Hydra Nodes.

Hydra Node Proxy: Intermediate proxy facilitating communication with Hydra Nodes via WS/HTTP.

Communicates with Consumer Clients using Socket.io or HTTP.

1. Providers:

Provider 1 (123.2.12.3) and Provider 2 (345.2.12.3): Clusters of servers or service providers.

Each Provider includes:

• Hexcore Dashboard UI: Administrative interface.
• Cardano Node: A node of the Cardano blockchain.
• Hydra Nodes: Individual Hydra Nodes (e.g., 10001, 10002), which may run on Docker or Kubernetes (K8s).

Communicates with Hydra HUB via WS/HTTP.

1. Hydra Nodes:

• Sub-nodes (e.g., 10001, 10002) that process requests from the Hydra HUB Proxy.
• Can operate on Docker or Kubernetes, handling blockchain-related tasks (Cardano).

1. Communication Flow:

• Consumer Client sends a request to the Hydra HUB Service (via API key).
• Hydra HUB Service forwards the request through the Proxy to Hydra Nodes.
• Hydra Nodes process the request and return results via the Proxy.

Figure 02: Sequence diagram illustrating the interaction between the Client, Hydra Hub, and Hydra Node.

[Your Project and Solution] Impact

Please define the positive impact your project will have on the wider Cardano community

The project will deliver to the Cardano community the first complete Hydra Hub prototype, helping to lower the barriers to adopting Hydra technology. DApp development teams will be able to adopt Hydra more quickly and scale their applications without the need for expensive and complex initial infrastructure investment. They can focus entirely on product ideas and business models tailored to their target user base.

In addition, once fully developed, Hydra Hub will bring significant positive impacts such as:

Enhancing the appeal of Cardano and Hydra

By providing ready-to-use infrastructure services for DApps, user experience will be significantly improved, increasing the overall attractiveness of Cardano and especially Hydra.

Creating economic value for the community

By optimizing and reducing costs for both developers (users) and businesses deploying on Hydra through a pay-per-use model, the solution offers a more accessible and cost-effective development pathway.

Encouraging participation from idle infrastructure providers

The system incentivizes server providers with idle or surplus capacity to join and offer services, creating new business opportunities and increasing their revenue streams.

Improving security and stability

Developers will no longer need to worry about system security and stability. Once completed, Hydra Hub will ensure the quality of provided nodes, reducing the security risks typically encountered when each project operates its own infrastructure.

Accelerating innovation and attracting investment

A complete and accessible Hydra service platform will attract more new projects to Cardano and accelerate the pace of innovation across the ecosystem. Return on investment (ROI) will increase by lowering the barrier to adopting Layer 2 technology, enabling DApps to launch faster and reach users sooner — creating genuine excitement and momentum for the ecosystem.

[Your Project and Solution] Capabilities & Feasibility

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Experience and Expertise in Working with Hydra Technology

We have directly deployed and operated alpha-stage products utilizing the latest Hydra technology, version v0.22, provided by the IOG development team, in order to practically validate Hydra’s performance and stability prior to its official release, including:

• Hydra Wallet: A lightweight wallet with both web and Telegram interfaces, directly connected to Hydra Head. https://hydrawallet.app/
• Hydra FastPay: A fast-payment application using ADA/tokens via Hydra. https://hydrawallet.app/marketplace/hydra-fastpay-en
• Rock Paper Scissors Game – A multi-step game built on Hydra, integrating commit–reveal and reward distribution. https://hydrawallet.app/marketplace/rock-paper-scissors
• We have also developed an explorer tool for Hydra applications https://explorer.hydrawallet.app/
• And many other DApps currently in our development roadmap, to be released on the Hydra App Marketplace (https://hydrawallet.app/marketplace)..)

These products not only showcase our development capability but also prove our ability to deploy real-world Layer 2 dApps using Hydra. They also give us deep insights into the challenges developers face or will face when building with Hydra technology. Therefore, Hydra Hub is designed based on real-world needs, backed by our hands-on knowledge and experience.

