Date: May 24, 2023
Omnipool pallet address on HydraDX chain:
Requested Amount: 2,222,222 ASTR or more** (~$115k at time of writing)
Note: These funds will remain in control of Astar governance.
We propose to use ASTR from Astar treasury and provide it cross-chain into the HydraDX Omnipool as an LP position controlled by the Astar governance. The intent is to seed initial liquidity and start trading ASTR at HydraDX Omnipool. Natively and efficiently within the Polkadot ecosystem.
ASTR will be provided as an LP position into the Omnipool. Trustlessly and without losing control of the funds. The ASTR position can be withdrawn at any time by the Astar governance and ASTR sent back to its treasury. All made possible by XCM.
Important fact to realize is that this model is superior to alternatives, where teams have to spend capital to be listed on CEXes or aquire the other half of the pair for seeding common fragmented XYK pools on other DEXes.
We consider requested amount as bare minimum but we recommend to extend the position for better capital/trading efficiency. To put some perspective on this, on $1000 trade you currently get:
USDT/DOT ($465k liq): 0.26% slippage
USDT/iBTC ($298k liq): 0.38% slippage
USDT/ZTG ($172k liq): 0.62% slippage
The process consists of these steps:
- ASTR governance approves & executes a proposal to send ASTR via XCM to the HydraDX Omnipool account (a system account with no private key)
- HydraDX governance launches a council motion which is fast-tracked and enacted in 3-4 hours
- After step 2 is complete, ASTR becomes tradeable within the Omnipool. Sender (i.e. Astar sibling account
7LCt6dFnHxYDyomeCEC8nsnBUEC6omC6y7SZQk4ESzDpiDYo), is set as the LP position holder so it can control the position via XCM Transact calls.
HydraDX is a next-gen DeFi protocol which is designed to bring an ocean of liquidity to Polkadot. Our tool for the job the HydraDX Omnipool - an innovative Automated Market Maker (AMM) which unlocks unparalleled efficiencies by combining all assets in a single trading pool.
Cross-chain communication and cooperation is one of the core principles of Polkadot. Both sides, the Astar DAO and HydraDX DAO, will benefit from moving this proposal forward. With growing liquidity and number of listed assets in the HydraDX Omnipool, everyone will be able to gain access to a decentralized, permissionless and frictionless way to trade (or accrue value of) ASTR with high capital efficiency and low slippage.
Users will be able to trade native ASTR within the dotsama ecosystem, no need to use CEXs or bridge to Ethereum anymore.
Omnipool will allow:
- Trading ASTR vs. any other asset in the Omnipool (currently HDX, DOT, DAI, ZTG, wETH, iBTC, wBTC, native USDT + a lot more in the pipeline)
- Single-sided LPing
- OTC trading
- Cross-chain transfers
In a very short-term horizon (expected May/June 2023):
- DCA (dollar-cost averaging) (!!)
- Dynamic fees
In mid-term horizon:
- Stableswap pools
- Order batching
Long-term vision include bonds, money-market, liquidation engine and other exciting features that a DEX with cutting edge tech on Polkadot can bring.