Fellow Hydrators,

As discussed in the discussion I posted previously:

Discussions/action around recovering HDX liquidity and losses due to underperforming assets in omnipool (https://hydration.subsquare.io/posts/266)

This proposal addresses pulling the protocol HDX liquidity positions and replacing with a slightly deeper position.

What it does (single atomic batch, one block):

1. Raises the HDX Omnipool weight cap to 22% (temporary — the 1% cap would reject the re-add)
2. As Treasury: removes all 45 treasury HDX LP positions (97.04% of HDX LP), paying out ~130M HDX + ~134k H2O, then immediately re-adds a round 150,000,000 HDX as one fresh position at spot (the ~20M gap above the payout is covered from treasury free balance)
3. Restores the weight cap to 1%

Net effect:

• Treasury receives ~134k liquid H2O (accrued LP gains) to fund the ongoing HDX buyback DCA
• 45 old positions consolidated into 1, entry price rebased to current spot
• Zero price impact — both legs execute at spot; verified on a chopsticks fork: spot unchanged, all events clean
• Payout amounts drift slightly with the buyback between now and enactment; the fixed 150M re-add absorbs this automatically, no rebuild needed

Stay hydrated :)