In addition, our company’s development team has made direct contributions to the Hydra development team at IOG through:

• Submitting bug reports
• Proposing feature requests
• Testing and verifying real-world technical issues

Proof: Our GitHub account aniadev has created and discussed multiple technical issues with the Hydra team, including:

• Validation issues with Aiken built-in functions and validity_range https://github.com/cardano-scaling/hydra/issues/2162
• Intermittent DepositExpired errors before deadline https://github.com/cardano-scaling/hydra/issues/2144
• Feature request: Allow partial ADA commit from UTxO https://github.com/cardano-scaling/hydra/issues/2140
• Hydra Head Not Confirming Snapshot UTxO After TxValid When Interacting with Contract Using inlineDatum https://github.com/cardano-scaling/hydra/issues/2113
• ... and many other technical reports https://github.com/cardano-scaling/hydra/issues?q=author%3Aaniadev

This demonstrates that we are not only users of Hydra but also collaborators with the Hydra development team, contributing to the improvement and refinement of the protocol.

Project Feasibility

The project has been thoroughly researched before submission and divided into clear functional modules with defined implementation phases. The community can view the detailed technical analysis and planned roadmap here:

https://github.com/Vtechcom/hydra-hub-design-docs/blob/main/docs/guides/index-en.md

Each component can be developed, tested, and deployed independently. Our team members are experienced programmers and project managers with many years in the software outsourcing industry.

Core Team:

• 1 Project Manager (10+ years of experience)
• 4 Core Developers (frontend, backend, blockchain, 2–10+ years of experience)
• 1 UI/UX Specialist (3+ years of dApp design experience)
• 1 QA Specialist (8+ years of testing experience)

If necessary, the company will allocate additional internal resources to ensure progress and output quality.

Commitment to Delivery & Refund

We commit to:

• Completing the project according to the proposed schedule.
• Ensuring technical quality, stability, and scalability.
• Delivering a transparent, open-source product that is easy to maintain and provides long-term support.

If we are unable to deliver the product as committed, we will refund the full amount of ADA granted from the Catalyst community treasury.

[Milestones] Project Milestones

Milestone Title

Hydra Hub Core System Development

Milestone Outputs

The deliverable for this milestone is the core Hydra Hub web platform, consisting of two main components:

• Consumer Portal – A user interface for developers or end-users to register an account, securely authenticate, and submit requests for Hydra node access. The portal will include account management, profile editing, and the ability to submit usage requests with a description of the intended dApp testing purpose. The system will support multiple devices (desktop, mobile) and feature a friendly, easy-to-use interface.

• Admin Dashboard – An interface for Hydra Hub administrators to review requests, allocate nodes, monitor node status, track system performance, and manage the entire consumer list. The dashboard will include functions to display activity logs, real-time node status reports, and manage allocation history.

In addition, the system will incorporate strict authentication and role-based access control to ensure a clear separation of functions between consumers and admins. All functions will be programmed for scalability to support a decentralized model in later phases. The entire source code will be released under the MIT license, with detailed documentation provided.

Acceptance Criteria

• Consumers can create a new account, log in, and update their personal information in the Consumer Portal.

• Consumers can submit requests for Hydra node access, which are reviewed and responded to by an administrator through the Admin Dashboard.

• The Admin Dashboard displays the consumer list, pending requests, and real-time node allocation status.

• Administrators can allocate or revoke node usage rights for consumers.

• Role-based access control works correctly, preventing consumers from accessing admin-only features.

• The system passes internal testing for functionality, browser compatibility, and device responsiveness.

• The portal and dashboard are fully integrated with the database and backend APIs.

• Full installation, deployment, and usage documentation is provided.

Evidence of Completion

• Link to the deployed Consumer Portal and Admin Dashboard running on Cardano testnet.

• GitHub link to the open-source code (MIT license) with setup and operation instructions.

• A set of screenshots and videos showing key workflows (registration, approval, node allocation).

• QA test report including functional, usability, and security testing.

• Confirmation that at least three consumers have successfully created accounts and been allocated nodes during internal testing.

• Public announcement on Cardano community channels announcing the launch of the Portal and Dashboard.

Delivery Month

2

Cost

30000

Progress

30 %

Milestone Title

Single Provider Node Setup & Integration

Milestone Outputs

This milestone focuses on deploying a sample provider operated by Hydra Hub for testing purposes. This node will serve as the sole provider in the initial phase, enabling better control over technical and security aspects before expanding to a decentralized model. Tasks include:

• Setting up a physical or cloud server meeting the resource requirements of a Hydra node (CPU, RAM, network bandwidth, low latency).

