Listing ASTR in HydraDX Omnipool & seeding initial liquidity

Astar Network (Polkadot) Approved proposals
1

Date: May 24, 2023

Omnipool pallet address on HydraDX chain: 7L53bUTBbfuj14UpdCNPwmgzzHSsrsTWBHX5pys32mVWM3C1

Requested Amount: 2,222,222 ASTR or more** (~$115k at time of writing)
Note: These funds will remain in control of Astar governance.

Short Summary

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.

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Detailed Description

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 The ASTR position can be withdrawn at any time by the Astar governance and ASTR sent back to its treasury.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.

Note on Efficiency**

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

Technical details

The process consists of these steps:

  1. ASTR governance approves & executes a proposal to send ASTR via XCM to the HydraDX Omnipool account (a system account with no private key)
  2. HydraDX governance launches a council motion which is fast-tracked and enacted in 3-4 hours
  3. 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.

Background

What is HydraDX?

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.

Video content:
Kusamarian - HydraDX overall
Kusamarian - HydraDX usage & efficiency

Alignment to the Mission of the Astar DAO

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.

Benefits for ASTR holders

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) (!!)
  • Liquidity-mining
  • Dynamic fees

In mid-term horizon:

  • Stableswap pools
  • Order batching
  • Staking

Long-term vision include bonds, money-market, liquidation engine and other exciting features that a DEX with cutting edge tech on Polkadot can bring.

Website:

11 Likes
2

Many thanks for the proposal. I would like to see ASTR on other parachains, especially where all the spending funds still in the hands of Astar governance.

In my opinion this mutual partnership will attract new Astr holder from other parachains and increasing traffic to HydraDX Omnipool. Let’s grow together.

2 Likes
3

Thanks for the proposal and I support it. HydraDX It has proven its stability already and is well recognized in our ecosystem.

1 Like
4

Thanks for this proposal, I totally support providing ASTR liquidity to Hydra’s Omnipool which is a reference for the ecosystem and will for sure push cross chain interactions to spread in the ecosystem!

2 Likes
5

Thanks for the proposal. It’s going to be great to see the ASTR token listed/available on Omnipool. Hydradx is a promising parachain, recognized for its hardworking team dedicated to delivering a high-quality product within the Polkadot ecosystem.

Moreover, a key differentiator is that the assets remain under the governance of Astar at all times. This ensures a high level of security and control, further solidifying our stance within the multichain ecosystem.

1 Like
6

I strongly support the proposal to provide ASTR liquidity to Hydra’s Omnipool. This integration is a big step forward for the ecosystem, as it will make it easier for different parachains to work together and drive innovation. By adding ASTR to Hydra’s Omnipool, we create a reference point that helps connect different parts of the Polkadot Ecosystem and that’s we are always intend to do.

1 Like
7

Thanks for the proposal, I want to share my support on this proposal, it is worth noticing that Astar community would still have control of the fund, and Hydadx is very promising in Polkadot as a parachain, it is good to see the parachain projects worked with each other and build the future of polkadot

8

Amazing proposal , I definitely want to see ASTR on other parachains as well ! I will support this proposal :smiley:

1 Like
9

Would love to see this happen.

1 Like
10

Hello @jgreen,

Welcome to Astar and I’m glad to see this proposal for collaboration between Astar Network and HydraDX, two valuable parachains on Polkadot with strong communities. :muscle:

I’m happy to support your proposal as I have high regard for the HydraDX project and its team for the innovation and value they bring to the Polkadot ecosystem. Having a new decentralized and efficient way to trade ASTR tokens directly on Polkadot is really important for our users and the Polkadot community. However, I would like you to provide some clarification regarding HydraDX’s liquidity provision mechanism for single assets and what the risks are for funds provided by the Astar Treasury to the Omnipool in terms of impermanent loss. :thinking:

I’m not familiar enough with HydraDX and have visited your documentation to find more information on this, but the section on impermanent losses is still under construction.

In the past, we have provided liquidity to projects for ASTR/xxx asset pairs on DEX and, unfortunately, IL hit the treasury liquidity hard due to the collapse of the xxx token price. Some community users warned of this potential outcome, others didn’t listen.

I think it’s important, in terms of transparency, that we know the benefits and risks before we make a decision about the Astar Treasury.

4 Likes
11
Approve The Use Of Treasury
  • Yes
  • No

0 voters

1 Like
12

100% need more cross-chain options like you offer, especially on the parachain level. I like the focus HydraDX has in it’s announcements and development.

1 Like
13

Thanks for your proposal. Great proposal I must say. Welcome to Astar ecosystem!

1 Like
14

I definitely support ASTR being listed on HydraDX which is posed to be the biggest and most innovative non-EVM DEX in the Polkadot ecosystem. Also, we finally need a DEX that will list most of the pairs in the eco and allow for deep liquidity so I can’t think of anyone more suited for the job than Hydra team.

15

Finally! Totally support cross-chains activities.
We need to make ASTR a real cross-chain asset.

3 Likes
16

Hey sir, To understand the associated IL well, we must go through the design behind the Omnipool, which you can get here: Omnipool Design | HydraDX Docs

In theory is based on LRNA (Omnipool hub token and which represents all the Omnipool liquidity) paired with the Y token, but understand the all picture is the best, so i recommend check the design

I know that the team is preparing some IL comparisons and calculators, so it is more understandable to the community, but dont know about the specific time for it

Hope this help to understand a little

Historical of LRNA until now

2 Likes
17

Thank you everyone for your support, Hydras appreciate!

We hope we can deliver the best trading experience for every ASTR holder. As mentioned in the post, 100k USD is a minimum and we hope we can prove in time it is worth extending this liquidity further so we can provide more attractive numbers for big holders/whales that will enter the ecosystem looking to buy ASTR in greater amounts which I am sure will happen with all the big partnerships going on.

Technically, this is what needs to be called on-chain:

Send 2222222 ASTR into the Omnipool (Initial seeding):

0x330201010100c91f01000101006d6f646c6f6d6e69706f6f6c00000000000000000000000000000000000000000104000000001f000078793dbb60e592d60100000000

LP position, after it is created, can be controlled by XCM transact calls. The exact call data will depend on performed action and available tools. Since on Astar there is no scheduler pallet, 2 different calls have to be sent.

Add additional 2222222 ASTR:

  1. Send 2222242 (20 for fees) ASTR to Astar sibling sovereign account:

0x330201010100c91f01000101007369626cd60700000000000000000000000000000000000000000000000000000104000000001f0000488d4601effa93d60100000000

  1. Add new position of 2222222 ASTR:

0x330001010100c91f0214000400010100591f00130000c84e676dc11b1300010100591f00130000c84e676dc11b0006010700f2052a01583b0209000000000078793dbb60e592d6010000000000140d010004000101006d6f646c70792f74727372790000000000000000000000000000000000000000

Remove previous position with 2222222 ASTR:

To remove a position, its ID determined only after the position is created has to be known. The calls will be similar to the following ones.

  1. Remove position with 2222222 ASTR:

0x330001010100c91f0214000400010100591f00170000d01309468e15011300010100591f00170000d01309468e15010006010700f2052a01883b0301000000000000000000000000000000000078793dbb60e592d6010000000000140d010004000101006d6f646c70792f74727372790000000000000000000000000000000000000000

  1. Send 2222222 ASTR back to Astar treasury

0x330001010100c91f0214000400010100591f00130000c84e676dc11b1300010100591f00130000c84e676dc11b0006010700f2052a011901890009000000000078793dbb60e592d601000000000001010200591f01006d6f646c70792f7472737279000000000000000000000000000000000000000000743ba40b000000140d010004000101006d6f646c70792f74727372790000000000000000000000000000000000000000

4 Likes
18

Full requested amount has been sent to the Omnipool. Looking forward to the next steps.

3 Likes
19

Is now tradable on the Omnipool :ocean::raised_hands:

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3 Likes
20

@Maarten I think we can closed this thread as ASTR already listed on Omnipool and all features include swap, add /remove liquidity are fully working. Good job to HydraDX team! Let’s grow together.

1 Like