- This proposal changes how much vDOT and DOT can be supplied or borrowed.
- vDOT supply cap increases from 222,222 to 333,333.
- DOT supply cap increases from 600,000 to 800,000.
- DOT borrow cap increases from 400,000 to 500,000.
- The loan-to-value (LTV) ratio for DOT increases from 70% to 75%.
- The liquidation threshold (LT) for DOT increases from 75% to 80%.
- The reserve factor for all assets increases from 10% to 20%.
- These changes are made through a series of technical calls.

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Increase vDOT supply cap & other parameter changes

- This proposal wants to move 250,000 USDC from the Hydration Treasury to a special account managed by 5 people.
- The money will be used to buy SOL and SUI coins at a good price.
- HDX holders voted to buy 150,000 USDC worth of SOL and 100,000 USDC worth of SUI.
- Using a multisig (a group of 5 people) helps get a better price than waiting for a long time.
- The goal is to buy SOL and SUI close to the market price, not too high or too low.
- The multisig will try to buy SOL at 0-2% above the market price to get the best deal.

Transfer 250,000 USDC for SOL & SUI OTC

- Proposal transfers 56,018 vDOT and 14,743,050 HDX to Polkadot Hydration farms.
- This will extend the farms' operation by about 1 month.
- Aim is to allow time for discussions before Phase 3.
- Funds come from previous allocations, not new costs.
- Phase 1 reference: [Link](https://hydration.subsquare.io/democracy/referenda/154).
- Phase 2 reference: [Link](https://hydration.subsquare.io/democracy/referenda/178).
- This transfer reduces the amount for Phase 4.

1 month Top-up for Polkadot Hydration farms

- Upgrade to runtime `v33.0.1` (hydradx/276).
- Enable LM claim rewards.
- Add OpenGov features.
- Include OpenGov staking and voting.
- Support legacy votes in staking.
- Add on-chain liquidation.
- Fix OpenGov conviction pallet.
- Refactor referrals and slippage.

Authorize runtime upgrade to v33.0.01

This proposal suggests:

- Raising the borrow cap for USDT and USDC from 670,000 to 1,111,111.
- Withdrawing 2,000,000 stablepool shares from the Treasury.
- Depositing 1,000,000 USDT and 1,000,000 USDC into a lending feature.
- It aims to add more stablecoin liquidity to the lending and borrowing system.
- The idea has been discussed in a forum.

Lend 1M USDT & 1M USDC

- The proposal suggests sending 60 DAI from the Hydration Treasury to a multisig wallet controlled by the Hydration council.
- This is a test before a larger action.
- A future referendum will withdraw all DAI from a 4-pool and send it to the same multisig.
- The council will convert the DAI to USDS.
- The USDS will then be sent back to the Hydration Treasury.
- A final referendum will create a new stablepool using the USDS.

Send 60 DAI to council-controlled multisig

### Proposal Summary

- **Proposal**: Revert the Liquidity Mining claim function to its previous state before the v32.0.0 runtime release.
- **Purpose**: Address user feedback that the new mechanism is overly complex and causes friction.
- **Action**: If approved, the Intergalactic team will create a new runtime release to revert the changes.
- **Reason**: The new mechanism, though well-intentioned, has not met user expectations.
- **Outcome**: Simplifies the Liquidity Mining claim process for users.
- **Decision**: Requires approval from token holders.
- **Next Steps**: Preparation of a runtime release if the proposal is approved.

Revert the Liquidity Mining claim function

Add AAVE to Omnipool

- The proposal aims to stop yield farming for WBTC/iBTC 2-Pool to address issues with WBTC custody and imbalance.
- WBTC's custody was moved to BitGo, causing uncertainty.
- The WBTC/iBTC pool is imbalanced, with 61.2% WBTC and 38.7% iBTC.
- New iBTC cannot be minted due to lack of capacity.
- Most of the iBTC supply is on Hydration, making it disproportionate.
- Removing incentives is expected to help rebalance the pool and restore market parity.
- Hydration DAO should consider other BTC derivatives like cbBTC and tBTC.

Stop WBTC/ iBTC 2-Pool Yield Farms

Add LM accounts to non-dustable (MYTH/DOT)

### Summary of Proposal

- **Referendum #187**: Approved using Snowbridge to bring AAVE, sUSDS, and sUSDe to Hydration.
- **New Development**: Wormhole and MakerDAO/Sky Protocol partnered to enable native USDS transfers between Ethereum and Solana.
- **Rationale**: Aligning with Wormhole and MakerDAO/Sky Protocol for sUSDS liquidity.
- **Proposed Action**: Overwrite the Snowbridge decision for sUSDS.
- **On-chain Remark**: "Use Moonbeam Routed Liquidity (Wormhole) for sUSDS".
- **Outcome**: Allows Hydration Council to proceed with Moonbeam Routed Liquidity (Wormhole).

Use MRL for sUSDS

Moneymarket celebration H2O fueled HDX Buyback

- Proposal aims to fix previous failed proposal #233.
- Withdraws USDC/USDT and DOT from Omnipool.
- Withdraws additional USDC/USDT shares and DOT from staking rewards.
- Plans to use 100,000 DOT, 222,222 USDC, and 222,222 USDT for a Money Market.
- Prepares for stablecoin liquidity restructuring.
- H2O received will be used to buy back HDX.

