HydraDX Monthly - EOY 2x Edition 🦊
MetaMask and Ledger Support, Parachain Slot Extended, Isolated Pools Live, PHA in The Omnipool
Welcome the EOY double edition of the HydraDX Monthly - covering the months of November and December 2023.
The last two months saw a bunch of exciting developments for HydraDX. First and foremost, the HydraDX chain became compatible with the Ethereum Virtual Machine (EVM). This important milestone is worthy of celebration. The EVM integration marks the beginning of a closer cooperation between the HydraDX Protocol and the Ethereum ecosystem.
Starting immediately, users can trade native Polkadot assets and other bridged assets in the HydraDX Omnipool using their 0x accounts with MetaMask (incl. Ledger). In the close future, the EVM layer will help us integrate with other products from the Ethereum ecosystem such as DEX aggregators or tools which help DAOs manage their treasuries.
In other hot news, HydraDX won a second parachain slot on the Polkadot network. By doing so, the Protocol has acquired high-quality, secure blockspace for the upcoming 2 years.
Isolated Pools is a recently launched feature which also deserves a mention. These are XYK trading pools that live outside of the Omnipool. They offer a viable onboarding path for low-cap, young tokens which are looking for trustless market-making.
Wishing you a hydrated new year! 🍾
MetaMask and Ledger Support
The HydraDX chain is now compatible with the Ethereum Virtual Machine (EVM) after implementing the Frontier pallet. The most immediate benefit is that users are able to use their 0x accounts with MetaMask to interact with our chain. The support of MetaMask also unlocks the possibility to sign transactions using your Ledger hardware wallet.
In the beginning, the easiest way to start trading in the Omnipool with your 0x account is to onboard WETH bridged from Moonbeam using our XCM UI (check out the docs). Keep in mind that you will always need to have some WETH (Moonbeam) for transactions fees. Unfortunately, EVM compatibility comes with the limitation that we cannot support payment for txs in any asset like we do for our native Substrate runtime.
The interaction between the EVM layer and our Substrate runtime is achieved using precompiles. You should be able to perform nearly all actions using MetaMask, with the exception of participation in governance. We are in touch with the SubSquare team about adding MetaMask support to their governance platform.
In the longer run, we believe that the EVM support will serve as a gateway to the Ethereum ecosystem, giving a boost to inter-chain cooperation by enabling an array of integrations. For example, case-specific precompiles can support DEX aggregators such as 1inch. If we were to enable solidity smart contracts on HydraDX, deploying a fork of AAVE would be a relatively easy task. The possibilities are endless (and hydrated).
Despite being technically possible, the HydraDX chain will initially not support the deployment of solidity smart contracts. When the right moment comes, It will be up to the HydraDX Governance to enable and/or deploy the first smart contracts.
Give it a try 🦊
https://docs.hydradx.io/trade_metamask
https://explorer.evm.hydration.cloud/
Parachain Slot Extended
We are thrilled to share that HydraDX has won Polkadot Parachain Auction #56. This has helped us extend our parachain slot until November 2025, giving us sufficient time to safely migrate to Coretime and Polkadot 2.0.
We managed to secure the slot against a bid of only 30k DOT, making it one of the cheapest slots on the Polkadot network up-to-date. The bid was placed using Protocol funds (see Ref #90 which authorized up to 100k DOT) that were controlled by a proxy multisig.
Isolated Pools Live
We are also happy to share that the first Isolated Pool SUB-DOT went live on HydraDX! This also marks the initial listing of Subsocial’s token.
Isolated Pools are regular XYK AMMs which live outside of the Omnipool. This means that tokens in these pools are not paired with our pool token LRNA and not directly exposed to the assets in the Omnipool. However, with our advanced UI and router the users will barely notice it, as they are still able to swap it against any other asset which is in the Omnipool or in Stableswap.
Isolated Pools are especially useful for young assets and initial price discovery. Due to their inherent lack of price stability, the listing of such assets is not supported by the Omnipool. Isolated Pools are here to fill the gap by providing a cost-efficient, trustless avenue for market-making.
With the upcoming permissionless asset registry, anyone will be able to create an Isolated Pool for any asset. Once a given asset has reached a point of reasonable maturity, the HydraDX Governance can consider including it into the Omnipool.
PHA in the Omnipool
On December 29th, we welcomed PHA into the Omnipool. The initial liquidity of 1,000,000 PHA liquidity was provided trustlessly by the Treasury of Phala Network, after being subject to a governance vote which was initiated by members within our communities.
