what about use ibtc? from interlay?  with a little amount Would it be possible to place a vault to mint that amount of ibtc?

and these may or may not be linear, right? I mean the order, and as the situation is evaluated

Overall I like the idea and the process very much. Despite challenging conditions, Hydra is making good progress. I appreciate the fact that you involve the community in the decision-making process.

As for now, I would like to ask you about one idea regarding initial liquidity. 

The proposal states: "Deploy up to $500k worth of HDX from the HydraDX Treasury into the Omnipool."

**What do you think about seeding the initial HDX liquidity from the community members willing to sell their tokens? Instead of raising it from the treasury.**

Gearbox protocol decided to launch in this way recently. (details: https://medium.com/gearbox-protocol/gear-cidered-liquidity-launch-explainer-37e5882f4d91) Of course, there are some differences and their launch process was a bit more complicated because of the price discovery involved but in our case, it should be straightforward.   

Benefits:

- Not increasing the number of tokens in circulation
- Probably we have some holders willing to sell regardless of the price (tough market conditions, financial problems, waiting for a long time). With low initial liquidity, the price will drop fast, and probably we won't recover soon without a change in overall market sentiment. In that way, they will be able to at least cash back the investment + staking rewards/crowdloan rewards.
- Even if there won't be enough holders willing to seed the initial liquidity with their tokens that will be a good sign for others that there is no rush to sell HDX from the community at the LBP price.


As usual thank you for communicating and involving the community into the decision-making process.
I have a question concerning the fact that there is no assets from the Polkadot eco-system, is that something wanted, it could be nice to start locally and then move globally, just curious about that.

[@7Hec...pYNq](7HeckWvKuuFGGWRN1S51UJ4EdHKtbcM1VU1ccFc3BCAvpYNq-hydradx) Polkadot ecosystem assets will be most likely added through project treasuries/ DAOs and LPs, as opposed to being bought with Omnipool Protocol Owned Liquidity. The interoperable design of Polkadot allows trustless provision of liquidity through XCM, directly from a project treasury into the Omnipool - with a host of benefits to that specific treasury. Therefore the POL should focus on assets that can't be sourced this way - such as stablecoins and BTC/ ETH :)

This specific discussion is around deploying our POL during Q1, however, our [second discussion](https://hydradx.subsquare.io/post/34) is seeking feedback on makeup of Omnipool liquidity in general, including our proposal to allow up to 20% of TVL to include ecosystem stablecoins

[@TOKENSWOLF](7NMNjF4nVE5FyA9yD1dCRKKauUDF1PkHXNt8stDhG8UKp1q8-hydradx) Thanks ser for an interesting proposition - since this discussion began however it has become abundantly clear that there is overwhelming demand for LPing of HDX from current HDX holders. As a result, I envisage that there will in fact not be any capacity within the weight cap for HDX for the treasury to provide any further liquidity - as this will move up every time we increase the TVL cap and is getting filled very quickly.

This proposal allows for allocation "up to" a certain value - however, each move to deposit the liquidity into the Omnipool will be executed through community referenda and therefore we can address this with each increase we seek.

[@Jose Crypto](7NzNFJb2pfy2mZzdS2ky8okkXZL52fn2VAvAsc8jigvCtBec-hydradx) Interesting discussion regarding this currently ongoing on our [other discussion topic](https://hydradx.subsquare.io/post/34) - Alexei from Interlay has commented his thoughts :)

[@7MT3...A9TN](7MT3xmkBEmNbBEDta1aWBM5JTZccDkBVwKnND5btbVKKA9TN-hydradx) It's a decentralised stablecoin and given we would like to see 40-50% of the total Omnipool liquidity in stablecoins it's also important to have a variety of options.

We don't have better options available that don't carry the same risks re: bridging.

It was also used as the stablecoin to initialise the Omnipool, so a pretty big change would be needed to remove it entirely.

 I would like to see a little more HDX stock, I got the proposal, but it could be 700,000 HDX

[@7KCX...Gyby](7KCXeJmMBjd7uM79kVLpBqkXswPTtvjiKEhg4Bufu8EDGyby-hydradx) most surely the same comunnity will add the hdx side 

`sinnce this discussion began however it has become abundantly clear that there is overwhelming demand for LPing of HDX from current HDX holders. As a result, I envisage that there will in fact not be any capacity within the weight cap for HDX for the treasury to provide any further liquidity - as this will move up every time we increase the TVL cap and is getting filled very quickly.`

I agree that in this early stages, most of HDX holders would like the opportunity to LP. As being one of the most early active supporters, I would like the chance to add HDX with priority over the new coming opportunity seekers. That being said, I would like to offer my personal thoughts for the POL diversification. I agree that all caps should be extended, HDX with priority, but regarding non native tokens, over the wormwhole it's quite difficult, especially when you need for example to already have host tokens available, to be able to execute transactions (ACA for example).  I see the benefits of diversifying the POL with all major and massively used tokens like ETH and WBTC but personally I would like to see more polkadot native tokens like USDT, USDC, LINK, KSM, and a few others, having higher liquidity caps than non native tokens, at least until we have a more user friendly and streamlined possibility to add that kind off liquidity from a basic user standpoint.
And please extend the current caps as soon as possible, to reduce price impact and slippage. Slippage is a killer, for example I've taken the advantage to grab more HDX at a lower price, and a 500$ value transaction incurred an 11% price impact. I paid the price to take advantage of the opportunity but it's prohibitive!

[@xBits](/user/xBits) yep, you can see on the current council motions, the proposal to increase the TVL cap to 500k



This framework authorizes and mandates the HydraDX Council to diversify and deploy up to 7.7M DAI of the HydraDX protocol owned liquidity (POL) during Q1 2023 as follows:

**ETH**

- Swap up to 2.2M DAI into ETH using an Ethereum-based DEX;

- Bridge the amount to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;

- Deploy the amount into the Omnipool.

**WBTC**

- Swap up to 1.1M DAI into WBTC using an Ethereum-based DEX;

- Bridge the amount to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;

- Deploy the amount into the Omnipool.

**USDC (native)**

- Explore mechanisms to swap up to 2.2M DAI into native USDC. The mechanism will be voted by the community prior to execution;

- Deploy the amount into the Omnipool.

**USDT (native)**

- Explore mechanisms to swap up to 2.2M DAI into native USDT. The mechanism will be voted by the community prior to execution;

- Deploy the amount into the Omnipool.

**DAI**

- Bridge up to 2.2M DAI to Acala using Wormhole, transfer via XCM to the HydraDX Treasury account;
Deploy the amount into the Omnipool.

**HDX**

- Deploy up to $500k worth of HDX from the HydraDX Treasury into the Omnipool.

--------------

**We look forward to your thoughts and feedback in this discussion post.**


1. HydraDX Council will use some of their money to buy different types of cryptocurrency.
2. They will use a special way to move the cryptocurrency to their account.
3. They will put the cryptocurrency they bought into something called the Omnipool.
4. They will explore different ways to buy two types of cryptocurrency called USDC and USDT.
5. They will also use some of their own cryptocurrency called HDX to put into the Omnipool.

POL Diversification and Deployment (Q1 2023)