The HydraDX Treasury currently contains ~300M HDX worth ~$1.5M at current prices: https://hydradx.subscan.io/account/7L53bUTBopuwFt3mKUfmkzgGLayYa1Yvn1hAg9v5UMrQzTfh

Whilst addLiquidity has been paused, a gap has formed between the 5% HDX weight cap and the current amount of HDX in the Omnipool - currently there are 74M HDX vs a cap of 90M. As we transition towards HDX staking, I believe that it's important that the treasury is the largest/ only LP of HDX - therefore, in order to prevent a large influx of HDX LPs once addLiquidity is re-enabled, I propose that we maintain a small buffer above the 5% weight cap for the HDX liquidity added from the treasury.

I would like to see another ~$400K of HDX from the HydraDX Treasury pre-authorized to be added as POL to the Omnipool in order to maintain e.g. 5.2% weight in the Omnipool and prevent further HDX LPing until we understand entirely what actions are required when HDX staking goes live - this would be added in stages as the TVL of Omnipool increases.

As a first step, this would involve adding ~30M HDX from the Treasury to the Omnipool at the same time as we re-enable addLiquidity shortly.

I'm interested to hear wider views on this - it is worth noting that with the recently approved proposal to swap 1,000,000 DAI for HDX, we will have a significant increase in HDX in the treasury over the coming months that will more than offset any liquidity requirements from this proposal.