Motion #235 re-try #233 with slightly revised params due to market conditions

- Approves the use of the pool proxy contract `0x1b02e051683b5cfac5929c25e84adb26ecf87b38` by all participants.
- Allows the treasury to supply assets using its EVM address.
- Assigns the Technical Committee-controlled proxy as the emergency admin to pause the market if needed.
- Registers interest-bearing tokens aDOT, aWBTC, aUSDT, and aUSDC.
- The treasury supplies 100k DOT, 17 BTC, 222k USDC, and 222k USDT.

Activate Borrowing

### Proposal Summary

- **Withdraw Liquidity:**
  - Remove USDC/USDT 2-Pool LP position from Omnipool.
  - Remove DOT LP position from Omnipool.
  - Withdraw 470,000 shares from the USDC/USDT 2-Pool.

- **Use of Funds:**
  - Use 100,000 DOT, 222,222 USDC, and 222,222 USDT to seed a Money Market.
  - Prepare for stablecoin liquidity restructuring with the launch of HOLLAR PSM.

- **H2O Usage:**
  - Use H2O received from withdrawals to buy back HDX via DCA.

- **Verification:**
  - Verify call data before the v32.0.0 runtime upgrade on `rpc.nice.hydration.cloud`.

Withdraw treasury DOT and 2-Pool LP positions

**Hydration Chain v32.0.0 Summary**

- **Liquidity Mining Overhaul:**
  - Added claim fee to prevent constant claiming and dumping.
  - Resetting "loyalty factor" when claiming, incentivizing long-term users.
  - Simplified entry and exit from pools and farms.

- **Other Changes:**
  - Stableswap now allows proportional withdrawals without slippage.
  - Fixed "overweight" XCM messages issue.
  - Added Dwellir bootnodes.
  - EVM wallets can now use insufficient assets as fee payment.

- **Money Market Launch:**
  - Following a referendum, Money Market can be launched instantly.

Upgrade Hydration to v32.0.0

- The proposal aims to send a message from Hydration parachain to Asset Hub to "touch" three Ethereum assets: AAVE, sUSDe, and sUSDs.
- "Touching an asset" refers to a process that allows the Hydration parachain to interact with additional assets beyond its current limit.
- Asset Hub has a limit of 64 consumers per account, and each asset stored takes up one consumer.
- The Hydration parachain has reached this limit, so touching assets is necessary to operate with more assets.
- The process involves sending a transact instruction to Asset Hub.
- The code for this process can be found in the provided GitHub link.

Enable transfers of AAVE, sUSDe and sUSDs via Asset Hub

- Proposal to whitelist address `0x71feb8b2849101a6e62e3369eaafdc6154cd0bc0` for deploying Money Market smart contracts.
- Transfer `0.1` WETH to the address to cover deployment fees.
- Requires a runtime upgrade and a final referendum for approval.
- Deployer will deploy contracts and transfer ownership to the protocol.

Whitelist Money Market contract deployer

### POL Diversification Strategy

- **Approved Actions**: Diversify Protocol Owned Liquidity (POL) with $400K into SOL, $400K into AAVE, and $200K into SUI.
- **SOL**: Swap $150K sUSDS for USDC, then for SOL via OTC and DCA.
- **AAVE**: Swap $200K sUSDS for AAVE via CowSwap and DCA.
- **SUI**: Swap $100K sUSDS for USDC, then for SUI via OTC and DCA.
- **HDX**: Swap remaining sUSDS ($303K) for HDX via DCA.
- **Snowbridge**: Use Snowbridge for AAVE, sUSDS, and sUSDe to minimize exposure to trusted bridges.

Ratify POL diversification Q4 24

Initiate iBTC DCA schedule

- DED token launched with PINK, starting the memecoin trend.
- Some XCM transactions failed, trapping DED tokens.
- Trapped tokens couldn't be used to pay fees, making them unclaimable.
- After updates and discussions, a solution was found.
- Proposal aims to reclaim trapped assets for affected users.
- If approved, users can recover their trapped DED tokens.

Return trapped DED tokens

Launch MYTH/ DOT farming

- The proposal is about transferring half of the Hydration Parachain sovereign account DOT from Polkadot to Hydration Parachain sovereign account on AssetHub.
- This will allow direct transfer of DOT between AssetHub and Hydration and payment of XCM fees on AH in DOT.
- This will enable integration with Snowfork bridge.
- The proposal is the first part of the effort to move DOT reserve from Polkadot relay chain to AssetHub.
- The proposal recommends fast-tracking the referenda.

Send half of the Hydration sovereign account DOT from Polkadot to AssetHub 

- The proposal is to upgrade the runtime to release `v31.0.0`, version `hydradx/264`.
- The upgrade includes new features like ERC20 currency binding, support for assets with xyk dot pools as fee asset, and more.
- The upgrade also includes some fixes like reversible evm address and OutOfGas error for low weight evm transactions.
- The minimum total farm rewards for xyk liquidity mining will be lowered, which will allow creation of the MYTH/DOT farming incentives as part of Polkadot Hydration.
- Full release notes can be found at https://github.com/galacticcouncil/hydration-node/releases/tag/v31.0.0.

Democracy External Proposals