This proposal will execute the following:

- Set TVL cap to $1,000,000
- Add 63.75 ETH to the Omnipool as POL
- Add 50,000 DAI to the Omnipool as POL
- Set ETH weight cap to 50%
- Adjust DAI weight cap to 50%
- Adjust DOT weight cap to 80%
- Adjust HDX weight cap to 9%

- Rescind HRMP channel request to Statemint due to alternative process being available (see proposal [here](https://polkadot.subsquare.io/post/7))
- Rename ETH in asset registry from Ether to Ethereum (via Wormhole)

proposalHash

Add ETH to Omnipool, TVL & Weight Cap Adjustments & HRMP Cancel

Based on [referendum #18](https://hydradx.subsquare.io/democracy/referendum/18) this proposal withdraws 63 ETH and 50k DAI from Wormhole bridge and deposits it into treasury. Funds are to be deposited by council to bridge in the transaction #7 from Ethereum treasury safe.

Bridge initial ETH liquidity and more DAI to the parachain treasury

It has been 11 days since we launched the Omnipool following our plan for a phased release which was proposed [here](https://hydradx.substack.com/p/hydrating-the-omnipool) and later [approved](https://hydradx.subsquare.io/democracy/referendum/18) by the HydraDX community. One of the reasons why we adopted this gradual approach is to monitor performance and tweak any parameters as we move forward and gain a better understanding of how the Omnipool behaves in the wild.

This proposal is to adjust one of the Omnipool parameters. As you’ll understand from our blog “[Feeding every Hydrahead](https://hydradx.substack.com/p/feeding-every-hydrahead)”, there are LRNA stabilization mechanisms which help reduce IL for LPs over time, one of which is described in the blog as “ *Whenever LRNA is sold back to the Omnipool, the accumulated Protocol Fee would be activated to burn LRNA until ~2x the amount of LRNA sold back is burnt. This provides an interesting game theory dynamic as the Protocol Fee helps support the price of LRNA.* ”

After reviewing the early performance of the Omnipool, we came to the conclusion that the so-called HubAssetImbalance is currently configured to burn too much LRNA. Against this background, we would like to propose the following two actions:

- Tweak the parameters in a way that reduces the amount of LRNA burned by the imbalance mechanism, thereby allowing it to operate closer to our conception;

- Reset the current HubAssetImbalance by setting it to zero.

**[Runtime upgrade to v15.1.1 release notes](https://github.com/galacticcouncil/HydraDX-node/releases/tag/v15.1.1)**

**Please note that adjusting the parameters of the LRNA imbalance mechanism and resetting the HubAssetImbalance will not have any negative impact on past trades or provided liquidity.**



- HydraDX launched Omnipool 11 days ago in a phased approach to monitor and adjust its performance.
- They want to adjust one of the Omnipool parameters related to LRNA stabilization mechanisms to reduce IL for LPs over time.
- The current HubAssetImbalance is burning too much LRNA, so they want to reduce the amount burned and reset it to zero.
- These changes will not affect past trades or provided liquidity.
- There is a new runtime upgrade to v15.1.1.

Proposal to Adjust the LRNA Imbalance Mechanism (Runtime upgrade to v15.1.1)

Send HRMP Channel Open Request to Phala

**This referendum, if passed, will place the following on-chain remark:**

*https://gateway.pinata.cloud/ipfs/QmaxqsF5ecSj6RSc48AYf9zZCXCntoAYGPLuHAnAhtWtYj*

---

**The on-chain remark links to an externally stored .md file with the following content, which is the output from two recent governance discussions https://hydradx.subsquare.io/post/33 https://hydradx.subsquare.io/post/34 :**

# POL Diversification and Deployment (Q1 2023)

This framework authorizes and mandates the HydraDX Council to diversify and/ or deploy up to 10.15M DAI of the HydraDX protocol owned liquidity (POL) during Q1 2023 as follows:

### ETH

- Swap up to 2.2M DAI into ETH using an Ethereum-based DEX;
- Bridge the amount to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
- Deploy the amount into the Omnipool.

### WBTC

- Swap up to 1.1M DAI into WBTC using an Ethereum-based DEX;
- Bridge the amount to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
- Deploy the amount into the Omnipool.

### iBTC

- Explore mechanisms to swap up to 250k DAI into iBTC. The mechanism will be voted by the community prior to execution;
- Deploy the amount into the Omnipool.

### USDC (native)

- Explore mechanisms to swap up to 2.2M DAI into native USDC. The mechanism will be voted by the community prior to execution;
- Deploy the amount into the Omnipool.

### USDT (native)

- Explore mechanisms to swap up to 2.2M DAI into native USDT. The mechanism will be voted by the community prior to execution;
- Deploy the amount into the Omnipool.

### DAI

- Bridge up to 2.2M DAI to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
- Deploy the amount into the Omnipool.

