Welcome to the HydraDX Monthly Update, where you can keep track of all things HydraDX. In conjunction with the monthly newsletter, live AMA Office Hours will be held in Discord during the following times on June 8th:
4pm UTC (9am/12pm PST/EST; 12am HKT/SGT - June 9th)
7/10pm PST/EST (10am HKT/SGT - June 9th)
For those who are unable to attend Office Hours, there will be two 1-hour text-based AMA sessions occurring:
Chinese - 9pm HKT/SGT Thursday (June 8th) in WeChat
English - 11am UTC Friday (June 9th) in Discord
If you haven’t subscribed, join us:
Stay Calm and BUIDL On
Gm! We hope everyone has managed to keep their sanity with the constant barrage of events in crypto markets over the past month. From memecoins to BRC-20s, crypto truly never sleeps. Meanwhile, here at HydraDX, we remain laser-focused in delivering secure and exceptional product features to our community and users.
Although the updates we implemented last month were more subtle and focused on the backend, they are just as crucial as new features and integrations. Additionally, we took advantage of opportunities during this month to introduce HydraDX and explain our vision to various audiences in the broader Polkadot ecosystem. Our progress towards becoming the preferred DEX within the ecosystem continues steadily.
As usual if there is any feedback on what our team can do better, please do drop us a comment in Discord.
Without further adieu, let’s get into it! 🐉🐉🐉🌊🌊🌊
Key Protocol Updates
Liquidity ADD Re-enabled
Following the finding of a bug in the code by a whitehat, technical contributors of the Protocol worked to engineer a long-term solution to mitigate the points raised. This came in the form of Security Update #1 in late March which added a number of security features.
However, adding liquidity was still disabled as the team had some additional security features to ensure maximum security on behalf of users adding and withdrawing liquidity positions in the Omnipool. Following Referendum #45, with the add of Dynamic Withdrawal Fees, LPing in the Omnipool is now back in business!
What are Dynamic Withdrawal Fees?
To protect the Omnipool liquidity, all withdrawals of liquidity positions are subject to a fee. The withdrawal fee is dynamic, ranging between 0.01% and 1% of the total amount. The fee is to ensure that a large discrepancy between spot and recent average price is not subject to price manipulation and thus eliminates the potential attack vector identified previously by the whitehat.
For further detail on Dynamic Withdrawal Fees, check 👉 here
Adding 20M HDX from Treasury
As a follow-up to last month’s update, we noted that HydraDX would be proposing to utilize HDX from the treasury to fill available LP position for HDX. This is part of the transition for the Protocol to be the only LP for HDX. Through Referendum #45, the treasury has added 20M of HDX into the Omnipool to LP for HDX.
The rationale for this transition is that the Protocol would become the sole HDX liquidity provider in the Omnipool. This transition would allow the Protocol treasury to insulate individual HDX holders from being exposed to impermanent loss for the gain of trading fees. Instead, on a longer term basis, the POL utilized to LP HDX into the Omnipool could be re-distributed in other ways - such as sending a portion of those earnings back to HDX stakers, thus protecting them from IL.
The work on HDX staking is still a WIP at the moment and any such changes to POL trading fee distribution would need to be approved through governance - but be sure to be on the lookout. 👀
Pods & Twitter Spaces in May
It was a busy month for @lolmcshizz and @degengami whom sat down with different teams within the space to share in on what HydraDX has been up to and the longer term strategic vision. For those of you who missed them, check out the links below for the recordings:
Talisman - HydraDX’s Omnipool & Latest Updates
https://twitter.com/wearetalisman/status/1659453841417605120?s=20
Polka Defiance - How HydraDX is a Game Changer for DAO & Treasury Liquidity Management
Polkaworld - HydraDX: Revolutionizing Decentralized Trading
https://twitter.com/polkaworld_org/status/1658702295784386560?s=20
Development Progress Hub
A selection of development updates on various items in progress. The updates span over a month and is ordered chronologically (as much as possible) for each item.
Partnerships / Business Integrations / Operations
Project Treasury LP (a.k.a. Hydrate Your Treasury)
Partnering with interested parachains to deploy part of their token supply into the Omnipool as a LP to help reduce their liquidity budget.