• Installing and configuring the Hydra node according to technical specifications, ensuring stable connectivity with the Cardano L1 node.

• Integrating the provider node with the Hydra Hub system developed in Milestone #1, enabling admins to allocate nodes to consumers directly from the dashboard.

• Implementing real-time monitoring and alert mechanisms to detect node issues or resource threshold breaches.

• Testing with initial consumers: inviting several developers to register and test their dApps via this node, recording usage logs for performance analysis.

Acceptance Criteria

• The Hydra node is successfully deployed, stably connected to Cardano L1, and operates continuously during testing.

• The node is fully integrated into the Hydra Hub system, enabling admins to allocate it to consumers via the dashboard.

• Once allocated, consumers can create and interact with Hydra Heads to test their dApps.

• The monitoring system displays real-time node metrics (CPU, RAM, network connectivity) and sends alerts when issues occur.

• At least three consumers successfully test their dApps using this node.

• A complete deployment guide for setting up a provider node, from infrastructure preparation to Hydra Hub integration, is produced.

Evidence of Completion

• Detailed report on server infrastructure specifications and Hydra node configuration.

• Link or screenshot of the dashboard showing the provider node connected and allocated to a consumer.

• Video demonstration of a consumer using the node to create and run a Hydra Head.

• System logs and performance reports from the testing period.

• Confirmation from at least three consumers who successfully used the node for dApp testing.

• Public announcement on the Cardano/Hydra community introducing Hydra Hub’s first provider node.

Delivery Month

2

Cost

30000

Progress

60 %

Milestone Title

Payment Integration

Milestone Outputs

This milestone aims to implement a transparent payment mechanism for Hydra node usage fees and record payment/on-chain data. Tasks include:

• Developing a payment smart contract on Cardano, allowing consumers to pay fees in ADA (or supported tokens).
• Integrating the smart contract with the Hydra Hub system to ensure every payment transaction is recorded and reconciled automatically.
• Updating the dashboard to display payment history, fee status, and remaining node usage time for consumers.
• Implementing an automatic service suspension mechanism when consumers fail to pay or when usage time expires.
• Testing transactions with various scenarios: on-time payment, late payment, underpayment, and overpayment.

Acceptance Criteria

• Consumers can pay usage fees directly from their Cardano wallet.
• Payment transactions are recorded on-chain and instantly updated on the dashboard.
• Consumers can view payment history and service status in the portal.
• When payment is missing or expired, the system automatically revokes node usage rights.
• The entire payment and service control process runs fully automatically, without manual intervention.
• A payment integration guide is completed for future phases.

Evidence of Completion

• Link to the payment smart contract on Cardano testnet/mainnet.
• Video demonstration of the payment process and service status updates.
• Screenshots of the dashboard showing payment history and service status.
• Test report covering successful/failed transactions and on-chain reconciliation.
• On-chain statistics proving that at least three consumers have paid and used the service successfully.

Delivery Month

2

Cost

30000

Progress

90 %

Milestone Title

Final Project Reporting

Milestone Outputs

This milestone aims to summarize the entire implementation phase, evaluate outcomes, and share knowledge with the community. Includes:

• Project Close-Out Report in Catalyst’s required format, detailing progress, results, challenges, and lessons learned.
• Recap video presenting the development and deployment process of Hydra Hub Phase I, with real-world demo footage.
• Technical documentation and articles sharing experiences and contributions with the Hydra community, including technical analysis, encountered issues, and implemented solutions.
• Public release of all source code, deployment guides, and related documentation.

Acceptance Criteria

• The full project report is submitted to and acknowledged by Catalyst.
• The recap video is published on Cardano/Hydra community channels.
• Technical documentation is shared on GitHub, Hydra forums, and social media channels.
• All source code from Phase I is released under the MIT license.
• Positive community feedback is received, along with suggestions for improvement in future phases.

Evidence of Completion

• Link to the final report on the Catalyst platform.
• Link to the public recap video.
• Link to the published article or technical documentation.
• GitHub link containing the source code, guides, and related documentation.
• Screenshots of community feedback or metrics showing engagement with the shared content.

