HydraDX November Update

The Crowdloan Strategy & The Omnipool Worskshop

Dear Hydraheads,

After a crazy hot Kusummer, the world is now turning its attention towards the Polkadot parachain auctions which mark an epic milestone for our ecosystem. The first batch of slots will be auctioned starting from November 11th. 

This raises the inevitable question: Wen will the multi-headed liquidity monster make its crowdloan debut?

We are happy to announce that HydraDX will be entering the race for the second round of parachain auctions. Bidding for these slots will open on December 23rd, and the winning parachains will be onboarded as of March 11th 2022. The parachain lease has a duration until January 2024.

There are several compelling reasons for our decision to skip the initial round of auctions. Most importantly, the first parachains will get onboarded already in December, which is too early for us from a product perspective. Launching a multi-asset Omnipool in an empty, assetless parachain environment is a questionable undertaking.

The onboarding moment of the second batch of parachains (March 2022) provides a much more adequate timeline. It will allow us to come closer to a real-world implementation of the Omnipool which we would be able to deploy with the first available assets on Polkadot. It will also come at a time when we will have completed the delivery of several Basilisk products (LBP and XYK pools) in the Kusama network. We take the snek seriously (and so you should too).

Furthermore, participating in the second round of auctions will help us finetune our crowdloan campaign with the goal to secure a parachain slot at the lowest costs possible. Our experience with Basilisk shows that crowdloan caps play a crucial role in preventing overpaying. Sitting out the first auctions will give us a better picture of how much an early Polkadot parachain slot would cost, and we will adjust the cap of the HydraDX crowdloan accordingly.

HydraDX Omnipool Workshop Finishing

Over the past three months, we have been running our Omnipool workshop; a collab with TokenEngineering Academy and Blockscience. The workshop gave us the opportunity to introduce our AMM/Omnipool research to a group of aspiring token engineers. 

We enjoyed the cross-fertilization of ideas from participants with a very wide variety of backgrounds. The participants worked on 7 independent tracks, some of which directly applicable to the HydraDX Omnipool, including arbitrage modeling and dynamic fees design. Here is a complete list of the tracks:

1. Omnipool stress testing: "Toxic asset problem" and potential solutions

2. Omnipool as a possible solution for AMM-based ETF products

3. Impact of regulation on Omnipool: Alternate risk transfer instruments

4. Dynamic AMM fees to reduce impermanent loss

5. Identifying arbitrage signals

6. Bots: The next step in the evolution of AMMs?

7. Institutionalizing DeFi

If any of this caught your interest, please watch the recording of the event where the teams presented their findings.

Thanks to everyone who participated! We are looking forward to a continued collaboration which builds on top of the findings reached during the sessions. We will reach out to all participants to discuss rewards and how to move forwards!