Road to Omnipool
Dear Hydraheads,
As we drive down the windy road leading to the Omnipool, our destination appears in sight. Not long from now, the multi-headed monster will find its new home: Sustainable, capital-efficient liquidity unrivaled by any AMM.
With runtime development fully completed (also audited) and the front-end part coming into shape, we are almost ready to start the countdown. Before we do so, however, there are a few final steps which we - together as a tribe - must make.
This post summarizes the remaining actions which need to take place, with special attention to the parts where we need your help. In the upcoming days and weeks, we will be launching a series of referenda which will prepare the ground for the Omnipool. We count on your active participation, you can learn more about democracy and how to vote in our docs.
Here is an overview of what you can expect in the upcoming weeks.
1/ HDX Unlock and Sudo Removal
As a first step, we need to unlock HDX transfers and remove the sudo superpowers of Galactic Council. To achieve this, the HydraDX Council has launched a motion. If approved, it will soon turn into a public referendum which can be voted upon by every Hydrahead.
You can see all active referenda which are open for voting on our democracy portal.
2/ HDX Supply Reduction
A lot has changed since we first announced the HDX tokenomics. As we dug deeper into the Omnipool, we gained valuable insights which allowed us to design our AMM in a sustainable way making us less dependent on spending protocol tokens for liquidity incentives.
Looking at the current state of affairs, we no longer believe it is necessary to reserve ~55% of the total HDX supply for Liquidity Mining rewards. Accordingly, we would like to propose to decrease the share of LM rewards and accordingly the max supply cap of HDX. More information will be shared in a separate blog post.
3/ Spending Framework
Another referendum will soon go live, the subject of which is to introduce a spending framework for the HydraDX Protocol. Besides authorizing the Council to spend treasury funds up to a certain limit, it will also allow us to launch our bug bounty program on Immunefi which is an important component of our security strategy. The spending framework will cover limited spending of both HDX and DAI, as some of the necessary integrations require stablecoin payments.
4/ Initial Omnipool Parameters
While the Omnipool liquidity will eventually end up being deep enough to accommodate any sizable aquatic mammal, our plan is to start slow and smol. We would suggest launching the Omnipool with a few reliable assets and limited liquidity, both of which will be later expanded.
Our proposal is to initiate the Omnipool with a TVL of $100,000 spread among a basket of 3 assets:
50% DAI (provided from POL / LBP funds);
40% DOT (provided by Galactic Council);
10% HDX (provided by the HydraDX Treasury).
The exact amount of DOT will be determined by the last known market price (7d average). For HDX, the last known price currently is $0.0267 (LBP price after tripling).
We would like to emphasize that initially we are using a very limited amount of liquidity mainly to kickstart the Omnipool. Once this has happened, we will collectively decide on how to further utilize the POL for expanding the Omnipool liquidity both in terms of size and diversification.
Before we launch the referendum for initiating the Omnipool with the suggested setup, we would like to collect the feedback and/or any alternative suggestions you may have. For this purpose, we have opened a discussion thread where you can share your thoughts on these and other important parameters which will be used for kickstarting the Omnipool.
5/ LBP Funds Distribution
The HydraDX LBP event from March 2021 helped us raise 22,473,287.33 DAI of protocol owned liquidity (POL) which has been held by Galactic Council together with 434,500 DAI of generated trading fees. In the upcoming days, we will be distributing these funds.
The full amount of POL will be transferred to a Gnosis multisig account controlled by the HydraDX Council. The LBP fees will be moved to another account of Galactic Council (which provided the initial liquidity for the LBP). The LBP fees will be used to improve the security of the Protocol. They will help cover the costs for the completed Omnipool security audit and also several other ongoing audits relating to liquidity positions and liquidity mining.
The HydraDX team cannot be more excited about the upcoming Omnipool launch.
Help us get there!
💧
You are scammers ) and will be I jail
MEGA SCAM !!!!!!!!!!