Hydrated Treasury Report

4mos ago

18 Comments

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AI Summary

Hydrated Treasury Report

After 18 months of Omnipool operation I am today presenting to you an updated Treasury report - detailing Hydration POL and making some recommendations wrt next steps.

Before updating where we currently stand, it's worth reviewing our actions to date:

22,473,287.33 DAI accumulated as Protocol Owned Liquidity during the Hydration LBP in March 2021
5,000,000 DAI set aside to fund development of Hydration for 2 years
495,000 DAI paid to a whitehat & immunefi for the discovery of a critical vulnerability in Omnipool
The remaining 16,978,287.33 DAI was approved for diversification & partial deployment into the Omnipool through multiple diversification referenda - Q1 & Q2+ proposals

So where are we now?

TLDR; Hydration POL is currently valued at ~$24,540,000

// this is excluding HDX sitting in the Treasury outside of those that were purchased with 1M POL DAI using DCA.

A full breakdown of these assets and where they are deployed can be found here.

POL Highlights

17.47 WBTC (~$1.2M) in the Treasury
309.16 WETH (~$1M) in the Treasury
8,267.43 H2O (~$282K) in the Treasury
239K USDT (native) in the Treasury
~242K DOT ($1.4M) equivalent value held by protocol in Omnipool
3.28M DAI currently unallocated on the Hydration Council multisig

Proposed Actions

Deposit all 17.47 WBTC into the Hydration Money Market & as potential collateral for HOLLAR
Swap 309.16 WETH (MRL) for the Snowbridge equivalent and deposit in the Omnipool - (Snapshot approved here)
DCA 8,267.43 H2O into HDX to return that value to HDX holders - to be distributed later to HDX stakers
Withdraw all POL DOT positions from Omnipool due to significant liquidity depth - with 50% to be staked and 50% to be deposited into the Hydration Money Market
Swap 0.52 iBTC for HDX - to be distributed later to HDX stakers
Swap 1M unallocated DAI to sDAI (7% APR) with the intention to deposit it into the Omnipool to enable Yield DCA strategy with stablecoins
Swap 1M unallocated DAI to sUSDe (11% APR) with the intention to deposit it into the Omnipool to enable Yield DCA strategy with stablecoins
Swap remaining 1.28M unallocated sDAI - to remain in the Council-controlled multisig generating yield until a suitable allocation is agreed
Authorize the Hydration Council to swap the remaining 1.25M DAI allocated for protocol development to sDAI - accruing yield at 7% APR

This discussion will remain live for 1 week, before feedback is collected and an updated proposal is submitted on-chain for approval by HDX holders.

Edited

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Comments

7J44...FjfB

YES

7Kej...e8JW

Can we number the list instead of bullet points so it's easier to reference specific items?

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7Kej...e8JW

That poor neglected DAI, stuck tracking an inflationary government shitcoin. It's overdue for some interest bearing action.

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7LQF...hYnJ

I fully support it, good report and good initiatives. I especially support removing liquidity from dai which has no yield. However, regarding the point with the distribution of DOT from Omnipool. You propose to allocate 50% to stake, 50% to the money market. I would like us to not forget that Hydration is a defi protocol. Not a validator, not a Polkadot DAO, but a defi hub. I thought that everyone already understood that staking is an antagonist to everything that Hydration is trying to build. Staking is a degroid tool and we should not only discourage it, but also fight it.
Even Hydration staking itself is a challenge to all of existing the stakes mechanisms. By providing more complex, more profitable tools and features, we must, on the contrary, withdraw liquidity from validators, train and educate passive stakers.
In short, I am against not only adding new assets to staking on behalf of Hydration, but also against staking in general and it would be very cool if, as the market grows, we begin to reduce the existing DOT staking position.
So, as for the 50% of the dot in the stake, I'm sure that this 50% should be used to collateral Hollar.
And all staking DOT rewards should be converted into HDX monthly

Edited

0xa962...1D51

What are your thoughts on acquiring wSOL to add to the omnipool? Seems like wETH worked quite nicely for onboarding ETH people, maybe we could see something similar from the Solana eco

7L1j...F6TM

I am aye for all proposed actions.

7NzN...tBec

I really like what I see
-buyback of HDX

-put some stablecoins to work meanwhile is better holding until better user

- for now until we see how much will cost the coretime, I guess we need to still stake dot, but maybe yes even if is a little, put some of these rewards to stakers of HDX as well, idk 10% ?

7MBB...Qcef

May i know the process on how to add more coin into hydration?

All the proposal is aye, good i think

I would suggest to add more type of coin available to trade in hydration, i believe more famous coin available will attract more user to use hydration...

How often do we do this treasury report?

7Hhm...5pbZ

I support all the proposed actions! Like the direction where it's going.

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7Nru...rgez

Yes all of the proposed actions seem like a good idea. Also:

in addition to using the 17.47 WBTC currently in the treasury account, I would also recommend withdrawing the excess 18.52 WBTC in the iBTC/WBTC 2-Pool currently. That would bring the price of iBTC back to parity.
It would be interesting to swap some WETH for Lido staked wstETH so that could be used as another money market collateral in the future.

Edited

7Mdh...uNDv

All AYE. And I would recommend not rushing the HDX buyback and/or stretching it over a longer timeframe.

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The_Tomiest_Tom

Love it