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.
I am gonna vote Aye.
If you are bullish on the price of HDX, then you do not want to be LPing HDX as your expectation of HDX price going up will expose you to significant IL if it out performs the weighted average of all other assets in the Omnipool.