Onboarded Zeitgeist
ASTAR governance has approved listing ASTAR in the Omnipool and providing POL: https://forum.astar.network/t/listing-astr-in-hydradx-omnipool-seeding-initial-liquidity/4696
Centrifuge undergoing governance discussion for Omnipool listing: https://gov.centrifuge.io/t/rfc-listing-cfg-in-hydradx-omnipool-seeding-initial-liquidity/5412
Confirmed with Bifrost
Moonbeam HRMP now opened
Polkadot Assurance Legion (PAL)
HydraDX is leading a new ecosystem initiative which will pool together funds to help parachains undergo rigorous audits.
Initial members of PAL include: HydraDX, Interlay, Astar Network, Manta Network, Bifrost, Acala, Centrifuge, Zeitgeist and Equilibrium.
Besides audits, PAL will drive the adoption of various methods for (formal) verification and the development of tooling.
Submitted proposal on 3/30 for the Polkadot treasury bounty for discussion here: https://polkadot.polkassembly.io/post/1752
Product Features / Cross-chain / Infrastructure
Dynamic Fees
Description: This feature allows the Protocol to be able to charge varying fees based on volatility (via. price and volume oracle data); this increases profitability for LPs, including HydraDX’s POL position, who are hit harder in volatile trading environments.
Notes:
Omnipool integration reviews complete.
PR #163 merged to main, #553 to be merged imminently.
Testing on rococo to be started within the next few days.
UI implementation pending.
EMA Oracles
SHIPPED & AUDITED ✅
DCA
Github PR: #510 - MERGED
Description: This feature allows users to gradually accumulate / distribute an asset position without incurring major slippage, achieving better average pricing. Protocols and project teams can also leverage this to diversify their treasury holdings.
Notes:
Runtime implementation complete - reviews complete. Merged to Master.
UI implementation almost complete.
Rococo testing live in the coming days.
Ongoing discussion to agree the DCA schedule.
Stableswap Pools
Pallet: https://github.com/galacticcouncil/HydraDX-node/tree/master/pallets/stableswap
Description: This feature allows for creation of Stableswap Pools - closely pegged assets traded based on a different invariant curve (similar to Curve Protocol) - within the Omnipool. This is most ideal of stablecoins and liquid staking derivatives (i.e. stDOT).
Notes:
Audit ongoing.
Design complete pending UI implementation.
Liquidity Mining
Description: This feature allows for distribution of rewards to deposited LP positions in the Omnipool. Multiple farms can be set up to reward the same LPs - e.g. HDX & DOT rewards to DOT LPs in the Omnipool.
Notes:
Rococo testing ongoing - LM launch set to go live imminently.
XCM Rate Limiter
Description: Security feature to limit the rate of both inbound and outbound transfers. A key use case would be to limit token transfers of an exploited token to HydraDX and prevent the exploiter from draining other assets with this token.
Notes:
Set to be deployed imminently onto Basilisk.
HDX Staking
Description: Non-inflationary staking mechanism for HDX to secure the network from potential malicious governance activity. Yields for HDX stakers will be generated from on-chain activity - other factors such as time locked and governance participation will impact individual reward rates.
Notes:
Specification agreed for initial implementation - designed to allow additional features at later date. Implementation set to begin imminently.
Design work initiated.
Other developments
Upgrade to Substrate v0.9.38 PR: #546 - MERGED
Set to be deployed on Basilisk imminently.
Development of API infrastructure to provide data such as Omnipool pricing to e.g. CoinGecko HydraDX API
Initial implementation up and running - first APIs prepared for Coingecko ready for adding HydraDX Omnipool as DEX data source.
Governance Square
A selection of recent governance proposals. Proposals where vote totals/controversy are not discussed can generally be assumed to have passed overwhelmingly (>90% non-abstaining vote*).*
Proposals/ In Discussion
N/A
Passed
Ref #47 - Upgrade runtime to release v16.3.1
Ref #46 - Accept Moonbeam HRMP
Ref #45 - Authorize upgrade to v16.3.0 & add HDX liquidity to Omnipool
Ref #44 - Open HRMP channels w/ Bifrost
Ref #43 - POL Diversification and Deployment (Q2+ 2023)
DOT+Ecosystem Partners News
HydraDX Omnipool Basics
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About HydraDX
HydraDX is the go-to decentralized trading platform native to the Polkadot ecosystem. HydraDX’s Omnipool offers the lowest slippage dollar-for-dollar per TVL for traders and the most flexibility in deploying their capital for LPs. Visit HydraDX to learn more and discover how we are bringing an ocean of liquidity to Polkadot and DeFi.
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