## Summary

This proposal brings ~1.1M USDC returned to Hydration's Asset Hub sovereign account back into the Hydration Treasury, unwinds the legacy aSIGIL placeholder position, repays Treasury debt in the money market, and puts the remaining USDC to work converting into HOLLAR.

All actions execute under the Treasury account via Root.

## Actions

**Immediate (on enactment):**

1. **Repatriate USDC** — an XCM `reserve transfer` instructs Hydration's sibling sovereign account on Polkadot Asset Hub to send **1,105,840.38 USDC** to the Hydration Treasury (asset 22). This is a fully reserve-backed transfer (not a mint): the USDC is withdrawn on Asset Hub and the matching amount is issued on Hydration to the Treasury.

2. **Unwind aSIGIL** — the Treasury's **1,100,000 aSIGIL** position is withdrawn from the money market back to SIGIL, and the resulting **1,100,000 SIGIL is burned** (set to 0). The aSIGIL position was only ever a representation of the stablecoins now being returned, so it is retired in full.

**Scheduled (~20 blocks / ~2 min later, once the repatriated USDC has settled):**

3. **Repay USDC debt in full** — repays the Treasury's entire USDC variable-debt position in the money market (`MAX`), clearing it to **0**.

4. **Acquire 500,000 HOLLAR via the HSM** — supplies 500,000 USDC to obtain aUSDC, then sells it to the HOLLAR Stability Module for **500,000 HOLLAR** at the $1 peg.

5. **Repay 500,000 HOLLAR debt** — uses that HOLLAR to repay 500,000 of the Treasury's HOLLAR debt.

6. **Rolling DCA into HOLLAR** — schedules a recurring DCA that converts the remaining repatriated USDC into HOLLAR at **2,000 USDC every 10 blocks**, routed `USDC → aUSDC → HOLLAR` through the HOLLAR/aUSDC stableswap pool, rebalancing the pool toward peg.

## Net effect on the Treasury

| | Before | After |
|---|---|---|
| USDC (asset 22) | ~162k | repatriated +1.106M, then deployed across repay / HSM / rolling DCA |
| USDC money-market debt | ~251k | **0** (cleared) |
| HOLLAR money-market debt | ~955k | **~455k** (−500k) |
| aSIGIL / SIGIL | 1.1M aSIGIL | **0 / 0** (unwound & burned) |

## Verification

The full proposal was simulated end-to-end on a forked Hydration + Polkadot Asset Hub environment (Chopsticks): the XCM round-trip delivers the USDC, the aSIGIL position and SIGIL are zeroed, the USDC debt is cleared to 0, the HOLLAR debt is reduced by exactly 500,000, and the rolling DCA is created. All legs executed successfully.

**Track:** Root
**Preimage hash:** `0xf587b204189156038116e1d7654fc3411c2b676acdea07f37a4179105ae2cdad`


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Repatriate USDC, unwind the aSIGIL position, repay Treasury debt & accumulate HOLLAR

Democracy

#355 Repatriate USDC, unwind the aSIGIL position, repay Treasury debt & accumulate HOLLAR