---

## Non-DAI POL

### HDX

- Deploy up to $250k worth of HDX from the HydraDX Treasury into the Omnipool

---

The present framework has undergone a discussion on the governance forum of the HydraDX Protocol and has been approved in a general democratic vote by all holders of HDX.

- HydraDX is a protocol that plans to diversify and deploy its owned liquidity in Q1 2023.
- The plan includes swapping DAI into different cryptocurrencies like ETH, WBTC, iBTC, USDC, and USDT.
- The community will vote on the mechanisms to swap DAI into iBTC, USDC, and USDT.
- The plan also includes deploying HDX from the HydraDX Treasury into the Omnipool.
- The framework has been approved by all holders of HDX after a democratic vote.

POL Diversification and Deployment (Q1 2023)

This referendum, if approved, will **increase the Omnipool TVL Cap to $500,000** (currently set to $222,222)

Increase Omnipool TVL Cap to $500,000

release notes: https://github.com/galacticcouncil/HydraDX-node/releases/tag/v15.1.0

Upgrade runtime to the v15.1

We didn't fast track in time and need to cancel this to be able to launch more quickly

refIndex

Cancel referendum 14 - motion #40

Following the motion #10, this proposal actually initializes Omnipool with first 3 tokens: HDX, DAI and DOT

This referenda will be fast-tracked to meet the 2:22pm UTC scheduled time.

Launch Omnipool faster

Cancel referendum -> Wrong treshold - motion #38

Following the motion #10, this proposal actually initializes Omnipool with first 3 tokens: HDX, DAI and DOT

Launch Omnipool

Following the motion #11 this executes transfer of 50010 DAI from the Wormhole bridge on Acala, after the same amount is deposited on Ethereum side by treasury multisig (transaction #4).

Bridge initial DAI liquidity to the parachain treasury

release notes: https://github.com/galacticcouncil/HydraDX-node/releases/tag/v15.0.0

Upgrade runtime to the v15

This referendum, if approved, will place the following on-chain remark:

*https://ipfs.io/ipfs/QmUsNVyhB78FHSXY4BwTMHGg6xU2fYryLj5BAHqbvKjsmM?filename=contribute.md*

The document details an updated treasury spending framework for the HydraDX Council to adhere to as we move closer to launch of the Omnipool. This framework includes a bug bounty programme using Immunefi.

Contribute and Get Rewarded

Referendum to place the following on-chain remark:

https://ipfs.io/ipfs/QmZ9BtVQTggvMyJE5eLEc6tfisG2n82r4GZQ7okxnevxjY?filename=omnipool_parameters.md

This link lays out the initial Omnipool parameters as discussed in https://hydradx.subsquare.io/post/4 and approval of the referendum agrees to initialise the Omnipool using these parameters.

Omnipool Initial Parameters

Correct motion to be resubmitted - please disregard council motion #32

Incorrect submission - please disregard

Second attempt due to previously failed tx.

Test transfer of 1 DAI from HydraDX Sovereign account on Acala to Omnipool account on HydraDX


Move 1 DAI from HydraDX Sovereign account on Acala [Take 2]

This motion will add Chaos DAO (`7PAE9wNX6GohpdbNHtu7XYEp3oq5GiXbNAGBm6mXin1AYn3y`) to the set of active collators on the HydraDX parachain.

Add Chaos DAO to the active set of collators

Test transfer of 1 DAI from HydraDX Sovereign account on Acala to Omnipool account on HydraDX

Move 1 DAI from HydraDX Sovereign account on Acala

As our community collator set is very stable, there is no need keep 5 collators from Galactic Council in the set. We'll keep just one of them mostly for testing & debugging purposes.

Remove redundant Galactic Council collators from set

This referendum, if approved, will place the following on-chain remark:

**"Reduce the allocation for Growth (LM rewards, bonds etc.) from 5,295,662,772 HDX to 1,795,662,772 HDX, resulting in a reduction of the total HDX supply cap from 10 Billion HDX to 6.5 Billion HDX."**

Full rationale available at https://hydradx.substack.com/p/hydrating-through-the-winter

HDX Supply Reduction

Initial HRMP channel opening request for each of:

- Astar
- Moonbeam
- Interlay

Request HRMP channels with Astar, Moonbeam & Interlay

Basilisk crowdloan contributors who used Bifrost to participate are unable to receive their HDX rewards due to them being in Bifrost's sovereign account - if approved, this will force transfer the rewards from their sovereign account to the individual contributors.

On-chain remark of the same preimage hash: https://bifrost-kusama.subscan.io/referenda/136?tab=proposal_preimage

Redistribution of Basilisk Crowdloan HDX rewards [Bifrost]

Release notes: https://github.com/galacticcouncil/HydraDX-node/releases/tag/v14.0.0

Upgrade runtime to the v14

This motion proposes the XCM calls to accept the HRMP channel from Acala and open it on their end.



Council Motions