Simplified Guide: Astar Community’s Liquidity Injection into HydraDX Omnipool
Introduction
The Astar Network Community has approved a significant funding of 5.54 million $ASTR tokens to enhance liquidity in the HydraDX Omnipool. This strategic move involves intricate technical steps due to the current system’s limitations.
Huge thanks to Spazcoin for sparking this buzz and write up about this process on Astar Forum!
This guide provides a simplified breakdown of the entire process, from planning to execution. 👇
Step 1: Understanding the Limitations
Before proceeding, it’s important to understand the limitations identified during the preparation phase:
- Only 100k $ASTR can be deposited or withdrawn at a time, which would require 54 separate deposits.
- HydraDX integrates a
schedulerpallet which could be used to perform the 54 deposits. But it can only be called from HydraDX governance and not by normal accounts. Plus that would result in 54 NFTs for the LP positions, making it more difficult to see cumulative stats for the deposit in the future. - Astar does not have the
schedulerpallet integrated. - In the HydraDX code, there’s an existential deposit of 0.147 $ASTR. Therefore Spazcoin suggested sending slightly more than the 5.4M $ASTR.
Step 2: Deciding on the Method
After reviewing many approaches, the consensus decision is to use HydraDX governance as a method to manage the pileup.
All transactions are consolidated to provide uniform monitoring/management, although coordination efforts must be developed between the Astar and HydraDX teams.
Step 3: Preparing for the Transaction
The Astar treasury will send 5.4 million $ASTR, from the Astar Sibling account on the HydraDX chain.
This approach is a bit more open and traceable from a multisignature account, which lacks this feature.
Step 4: Executing the Deposit
Once the $ASTR arrives in the HydraDX multichain wallet, HydraDX governance will supervise the deposit into the Omnipool.
The said action will be realized with a rigorous transaction call, which is designed in a detailed manner to adhere to the required accuracy.
Step 5: Future Management
Lastly, Astar Governance is allowed to send XCM messages which most probably will entail to withdraw the funds in increments from the pool.
These transactions can be carried out at a rate of 5% per transaction because of the maximum number of transactions per block in a blockchain.
Step 6: Continuous Improvement
Feedback from this operation has led to suggestions for both Astar and HydraDX:
- For HydraDX: Let normal accounts run the scheduler pallet as well and project outputs from a liquidity page which will contain statistics that are cumulative to allow for easy tracking.
- For Astar: Upgrade your integrations by Scheduler pallet allowing for more complex and automated transactions cross chains future.
Conclusion
This is the most significant use case for our cross-chain automated market maker known as HydraDX since it expands the liquidity in the Omnipool and showcases how projects in various blockchains can collaborate and integrate their technology.
With an intricate but powerful purpose, it’s one of the keystones to the more advanced and operationally efficient blockchain platforms.
We are just waiting for Astar team to review this process and unleash the injection to our beloved partner HydraDX’s omnipool! 🌊🌊🌊
Matt is a true Astarian, deeply immersed in the world of cryptocurrency. He wears many hats within the ecosystem, holding multiple roles that highlight his dedication and expertise.
As a dApp builder and Ambassador for Astar Network , Matt is actively involved in both the development and promotion of this innovative network. Not only that, but Matt is also a Core Member of various Astar projects, including AstridDAO , Bluez , SiO2, L2X and C14!