Delivery Month

1

Cost

10000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Total Proposed Budget for this Development Roadmap: 100,000 ADA

Cost Breakdown by Milestone & Acceptance Criteria

Milestone 1 – Hydra Hub Core (Consumer Portal & Admin)

Budget: 30,000 ADA

Scope & Basis:

• UI/UX (research, wireframe, prototype)
• Frontend (portal + dashboard)
• Backend/API development
• Authentication & Role-Based Access Control (RBAC)
• Testing & QA

Deliverables & Acceptance:

• Interactive prototype + basic design system.
• Functional Portal & Admin (MVP) with login/logout and role management.
• Documented API (OpenAPI/Swagger), 70% test coverage, passing CI pipeline.
• Public demo + deployment guide.

Success Metrics: MVP operational; API read <400ms for 95th percentile; ≥99% unit test pass rate.

Milestone 2 – Single Provider Node Setup & Integration

Budget: 30,000 ADA

Scope & Basis:

• Infrastructure (12 months hosting + monitoring)
• Hydra Node installation & configuration
• Integration with Hydra Hub
• Monitoring & alerting system (Telemetry, Alerting)
• User Acceptance Testing (UAT) with early adopters

Deliverables & Acceptance:

• One provider node operating 24/7 with complete monitoring (logs/metrics/alerts).
• IaC deployment process (Terraform/Ansible) + incident response runbook.
• UAT report: test scenarios, results, resolved issues.

Success Metrics: Uptime ≥99%, new deployment time <30 minutes, MTTR <1 hour in simulation.

Milestone 3 – Payment Integration & On-chain Tracking

Budget: 20,000 ADA

Scope & Basis:

• Smart contract (payment handling, basic escrow, event tracking)
• Payment API & reconciliation dashboard integration
• Transaction testing & load simulation
• Security audit

Deliverables & Acceptance:

• Smart contract (source code, tests, deployment scripts).
• On-chain tracking dashboard (transaction status, fees, reconciliation).
• Security audit report: no remaining Critical/High findings.

Success Metrics: Transaction success rate ≥99%; near real-time on-chain tracking (<5s update).

Milestone 4 – Final Reporting & Knowledge Sharing

Budget: 10,000 ADA

Scope & Basis:

• Project close-out report (lessons learned, KPIs, financials)
• Recap video & deployment guide
• Technical documentation / Community playbook (open-source)

Deliverables & Acceptance:

• Public report, published video, technical documentation, and community deployment cookbook.
• Post-mortem and roadmap for multi-provider expansion.

Contingency (10%) – 10,000 ADA

To be used for mandatory audit requirements, unexpected infrastructure cost spikes, or marketing initiatives such as sponsoring server resources to attract developers to test the platform. This could accelerate revenue generation, enabling the project to sustain and fund future roadmap phases as designed in the original architecture — without relying solely on treasury funding.

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

This project delivers high value to the Cardano ecosystem for the following reasons:

• Immediate Utility for Developers – By providing ready-to-use Hydra infrastructure with an easy-to-use portal and admin system, we remove the high technical and cost barriers that currently slow Hydra adoption. This enables more dApps to test and deploy on Hydra faster.

• Cost Efficiency – The centralized Phase I model leverages a single provider node to minimize initial infrastructure costs while still offering the full Hydra experience to developers. This ensures that every ADA spent directly supports development, testing, and validation of the model.

• Scalable Foundation – All components are built with future decentralization in mind, meaning the investment in this phase directly contributes to a sustainable, community-driven Hydra Hub in later phases without needing to rebuild core systems.

• Open Source Contribution – 100% of the code, documentation, and deployment guides will be released under the MIT license, ensuring transparency, reusability, and potential adoption by other projects, amplifying the value of the Catalyst investment.

• Knowledge Sharing – Beyond the platform, the project will deliver technical insights, reports, and a recap video, enabling the Cardano/Hydra community to learn from our experience, avoid pitfalls, and accelerate innovation.

• Long-term ROI – By reducing barriers to entry and accelerating Hydra adoption, this project will help attract more developers, projects, and users to Cardano, strengthening the network effect and creating compounding value over time.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes