Summary
This proposal recommends launching a 3-month liquidity mining campaign focused on three key trading pairs to strengthen HydraGon’s liquidity, enhance asset utility, and support efficient value routing throughout the ecosystem.
Proposed pairs:
ETH/HYDRA on Base
WBTC/HYDRA on HydraGon
HyUSD/LYDRA on HydraGon
Each pair addresses a different strategic need — onboarding external capital, anchoring internal value, and enabling a yield-compounding stable/staking pathway. The proposal suggests allocating 15,000 HYDRA per month in total, distributed evenly across the three pools.
Objectives
• Attract ETH-native and Coinbase-aligned users via Base
• Enable BTC entry and exit on HydraGon without routing through stablecoins
• Activate LYDRA and HyUSD in productive, yield-aligned roles
• Promote deeper staking and increased HYDRA lockup
• Support protocol deflation through DAO-led LYDRA burning
Pool Breakdown
ETH/HYDRA (Base)
Base is an ideal environment for onboarding retail and ETH-native users due to its Coinbase integration and low fees. ETH is the most widely used DeFi asset and the native token of Base. Listing HYDRA in this environment makes it easier for new users to discover, buy, and enter the HydraGon ecosystem. This pool creates a clean on-ramp for external capital.
WBTC/HYDRA (HydraGon)
BTC is the largest crypto asset by market cap and a cornerstone of long-term capital. By pairing WBTC with HYDRA directly on HydraGon, the DAO can enable BTC-native value to flow into the ecosystem without unnecessary conversions. This helps establish HYDRA as a base trading asset within its own network and creates a hard-money route into on-chain liquidity.
HyUSD/LYDRA (HydraGon)
HyUSD is a stablecoin backed by sUSDe, a rebasing, yield-bearing asset. It grows in value over time. LYDRA is the liquid staking token of HYDRA, minted only when HYDRA is delegated. This pair links a yield-bearing stable with a staking derivative, creating a compounding effect. As HyUSD is swapped into LYDRA, capital flows indirectly into staked HYDRA, reinforcing demand for both the staking layer and the stable layer of the protocol.
Additionally, trading fees collected from the DAO’s position in this pool will be converted to LYDRA and permanently burned. This creates a deflationary mechanic that permanently reduces LYDRA supply, indirectly supports HYDRA staking, and aligns protocol revenue with long-term token value.
Rollout
This campaign would run for 3 months. Suggested metrics to track include TVL, trading volume, new wallet participation, LYDRA growth, and increased HYDRA staking. At the end of the term, the DAO can vote to extend, rotate, or adjust the incentives based on performance.
Discussion
This proposal is open to community input. Suggestions are welcome regarding pool selection, budget sizing, LM mechanics, or DAO LP strategies.
The selected pairs were chosen to form a complete, efficient liquidity routing structure without wasting incentives on fragmented pools. This structure connects HydraGon to external capital, anchors BTC on-chain, and creates a value loop between staking and stablecoins that grows over time.
Looking forward to feedback from the community! 
