- HyroTrader launched Hyro Protocol, an on-chain prop trading system opn Solana settling in USDC, aiming to make prop firm operations fully verifiable on-chain.
- The protocol uses Challenge and Direct Vaults governed by smart contracts, letting traders and liquidity providers verify every payout and rule on a block explorer.
- HyroTrader, which has funded over 1,700 traders and paid out over $5 million, is launching in response to a wave of prop firm collapses.
HyroTrader has announced that it is launching Hyro Protocol, an on-chain proprietary (prop) trading protocol built on Solana that settles in USDC.
The Prague-based firm first made the announcement on July 8, stating that it is a response to the funded trading industry’s central credibility problem.
Historically, traders and capital providers have had no way to independently verify what a prop firm’s dashboard tells them. Hyro Protocol is designed to remove that vagueness, and it says that it has made every key protocol event verifiable on-chain.
HyroTrader’s CEO Samuel Drnda said, “Most prop firms still run on closed systems where rules can change mid-evaluation and payouts happen behind closed doors.”
What is Hyro Protocol actually building?
The protocol has designed what it calls a vault model, which is divided into two: the Challenge Vaults and the Direct Vaults. It uses capital pools governed by smart contract rules, and traders building a track record can prove themselves through Challenge Vaults, while those with an established history can apply to manage liquidity provider capital directly through Direct Vaults.
It’s the same hybrid logic the firm has run since 2023, when it became the first crypto prop firm to route funded traders directly to their own Bybit accounts via API rather than pricing trades internally. According to the protocol, “Funded traders access more than 700 USDT perpetual pairs on live order books.”
How big is prop trading’s trust problem?
An estimated 80 to 100 proprietary trading firms shut down between 2024 and 2025, which is roughly 13 to 14% of the global market. It has since been called the industry’s worst collapse, and most ran on a structure where new challenge fees funded payouts to earlier traders, a model that fails the moment growth slows.
On-chain prop trading may succeed where others have failed, and that is Hyro Protocol’s goal. This time around, it is putting transparency on the table to attract traders.
The novelty of Hyro Protocol is the scope it covers. It puts the entire vault and accounting layer on-chain rather than just the payout record, which sets it apart from a field that already includes a payout-tracking service that tracks on-chain payout data from 43 prop firms using an Arbitrum blockchain integration.
What else has HyroTrader’s parent firm built?
HyroTrader says it has funded more than 1,700 traders and paid out over $5 million since introducing exchange-connected accounts in 2023, with funded capital scaling to $1 million and profit splits up to 90%.
Drnda founded an earlier version of the business, HyroTrade, in 2020 before relaunching as HyroTrader by 2024, when the platform had grown to over 30,000 registered traders with 30% month-over-month growth.
Drna added that “Hyro Protocol replaces trust with verification. Traders own their track records, LPs can check every number on a block explorer, and capital scales with performance instead of one company’s balance sheet.”
The firm was also named Best Prop Trading Firm at the CoinGape Web3 Innovation Awards 2026 this month, decided by an independent judging panel featuring representatives from Polygon Labs, Visa, Beldex, Sharplink and Liminal Custody.
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Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
