#71·POL Diversification and Deployment (Q2+ 2023)

This referendum, if passed, will place the following on-chain remark:
https://gateway.pinata.cloud/ipfs/QmXxDgaDXCNs1Fk6X1n9EZNfgfA7Zz7GDqsUoYB6VKMcHF

The on-chain remark links to an externally stored .md file with the following content, which is the output from the recent governance discussion: https://hydradx.subsquare.io/post/69

POL Diversification and Deployment (Q2+ 2023)

This framework authorizes and mandates the HydraDX Council to diversify and/or deploy up to 4.8M DAI of the HydraDX protocol owned liquidity (POL) during and beyond Q2 2023 as follows:

Buy 1,000,000 DAI worth of HDX

• Bridge 1,000,000 DAI to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
• Initiate DCA (Dollar Cost Average) orders to gradually swap a total of 1,000,000 DAI for HDX in the Omnipool;
• Future use of the accumulated HDX to be discussed.

Buy 3,330,000 DAI worth of DOT (incl. LSDs)

• Bridge 3,330,000 DAI to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
• Initiate DCA (Dollar Cost Average) orders to gradually swap a total of 3,330,000 DAI for DOT in the Omnipool;
• Accumulated DOT to be split between the following use cases:
  • At least 1M DAI equivalent deployed to Omnipool as LP;
  • At least 1M DAI equivalent swapped for DOT LSDs (options to be explored) and to be deployed to the Omnipool as LP;
  • The remainder to be reserved for the next HydraDX parachain slot. Once the slot is secured, a discussion can decide how to utilize any remaining DOT.

Buy 500,000 DAI worth of iBTC

• Bridge 500,000 DAI to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
• Initiate DCA (Dollar Cost Average) orders to gradually swap a total of 500,000 DAI for iBTC in the Omnipool;
• Deploy the accumulated iBTC 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.