FAQ
How long do projects keep a liquidity deployment?
Projects receive liquidity at the end of each round and keep it for the duration specified in theid bid.
What happens to the PoL yield generated by the liquidity?
The yields derived from swap fees, external incentives, lending, superfluid staking, etc., is owned by and sent back to the Hydro Treasury for redeployment as additional capture. In a future upgrade there will be features to further share PoL yield rewards with users.
What are the key requirements for submitting a bid?
Projects must:
- Use the bid template.
- Ensure bids meet the Hydro committee’s guidelines, including details on liquidity usage, risk mitigation, and monitoring.
What is the timeline for submitting and processing a bid?
- Draft the bid using the provided template.
- Schedule a review meeting with the Hydro committee.
- Finalize the bid and convert it to Markdown.
- Upload the bid and tribute to the Hydro smart contract.
- Hydro team adds the bid to the front-end for voting.
What happens during deployment testing?
Deployment testing ensures the feasibility and security of liquidity deployments:
- Tests are conducted in the final 7 days of the round.
- Bidders must provide support, including queries and configurations.
- Issues must be resolved within 7 days after the round ends.
What are the consequences if issues are not resolved?
If issues are unresolved:
- The bid may be forfeited, and the project will lose its opportunity to deploy liquidity.
- In specific cases, the Hydro committee may approve a 30-day deployment extension if sufficient capital is available.
How are tributes handled?
Tributes are managed through the Hydro smart contract:
- Tributes are locked during the bid and distributed after the round to voters of successful bids.
- If the bid fails, tributes are refunded.
What accountability measures do projects need to follow?
Projects must:
- Submit tributes on time and resolve issues promptly.
- Cooperate with deployment tests and ensure accurate monitoring