On October 24th, ~113M DOT which was locked in the first batch of Polkadot crowdloans will be returned to its owners. Amounting to a whopping ~10% of the circulating supply, this event has not been spared of FUD. With some expecting a dump, while others not ruling out a pump - in reality, we will have to wait and see what the invisible hand of the markets is cooking.
Regardless of how the DOT price develops on Tuesday and the weeks that follow, the HydraDX Protocol retains a strong conviction in the Polkadot ecosystem. This is our home, we are here to stay, and we are more bullish than ever on Polkadot.
To celebrate the Great Unlock, the HydraDX Protocol is preparing to accumulate more DOT into its Protocol-owned liquidity (POL), on top of the 400k+ (v)DOT it already hodls. For this purpose, the Protocol is considering a Bonds campaign (subject to a governance vote) conducted via an LBP event. Besides accumulating more DOT, the Great Unlock will allow us to test two new features that recently hit mainnet.
If approved, the HydraDX Protocol will issue 50,000,000 HDX bonds (HDXb) with a 1-year maturity. Once the maturity date has been reached, these bonds are 1:1 redeemable against HDX. Also before the bonds have matured, HDXb remain transferable and tradeable on the secondary market (e.g. OTC). You can learn more about bonds in our docs.
The method of distribution for this first Bonds campaign will be a 24-hour DOT/HDXb LBP event - a real throwback for the OG Hydrators out there. The LBP will kick off on 24.10.2023 - follow our socials for the exact start time. At the start, the HDXb price will be set 22% higher than the HDX spot price. Over time, the shifting weights mechanism of the LBP will exert downward pressure on the price. The falling price will be counteracted by any buy orders obtaining HDXb from the pool. For the precise configuration of the LBP event please check the democracy vote.
Before participating, we encourage everyone to get familiar with the mechanics of an LBP in our docs.