[Proposal: MB 123] Withdraw and Return ~430,000 GLMR of Treasury-Owned Funds from Hydration Omnipool
Over two years ago, Proposal #12 was passed to list GLMR in the HydraDX Omnipool. As part of this initiative, 500,000 GLMR were transferred cross-chain to Moonbeam Treasury’s Sovereign Account on Hydration and added to the Omnipool to help bootstrap GLMR liquidity.
Since that time, the LP position has experienced notable impermanent loss and earned no yield, as the funds were not included in any farming strategy. Given that the pool now contains over 30 million GLMR, the Treasury’s original contribution represents only about 1/60th of the total — signifying that the bootstrapping goal has been effectively achieved.
Currently our position holds approximately 442,746 GLMR and can be viewed here. With no immediate plans to farm or reallocate this capital within Hydration, and given the high IL, we propose to withdraw and return the funds to the Treasury.
While some have raised concerns that a future decline in Omnipool incentives might reduce GLMR liquidity, we do not believe this justifies retaining the position. The initial goal—to support early liquidity — has been met. We now recommend prioritizing Treasury funds for other strategic purposes.
GLMR liquidity bootstrap mission: complete
The XCM code was written and tested in Chopsticks by our XCM expert @AlbertoV19
Note on Withdrawal Amount:
As the exact amount of GLMR that will be returned upon withdrawal of the LP cannot be precisely determined in advance, we propose to include a conservative, “safe” amount of GLMR in the code at this time to ensure the call won’t fail. The remaining GLMR will stay in our Sovereign Account in Hydration and be returned alongside the upcoming root proposal to retrieve USDC from the ongoing DCA program. This approach avoids the need for an additional root proposal.
Feel free to reach out to the @TreasuryCouncil with feedback, anytime 