This proposal is requesting funding for IGL to continue the development of Hydration for a further 12 month period, and if approved, will transfer ~$1,700,000 equivalent of various stablecoins and CFG from the Hydration Treasury to 12TyzL1tMod3jm2NvQd5egHDbn2TRdbQTUBEUJ25p6yW31xK - a 2/3 multisig under the control of IGL. This request is a 32% reduction in our previous funding as a result of the recent changes mentioned in our blog “The Way Ahead” (https://hydration.substack.com/p/the-way-ahead)

Prior to this transfer, the Hydration Treasury holds approximately $10,500,000 of non-HDX protocol owned liquidity (POL) - with a further ~$8,000,000 of HDX tokens.

In the last 12 months, the protocol has generated $2.65M of fees, of which $1.63M is revenue - these are approximations based on what is correctly tracked, there are also an additional ~$60K of outstanding HOLLAR borrow fees. These numbers do not reflect any historic or ongoing protocol earnings on POL through strategies such as PRIME, Decentral & Sigil.

Based on the current $11,200,000 of HOLLAR borrows - the annual revenue from HOLLAR alone is $500,000+ - the launch of the PRIME looping strategy on Hydration contributed significantly to the increase in active loans, and we expect similar and even much greater uptake with the addition of multiple new earning strategies as Hydration establishes itself as A secure home for your onchain capital.

The below table summarises the assets to be transferred by this proposal: