Welcome the October edition of the HydraDX Monthly!
The absolute highlight of the past month is the proposal of the Polkadot Technical Fellowship to use the HydraDX Omnipool DCA feature for diversifying 469k DOT into USDT which will be used to pay for the Fellowship salaries.
The month of October also saw the launch of HydraDX Stableswap, further reinforcing our proposition as a cost-effective venue for your liquidity. Besides that, we celebrated the Great DOT Unlock with a humble Bonds campaign (which also marked Polkadot’s first native LBP), and we welcomed INTR to the Omnipool.
Finally, we will share with you a few podcasts with hydrated alpha and - of course - the dev update and a brief summary on the state of governance.
Polkadot Technical Fellowship ❤️ HydraDX DCA
The Technical Fellowship is a ranked on-chain collective in the Polkadot network which aims to embody the technical expertise over the protocol and its implementation (see their manifesto).
In late September we heard about plans to diversify 469k DOT from the Polkadot Treasury into USDT in order to pay out salaries to Fellowship members. The initial proposal was to create a bounty to effectively swap the amount over-the-counter with a 10% premium.
In our eyes this would have been quite a wasteful spend for DOT holders, and the premium would have been reaped by some whale anyway. As a Protocol that has been trustlessly diversifying its treasury into a basket of assets, we knew that there are better ways.
We reached out to the Technical Fellowship and invited them to consider using the HydraDX DCA to trustlessly diversify the DOT via the Omnipool instead. The rest is a love story that culminated in a Polkadot OpenGov Referendum now live for voting - pack your DOT bags and support us.
Here is an overview:
The DOT is sent from the Polkadot Treasury to the Polkadot sovereign account on the HydraDX parachain;
The transferred DOT is diversified into USDT over time by placing DCA orders into the HydraDX Omnipool;
The native USDT is periodically sent to the account of the Technical Fellowship on Asset Hub;
The whole operation is end-to-end trustless, non-custodial and fully decentralized, relying solely on cross-chain messaging (XCM) and the governance of both Protocols;
With total costs estimated at a mere 0.4% of the total amount, HydraDX proves itself once again as the frontrunner in the field of cost-effective DeFi.
Stableswap Live on HydraDX
In October, HydraDX launched Stableswap to enable more efficient swaps between tightly correlated stablecoin assets. This allows users to enjoy lower slippage with only a fraction of the liquidity deployed, and better trading fees.
The initial 4pool consists of USDC, DAI, USDT from Wormhole/Moonbeam, and native USDT. The liquidity from the 4pool is also available in HydraDX's Omnipool, meaning any other tradeable asset can tap into this stablecoin liquidity. HydraDX has deployed around $1.2M worth of its POL token into the 4pool as liquidity of last resort.
Things will get even more interesting with the planned 2pool of USDC-USDT (native) with a starting TVL of around $4M from POL. HydraDX's unique setup of Omnipool + 2pool + 4pool will unlock deep stablecoin liquidity for any trade, involving both native and bridged stables.
As the pioneering parachain on Polkadot to offer Stablepools, this launch unlocks further efficiencies and reinforces the position of the HydraDX Protocol as an ocean of liquidity for the Polkadot ecosystem.
Try the 💦 here: https://app.hydradx.io/trade/swap
The Great DOT Unlock
October 24th marked the highly anticipated unlocking of the first batch of Polkadot crowdloan DOT, amounting to around 113M DOT or 10% of the total supply. In anticipation of the event, HydraDX announced its first-ever Bonds campaign. The goal of the campaign was to accumulate more DOT into HydraDX’s protocol-owned liquidity.
The Bonds campaign was conducted via a 24-hour DOT/HDXb Liquidity Bootstrapping Pool (LBP) event starting on October 24th. The LBP allowed users to swap DOT for HDX bonds (HDXb) with a 1-year maturity.
In just 24 hours, HydraDX was able to accumulate over 19.5K DOT through this inaugural Bonds campaign. Furthermore, the Protocol managed to put two new features to the test: Bonds and Liquidity Bootstrapping Pools. The latter will soon serve the needs of young cryptoprojects in the eco which are looking to navigate price discovery while achieving a fair distribution of their tokens.
INTR joins the Omnipool
We are delighted to have listed INTR into our ever-growing Omnipool. INTR is the token of Interlay, which aims to enable trustless Bitcoin bridging and DeFI - BTC trading, lending, staking and more.
INTR was LPed into the Omnipool in a completely trustless and non-custodial manner, following democracy votes on the Interlay chain and on HydraDX.
Knowledge Centre
It was a busy month for @lolmcshizz who sat down with different teams within the space to share on the latest on HydraDX, check out the links below for the recordings:
Alice und Bob & Polkadot present #StakeDOT
BlockTalk Ep.6 | Polkadot Edition w/ Polkadot & DOT ecosystem teams
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.
Dev Updates
Stableswap Pools
SHIPPED ✅
Bonds
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.
XYK Pools
Description: Implementing XYK pallet from Basilisk onto HydraDX, allowing permissionless trading pool creation. There is growing demand for new assets to be listed on HydraDX, many of which do not yet meet the distribution and price discovery requirements to be added to the Omnipool - XYK pools can serve these early stage assets.
PR: https://github.com/galacticcouncil/HydraDX-node/pull/664
Notes:
XYK pallet deployed on mainnet.
UI implementation ongoing for launch soonTM 👀.
EVM Support
Description: Implementing the Frontier pallets by Moonbeam - to enable support for EVM and therefore MetaMask wallet and Ledger.
PR: https://github.com/galacticcouncil/HydraDX-node/pull/646
Notes:
Runtime implementation complete.
Pending upgrade to Polkadot v1.1.0.
UI implementation ongoing.
Other developments
Next-gen XCM UI
Utilising MRL to bridge Ethereum ERC-20s directly to HydraDX within our Cross-Chain UI
Support for cross-chain swaps (XCM Exchange use-case)
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
N/A
Passed
Ref #87 - Add INTR to Omnipool
Ref #85 - Launch bonds
Ref #84 - On-chain remark: Launch bonds
Ref #83 - Create 4-Pool and add to Omnipool
Ref #82 - On-chain remark (add INTR to Omnipool)
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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