Hydro Finance is a hybrid Automated Market Maker (AMM) and Decentralized Autonomous Organization (DAO) built on Secret Network. Hydro Finance incorporates slippage-free 1:1 trades alongside the traditional AMM model to leverage staking derivatives as base pairs. The use of staking derivatives as primary liquidity enables staking rewards to be treated as revenue for the Hydro DAO. The slippagefree pools allow for easy conversion from the derivative to the native assets, as well as cheap and privacy preserving multi-chain stable swaps.