What does it mean for GIGADOT APY? And some increased risks for the ecosystem?

[@7NXP...Lxew](7NXPwBz9n4fPMN6hmZNRKvCgoYp299MzMjbBsYV4xsjyLxew-hydradx) GDOT APY will find its equilibrium. We reached the current cap, that tells it might be too high, demand is still there and it should go lower with a higher cap.

The vDOT -> DOT liquidity on Hydration has grown significantly. In my assessment, the main risk lies at the protocol level, followed by governance on Bifrost - but overall, I consider it to be very low. The risk of market manipulation seems much lower due to the increased liquidity relative to the potential extractable value.

With higher TVL there will be def more responsibility for all protocols involved. But that's part of growing. Staying smol is not an option.

Disclaimer: just my personal POV, NFA & DYOR.

[@7NXP...Lxew](7NXPwBz9n4fPMN6hmZNRKvCgoYp299MzMjbBsYV4xsjyLxew-hydradx) Ignoring the impact of incentives, an increase in scale is a good thing for both GDOT and the entire ecosystem, including users. This product contains intrinsic motivation, and incentives are only part of marketing.

The driving force for the increase in scale comes from capital efficiency, a positive flywheel. And lower user fees

Risk is routine, while positivity increases exponentially.

This proposal, if approved, will:

- Add GIGADOT to the DOT/vDOT e-mode category - *this means for example that DOT can be borrowed against GDOT at a higher LTV and with a higher LT*
- **Increase the GIGADOT cap from 2,222,222 to 8,888,888** 
- Launch HDX incentives for GIGADOT - *distributing 2,222,222 HDX over ~90 days*
- Launch BNC incentives for GIGADOT - *distributing ~214,285 BNC over ~90 days*

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GIGADOT - The Polkadot Black hole-ening

root

whitelisted_caller

referendum_canceller

referendum_killer

general_admin

treasurer

spender

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omnipool_admin

Origin able to dispatch a whitelisted call.

 Origin for spending very high amounts of HDX(<= 50M HDX) from the treasury as well as generally administering it.

Origin able to spend up to 2,222,222 HDX from the treasury at once.

Origin able to spend up to 50K HDX from the treasury at once.

Origin able to perform specific Omnipool-related actions.