#115·On-chain remark: Launch bonds

Ahead of THE GREAT DOT UNLOCK happening on October 24th - this proposal aims to coincide the launch of HydraDX Bonds with this crucial event. The first HydraDX Bond event will accumulate DOT as protocol owned liquidity (POL) - targeting DOT that is unlocking from the first batch of crowdloans.

As with any new Omnipool token launch, price sensitivity requires that Bonds creation and launch of LBP event are fast-tracked through governance - this proposal seeks approval from HDX holders for fast-tracking the launch referendum, by placing the following on-chain remark:

Fast-track referendum for Bonds creation & launch of LBP event. 50M HDX bonds, maturity 24-10-2024, starting price +22% premium to spot when proposal is on-chain, accumulating DOT over a 24h event, starting weights HDX 85 DOT 15, ending weights HDX 40 DOT 60, 2% swap fee.

The proposed parameters are:

• Mint 50,000,000 HDX bonds with maturity at 2:22:22 on 24th October 2024 (~1 year) using HDX from the Treasury (to be replaced at a later date from the growth portion of HDX supply)
• Distribute those HDX bonds to accumulate DOT protocol owned liquidity (POL) via an LBP
• Initial DOT liquidity to seed LBP to be taken from Treasury and returned when the event concludes
• Start trading at +22% premium to the spot price of HDX at the time that the referendum is put on-chain
• LBP to run for 24 hours
• LBP starting weights set to 85% HDX Bonds 15% DOT
• LBP finishing weights set to 40% HDX Bonds 60% DOT
• LBP swap fee (fee applied when selling HDX bonds back into LBP) set to 2%

You can read more about HydraDX Bonds in our docs as well as learning morning about LBP (Liquidity bootstrapping) here.