We are getting inspiration from Olympus DAO. I was fascinated by the mission and mechanism of Olympus DAO and how strong its community had become. I also realized the problems that Olympus DAO had and I was thinking about ways to fix them. After several months of brainstorming and designing, we finally got the design and were ready to implement it.

How does it work

We are trying to make a crypto-native reserve currency with a rising floor price aka intrinsic value.

How to have a rising floor price?

We need to have the treasury income stream be larger than the coin minting stream. We will have a treasury that can mint coins with stable coins or LP. The higher the supply of the coins, the higher the minting price. As long as people are minting from our treasury, the floor price will rise.

How to keep people minting even though the minting price is even higher than the market price?

To encourage people to mint from our treasury, the last few people who minted will get the reward. With that reward, you can coins at the floor price. If nobody is interested in minting because the minting price is too high, we will reset the minting price and start the round again. We will have everlasting rounds of price-rising phases. At the start of each round, the minting price will be set to the market price.

How do we determine if we should end this round?

There is a timer ticking down inside the Minting contract. Whenever there is a person minting from the treasury and the number of coins minted meets the requirement. That person will be qualified for the potential reward when the timer ticks down to zero. At the same time, the timer will be increased by a certain amount.

When the timer comes down the 0, a new round will start.

How do we distribute rewards and what can we do with them?

When the round ne, the last 50 (subject to change) people will be rewarded with prHYDR coins. The amount of prHYDR coins that are rewarded is equal to the amount of HYDR minted when the round ends.

With prHYDR, you can mint HYDR at the floor price at any time. 1 prHYDR + floor price amount of stable coins = 1 HYDR

How do we calculate the floor price?

You will be able to mint HYDR with stable coins like USDT, aUSD, etc, or you can also mint HYDR with LP tokens like HYDR-aUSD.

The stablecoins that are used to mint HYDR will be held in the treasury to support the floor price. floor price = treasury / the supply of the HYDR

If a user is using LP token to mint HYDR, the value of LP token will NOT be counted into the holding of the floor price. It is because LP token is more volatile. If the price HYDR drops, the LP token price will drop with it, and so with the floor price. I want to have a floor price that will never drop, so LP tokens are not counted.

How do we increase the minting price

The minting price of the HYDR will increase as the supply of the coins goes up. If one HYDR is minted, the minting price will be increased by $0.00001 (subject to change). The minting price will keep going up until this round ends.

How we built it

Hardhat, ethers.js, REACT. We used jest for testing. hardhat for deploying to all the networks. We used React and React Hooks. We used react hooks for data fetching quite a lot. We integrated our frontend with wallet connect and coinbase wallet. We tried to deploy our contracts to Acala Test net. We used to do the CD.

Challenges we ran into

We had a problem using Metamask connecting to the Acala mandala local network. We had a problem deploying contracts to the Acala mandala public network.

Accomplishments that we're proud of

We made the app

What we learned

We learned how Polkadot, Substrate, and Acala work.

What's next for Hydra DAO

We are aiming to launch this year!

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