Proposer: SQD Core Team

Date: June 29 2025

📌 Overview

This proposal seeks to list SQD, the native token of the SQD network on Hydration DEX Omnipool, enabling trustless SQD trading and liquidity provisioning within the Polkadot ecosystem. The listing will boost the adoption of SQD’s Web3 data infrastructure and strengthen it’s multi-chain accessibility, making it available to Polkadot users on their favourite DeFi platform.

🔍 Background on SQD and SQD’s network

SQD (formerly Subsquid) is a decentralised data infrastructure platform designed to provide developers with efficient access to on-chain data across various blockchain networks. It enables the creation of custom data extraction and processing pipelines, facilitating real-time and historical data analysis. SQD already provides free indexing services for developers and projects building on Substrate on the following networks; polkadot, kusama, asset-hub-kusama, asset-hub-polkadot, bridge-hub-polkadot, collectives-polkadot, and Westend.

1 SQD represents 1 unit of bandwidth on the SQD network. The SQD token thus has the following use cases:

• Alignment of incentives for infrastructure providers: SQD is used to reward node operators that contribute computation and storage resources to the network.
• Curation of network participants: Via delegation, the SQD token design includes built-in curation of nodes, facilitating permissionless selection of trustworthy operators for rewards.
• Fair resource consumption: By locking SQD tokens, consumers of data from the decentralized data lake may increase rate limits.
• Network decision making: SQD token holders can participate in governance, and are enabled to vote on protocol changes and other proposals.

SQD has a market cap of $105M - https://www.coingecko.com/en/coins/sqd-2 and 24hr volumes exceeding $25M, with many major exchange listings such as Coinbase and Binance Alpha, we believe SQD will be a valuable addition to the Omnipool, enabling Polkadot users to trustlessly trade and provide liquidity for it.

In order to bring SQD to Polkadot we are making use of Wormhole https://portalbridge.com/ Through Moonbeam you can access the wormhole app and then directly bridge SQD from BSC/ Arb to Polkadot Asset Hub, SQD can be XCMed to Hydration and used for trading/ LPing. All of this should happen in a seamless manner, thanks to Hydration’s user-friendly cross-chain UI which allows users to select Ethereum as a source chain and Hydration as a destination chain.

🌉 Action Plan

• This proposal is open for discussion for 1 week, after which we will proceed with submitting a referendum to place an on-chain remark, stating that the Hydration DAO supports the listing of SQD in the Omnipool;
• Register SQD in the Hydration Asset Registry;
• Request from the Hydration team whitelisting of SQD in the UI, and UI support for bridging SQD;
• Provide initial SQD liquidity by sending it to the Omnipool account;
• The Hydration DAO effectuates the LP using a fast-tracked referendum and transfers back the LP positions.
• The Plan is to provide $300k (in SQD) as initial liquidity, with the outlook of further TVL growth with the help of incentives.

🗳️ Call to Action
Please share your opinion on the Omnipool listing of SQD in this thread. We are happy to answer any questions you may have and are looking forward to strengthening Polkadot’s position as a hub for Web3 Dapps fuelled by decentralised and permissionless data access.

📚 References
SQD Website: https://www.sqd.ai/
SQD documentation: https://docs.sqd.ai/