{"postId":"opengov:454","kind":"opengov","title":"Proposal to sweep idle protocol HOLLAR reserves to the HSM buyback pool","body":"```\nFellow Hydrators,\n\nWith HOLLAR trading about 90 bps under peg and the HSM buyback inventory spent \n(as described in refs #452 and #453), there is an opportunity for a complementary \ngovernance action that neither of those two referenda covers.\n\n**Background**\n\nRefs #452 and #453 address the demand side — #452 raises the HOLLAR borrow rate \nfrom 4.5% to 5.5% APY to incentivise repayment, while #453 lowers the facilitator \nbucket from 13M to 11M to cap new minting. Both are well-designed and I have \nvoted Aye on each.\n\nHowever, the Omnipool protocol fee account still holds a pool of accumulated HOLLAR \nfrom trading fees. This HOLLAR effectively sits on the sell side — it is protocol \nincome that has been earned but not yet deployed. While it sits idle, it adds \nnothing to the peg and arguably weighs against it, because the market knows there \nis un-deployed HOLLAR in protocol accounts.\n\n**Current situation:**\n\n- HOLLAR peg: ~91 bps under target (source: Omnipool spot, block ~16,926,000)\n- HSM buyback inventory: spent (confirmed in #452 and #453 proposal text)\n- Stable pools: weighted roughly 72/28 towards HOLLAR (#452 text)\n- Omnipool protocol fee account: holds accumulated HOLLAR and mixed-token fees \n  that have not been swept since the last claim\n- The `dispatchAsAaveManager` origin used by #452 and #453 cannot reach these \n  reserves — they sit in the Omnipool pallet account, which requires Root to move\n\n**Proposed action:**\n\nSweep accumulated HOLLAR protocol fee reserves from the Omnipool fee account \ninto the HSM replenishment address. This converts idle sell-side HOLLAR into \nactive buy-side inventory, directly supporting the peg alongside #452 and #453.\n\n**Why Root?**\n\nThe dispatcher pallet provides `dispatchAsAaveManager` (track 9) and \n`dispatchAsTreasury` (track 5), but the Omnipool protocol fee account is a \npallet-level account managed by the Omnipool pallet itself. Moving reserves \nfrom this account requires Root origin, same as ref #408 which returned idle \nGDOT from stopped farms to the Treasury.\n\n**Expected effect:**\n\n- HSM buyback inventory receives a top-up from existing protocol income\n- No new HOLLAR is minted — this uses fees already earned\n- Buy pressure added to the stable pools from the HSM side\n- Combined with #452 (rate) and #453 (cap), this gives the peg a three-pronged \n  recovery: demand incentive + supply cap + direct buy pressure\n\n**Verification:**\n\nI have tested the call on a chopsticks fork of the current chain state. The \nHOLLAR transfers cleanly to the HSM address, no state inconsistencies, pool \nspot p\nrice unchanged. Happy to share the fork log if there is interest.\n\nI would appreciate feedback before putting this to a Root referendum. If there \nis support I will submit with a lookup proposal and note the preimage at \nenactment.\n\nStay hydrated :)\n```","bodyFormat":"markdown","tldr":"","labels":[],"linked":[],"author":{"account":{"accountId":"0xe4fc4e7331cb6751f40f03c8d3b2e7cbac115dc0241ab43dee31fbb36d484927","address":"16BEsNEpx4dfYZMFXYEMfGe51geCVPrtFW49J191MN9CPmsd","emoji":"🐮","tag":null,"identity":null,"profile":null},"legacyName":null},"authority":"native","revision":2,"createdAt":"2026-11-12T18:34:36.000Z","editedAt":null,"lastActivityAt":"2026-11-12T19:02:25.635Z","commentsCount":2,"updatesCount":1,"upvotes":0,"threadKey":"opengov:454","source":{"name":"subsquare","id":"6af606f8781cee3ac42b7ba5","cid":null,"removed":false},"bannerCid":null,"banner":null,"poll":null,"locked":false,"media":{},"hidden":false,"generation":"f0833529285a8e48"}