DeFi
Polkadot announces $14.4 million allocation to boost DeFi with hydration
Hydration, the leading DeFi project on Polkadot, is excited to announce that it has received a generous grant of 2 million DOT tokens (worth $14.4 million) from Polkadot’s treasury. The funds will improve the liquidity and business efficiency of Hydration’s unilateral liquidity provisioning platform, Omnipool.
There are two main aspects to consider regarding the distribution of DOT tokens. A total of 1 million DOT will be allocated over one year to encourage new liquidity into the Polkadot ecosystem. Liquidity providers (LPs) will be rewarded with attractive initial yields, exceeding the 200% APY threshold. Hydration Omnipool’s unique single-sided LP design allows users to start earning rewards when they contribute a single asset and join an incentive farm. The platform promotes various assets including native stablecoins, DOT, BTC, and several ecosystem coins.
The remaining million DOT will be injected directly into the Hydration Omnipool. This injection aims to support the creation of a robust and easily accessible native liquidity layer, which will benefit the broader Polkadot 2.0 ecosystem in the long term, as outlined in Treasury Proposal #730. The capital contributes to an already impressive amount of over 690,000 points (AND over 560,000 vDOT) which has been integrated into Omnipool Hydration.
Hydration co-founder Jakub Gregus said: “This generous allocation from Polkadot’s treasury marks a pivotal moment for Hydration. With this welcome injection of liquidity, we are able to significantly increase our liquidity, which is vital not only for our growth but also for the continued health of the entire Polkadot ecosystem.
“Hydration Omnipool is designed to deliver unparalleled efficiency and accessibility in crypto-asset trading, and this support from Polkadot Treasury is a testament to the potential impact of our forward-looking approach.”
The Polkadot protocol and OpenGov will decentralize and maintain funding for the Hydration Omnipool in a non-custodial manner.
This strategic initiative will revolutionize the provision and management of liquidity within the Polkadot ecosystem, setting a revolutionary benchmark for liquidity solutions in the shared blockchain network.