Parachain slot renewal

Hello Hydrators!

As most of you will be aware, our first parachain slot will come to an end at the beginning of January.

We agreed as a community as part of referendum #43 that we could diversify up to 1M DAI into DOT in preparation for bidding on a second parachain slot (approximately 216,000 DOT at current prices) - the fortunate news is that currently slots are generally going for <70,000 DOT (with the exception of Crowdloans which typically overpay); so whilst DCAs for DOT are ongoing, we should have sufficient DOT already in the Treasury to cover this requirement.

Intergalactic Council along the with HydraDX Council have looked at and discussed a range of methods for executing these auctions bids in the most permissionless yet dynamic way possible - with the intention to reduce counterparty risk but also not overpay for the slot. The best method to achieve these goals is as follows:

• Create a pure proxy on Polkadot which we will transfer (through governance) e.g. 100,000 DOT from HydraDX Treasury
• Assign parachain 2034 (HydraDX) as ANY PROXY
• Assign a 2/6 multisig of the following HydraDX council members as AUCTION PROXY:
  • Jak-Pan
  • mrq
  • lolmcshizz
  • Leemo
  • Jose Crypto
  • Dakauaiguy
• The multisig would then be able to bid on upcoming auctions from those DOT, without having any capability to move the funds

I have created the following schema to demonstrate the setup.

Before taking the next steps on-chain, I wanted to have a discussion to answer any questions that may arise around this process. The intention will then be to have everything ready to begin bidding for a slot from auction #55 onwards (once Parallel have overpaid for #54).