It has been 11 days since we launched the Omnipool following our plan for a phased release which was proposed [here](https://hydradx.substack.com/p/hydrating-the-omnipool) and later [approved](https://hydradx.subsquare.io/democracy/referendum/18) by the HydraDX community. One of the reasons why we adopted this gradual approach is to monitor performance and tweak any parameters as we move forward and gain a better understanding of how the Omnipool behaves in the wild.

This proposal is to adjust one of the Omnipool parameters. As you’ll understand from our blog “[Feeding every Hydrahead](https://hydradx.substack.com/p/feeding-every-hydrahead)”, there are LRNA stabilization mechanisms which help reduce IL for LPs over time, one of which is described in the blog as “ *Whenever LRNA is sold back to the Omnipool, the accumulated Protocol Fee would be activated to burn LRNA until ~2x the amount of LRNA sold back is burnt. This provides an interesting game theory dynamic as the Protocol Fee helps support the price of LRNA.* ”

After reviewing the early performance of the Omnipool, we came to the conclusion that the so-called HubAssetImbalance is currently configured to burn too much LRNA. Against this background, we would like to propose the following two actions:

- Tweak the parameters in a way that reduces the amount of LRNA burned by the imbalance mechanism, thereby allowing it to operate closer to our conception;

- Reset the current HubAssetImbalance by setting it to zero.

**[Runtime upgrade to v15.1.1 release notes](https://github.com/galacticcouncil/HydraDX-node/releases/tag/v15.1.1)**

**Please note that adjusting the parameters of the LRNA imbalance mechanism and resetting the HubAssetImbalance will not have any negative impact on past trades or provided liquidity.**



With a proven track record of supporting 68 networks in the Polkadot/Kusama ecosystems, OnFinality aims to provide a basic RPC API service for all 38 Polkadot parachains. The proposal seeks to address the divide between well-funded parachains and struggling newcomers by ensuring universal access to reliable, performant, and SLA-supported RPC API endpoints. OnFinality suggests an immediate solution until a long-term infrastructure bounty is established, emphasizing the importance of supporting all parachains to foster network growth and developer adoption.

Organize and execute the Hackathon in Shangai,China.

- The Omnipool has been released gradually to monitor its performance.
- The proposal is to adjust one of the Omnipool parameters.
- The adjustment will reduce the amount of LRNA burned by the imbalance mechanism.
- The current HubAssetImbalance will be reset to zero.
- These changes will not affect past trades or provided liquidity.

Proposal to Adjust the LRNA Imbalance Mechanism (Runtime upgrade to v15.1.1)

No Active Proposals