This proposal, if approved, will authorize runtime release `v35.0` - runtime version `hydradx/287`.

This upgrade includes significant changes to trading fees on Hydration, as detailed below - the overall ambition of these changes is to increase volume by reducing our fees and making Hydration a more competitive trading venue. It will also make dynamic fees more responsive after the increase has occured and adjusts referral fee parameters to more closely align them with the protocol:

### Asset fees

- **H2O will be minted to match asset fees that remain in the Omnipool** reducing the impact of IL on LPs and effectively increasing collected fees. Asset fees remaining in the Omnipool are effectively a liquidity add operation and therefore H2O behaviour for these transactions should match.
- Minimum asset fee to be reduced from `0.25%` to `0.15%`
- Asset fee decay to be increased from `0.001%` to `0.01%` *(escalated dynamic fees will reduce at 10x the speed they do currently)*
- Referral fee tier splits will be adjusted from the current splits detailed here: (https://docs.hydration.net/community/referrals) to the following:

| Tier | Rewards volume | Referrer | User | Staking |
| -------- | -------- | -------- | ---- | ---- |
| None     | --     | --    | -- | -- |
| 0     | 0 HDX     | 3%     | 2% | 45% |
| 1     | 305 HDX     | 6%     | 4% | 40% |
| 2    | 4,583 HDX     | 9%     | 6% | 35% |
| 3     | 61,111 HDX     | 12%     | 8% | 30% |
| 4     | 763,888 HDX     | 15%     | 10% | 25% |

### Protocol Fees

- **HubAssetImbalance will be removed** in favour of a revised H2O mint and burn mechanism which improves distribution of IL in favour of LPs. After 2+years of running the Omnipool with extensive modelling and analysis, we found that this will better match the intended outcome that the imbalance mechanism had. Together with the change in dynamic fees, this effectively increases fees collected by LPs by roughly `17%` on the base level even with lowered asset fees.
- (*15th feb edit*) 50% of protocol fees will be burned and 50% will be sent to the Treasury in this initial state. These parameters can be adjusted through governance at a later date. The intention is to create a `buy-back` pallet which will handle configured actions from protocol fees, asset fees & transaction fees in the future.
- Maximum protocol fee to be increased from `0.05%` to `0.25%`
- Protocol fee decay to be increased from `0.0005%` to `0.005%`

### Stableswap Fees

*Whilst not included in this upgrade, a separate referendum will follow to cut the trade fee in all active stablepools from `0.04%` to `0.02%`*

----

Full changes include:

- feat: omnipool fees rework by @enthusiastmartin in #987
- feat: support to receive bifrost oracle updates by @enthusiastmartin in #1016
- fix: remove stableswap ed check by @dmoka in #1003
- **fix: lower staking minimal slash by @martinfridrich in #1020** - allowing for increases in stake of less than 1% without experiencing time slashing (down from 7% previously)
- fix: unified events max callstack by @dmoka in #1014
- chore: adjust trading fees by @vgantchev in #1019

Github links to PRs and full details can be found here: https://github.com/galacticcouncil/hydration-node/releases/tag/v35.0.0

#22 Runtime release v35.0 - TRADE FEE OVERHAUL