{"postId":"opengov:382","kind":"opengov","title":"HDX Liquidity Provision on Kraken - Continuation (6 Months)","body":"Three months ago, [Referendum #335](/referendum/opengov/335) funded a controlled test of protocol-owned HDX liquidity on Kraken. The test is complete and the full data review was published and discussed here: [3-Month Review & Continuation Discussion](/discussions/s265). The feedback favored continuing with a stable-side top-up - this referendum enacts exactly that (Option C from the discussion).\n\n> **What the test delivered (May 22 - Aug 11, all data in the review):**\n> - HDX/USD spread: from ~1-2% to a **1-3 bps median** (0.012% on CoinGecko today)\n> - Two-sided quotes live **99.7%** of hours - **100% over the last 28 days**\n> - ±2% order-book depth roughly **doubled**\n> - Treasury inventory fully intact and grown: ≈ **+$5k vs. simply holding** at the review cutoff, ≈ **+$6.5k as of Aug 17** - net of all fees\n> - No funds lost; two attempts to exploit the operation failed; every incident led to a fix (289 commits)\n> - Net result for the treasury after the operator fee: slightly profitable - ≈ **+$3k as of Aug 17**\n\n**This referendum transfers:**\n\n- **20,000 HOLLAR** to the [LP operations account](https://hydration-explorer.neckwork.net/tag/hdx-kraken-lp) - restoring the HDX/stable inventory balance that the HDX rally (+~100% since launch) has shifted to roughly 70/30. Deeper stable-side inventory funds deeper bids during sell-offs (fewer and shallower wicks), reduces the book's directional HDX weight and enables a properly quoted HDX/EUR.\n- **7,200 HOLLAR** to the operator - operator fee: 1,200/month × 6 months, paid upfront - same rate and account as ref #335.\n\nThe call mirrors ref #335: `Dispatcher.dispatch_as_treasury` → `Utility.batch_all` of two HOLLAR transfers (wrapped in `dispatch_with_extra_gas`, as HOLLAR is ERC20-backed).\n\n**All inventory (~8.8M HDX, stables, and accrued P&L) remains treasury-owned and recallable by referendum at any time.**\n\nHonest expectations, unchanged from the review: protocol-owned market making pays for tight spreads through inventory risk - some quarters may show a negative P&L. The test quarter ended profitable.","bodyFormat":"markdown","tldr":"","labels":[],"linked":[],"author":{"account":{"accountId":"0xb2927ffd2bbb0a73a317ab830e2dccd5e30cb0231c3ce7224be0f233b330742f","address":"15393VqXBSpxYDXALvGxbaeZoHwfDmh3jgG2t2iGK9vSAx7K","emoji":"🦒","tag":null,"identity":{"display":"Giraffe","verified":true,"email":"","web":"","twitter":"@1xGiraffe"},"profile":{"name":"Giraffe","avatarVersion":2}},"legacyName":null},"authority":"subsquare","revision":0,"createdAt":"2026-08-17T12:31:30.000Z","editedAt":null,"lastActivityAt":"2026-08-19T09:36:45.000Z","commentsCount":0,"updatesCount":0,"upvotes":0,"threadKey":"opengov:382","source":{"name":"subsquare","id":"6a82ff5f781cee3ac49830fc","cid":null,"removed":false},"bannerCid":null,"banner":null,"poll":null,"locked":false,"media":{},"hidden":false,"generation":"6690c444c3e1fdf2"}