Phala Network provides trustless and decentralized off-chain compute infrastructure. Their novel product called Phat Contracts allows devs to easily build offchain programs which they can use in their dapps.
Other Updates
The referendum which will help the Polkadot treasury diversify 469k DOT using the HydraDX Omnipool to help cover Fellowship salaries has passed with overwhelming support. As a result, the Polkadot Protocol has placed a trustless DCA order on HydraDX which will accumulate 250 USDT every ~36min. The funds are sent periodically to the Fellowship account on Asset Hub in chunks of 5000 USDT.
In other news, you may have noticed that our app is becoming quicker and more responsive. This is the result of several performance improvements which help our frontend deal with chain data more efficiently. This is an ongoing process, and there is more to come.
A selection of monthly development updates on various upcoming features and partnerships.
Partnerships / Business Integrations / Operations
Polkadot Treasury LPs (aka. Hydrate Your Treasury)
Partnering with Polkadot parachains to deploy part of their token supply into the HydraDX Omnipool as an LP. This offers other protocols a cost-effective strategy for market making while helping strengthen the position of the HydraDX Protocol as the go-to ocean of liquidity in Polkadot.
Onboarded Zeitgeist, ASTAR, Centrifuge, Bifrost, Moonbeam, Interlay, Subsocial, Phala.
Product Features / Cross-chain / Infrastructure
Isolated Pools (XYK)
SHIPPED ✅
Stats page
SHIPPED ✅
EVM Support
SHIPPED ✅
XCM UI V2 + MetaMask support
SHIPPED ✅
LBP
Description: Implementing LBP pallet from Basilisk onto HydraDX, allowing price discovery on HydraDX for the entire Polkadot ecosystem. The LBP pallet will also be used as the initial distribution method for HDX Bonds.
Pallet: https://github.com/galacticcouncil/HydraDX-node/tree/master/pallets/lbp
Notes:
LBP pallet deployed on mainnet & used for Bonds event.
Minor changes to UI required for specific LBP page on HydraDX app.
Design & UI implementation ongoing.
Permissionless Asset Registry
Description: Allowing new assets to be added to the Asset Registry without requiring them to be added through governance - a key component to unlocking maximum degeneracy on Polkadot.
PR: https://github.com/galacticcouncil/HydraDX-node/pull/655; https://github.com/galacticcouncil/Basilisk-node/pull/647
Notes:
Runtime implementation complete, review ongoing.
Will initially launch on Basilisk for testing of permissionless asset registry combined with XYK pools.
Design and UI implementation pending.
Referral Fees
Description: Allows creation of a referral code for an account to share with their supporters/ followers - if these are applied to a users’ wallet then a portion of trading fees from their trades are accrued for the account that referred them. The user also receives a portion of fees from their trades.
PR: https://github.com/galacticcouncil/HydraDX-node/pull/708
Notes:
Runtime implementation complete, reviews & final tests ongoing.
UI implementation near completion.
Other developments
Next-gen XCM UI V3
inclusion of direct Ethereum <> HydraDX bridge - ongoing
Upgrade to Polkadot v1.1.0 https://github.com/galacticcouncil/HydraDX-node/pull/691
Governance Square
A selection of recent governance proposals. Proposals where vote totals/controversy are not discussed can generally be assumed to have passed overwhelmingly (>90% non-abstaining vote*).*
Proposals/ In Discussion
Ref #101 - Authorize upgrade to release v21.2
Passed
Ref #99 - Authorize upgrade to v21.1.1
Ref #98 - DCA 150,000 DAI for DOT
Ref #96 - Update tradability & OTC orders
Ref #93 - Remove 4 assets from Omnipool
Ref #92 - Upgrade runtime to release v21.0.0
Ref #91 - On-chain remark (add PHA to Omnipool)
Ref #90 - Transfer 100,000 DOT for parachain auction bidding
HydraDX Omnipool Basics
About HydraDX
HydraDX is a next-gen DeFi protocol which is designed to bring an ocean of liquidity to Polkadot. Our tool for the job the HydraDX Omnipool - an innovative Automated Market Maker (AMM) which unlocks unparalleled efficiencies by combining all assets in a single trading pool. Besides more efficient trading, the Omnipool design enables single-sided LPing. Visit the HydraDX website to find out more.
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