Hello Hydrators!

As most of you will be aware, **our first parachain slot will come to an end at the beginning of January**.

We agreed as a community as part of [referendum #43](https://hydradx.subsquare.io/democracy/referenda/43) that we could diversify up to 1M DAI into DOT in preparation for bidding on a second parachain slot (approximately 216,000 DOT at current prices) - the fortunate news is that currently slots are generally going for <70,000 DOT (with the exception of Crowdloans which typically overpay); so whilst [DCAs for DOT are ongoing](https://hydradx.subsquare.io/democracy/referenda/86), we should have sufficient DOT already in the Treasury to cover this requirement.

Intergalactic Council along the with HydraDX Council have looked at and discussed a range of methods for executing these auctions bids in the most permissionless yet dynamic way possible - with the intention to reduce counterparty risk but also not overpay for the slot. The best method to achieve these goals is as follows:

- Create a **pure proxy on Polkadot** which we will transfer (through governance) e.g. 100,000 DOT from HydraDX Treasury
- Assign parachain 2034 (HydraDX) as `ANY PROXY`
- Assign a 2/6 multisig of the following HydraDX council members as `AUCTION PROXY`:
    - Jak-Pan
    - mrq
    - lolmcshizz
    - Leemo
    - Jose Crypto
    - Dakauaiguy
- The multisig would then be able to **bid on upcoming auctions** from those DOT, **without having any capability to move the funds**

I have created the following schema to demonstrate the setup.
![image.png](https://subsquare.infura-ipfs.io/ipfs/QmWcZwPDgHQehTnoHbHcfG4aRmckd9SvVAFGuGoKSbGHHG)

Before taking the next steps on-chain, I wanted to have a discussion to answer any questions that may arise around this process. The intention will then be to have everything ready to begin bidding for a slot from auction #55 onwards (once Parallel have overpaid for #54).

#124 Parachain slot renewal