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.**



This proposal seeks reimbursement from the Polkadot treasury to cover Subscan's operation and maintenance costs from July to December 2022. Subscan plays a vital role as a block explorer and analytics tool for the Polkadot network. The reimbursement will cover expenses including server infrastructure, security measures, and personnel costs. Server infrastructure costs are estimated to support the network's smooth operation. Security measures ensure user data safety, while personnel costs reflect the dedicated team needed to maintain Subscan's functionality. This support ensures Subscan's continuous operation and contributes to the growth and development of the Polkadot network.

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- The Omnipool has been released gradually over 11 days.
- They want to adjust a parameter in the Omnipool called HubAssetImbalance.
- They want to reduce the amount of LRNA burned by the imbalance mechanism.
- They want to reset the current HubAssetImbalance 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)

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