DeFi
Polkadot Treasury allocates $14.4 million to support DeFi Hydration project
Peas The Treasury allocated 2 million DOT, valued at $14.4 million, to improve the liquidity of the DeFi Hydration project, according to a June 10 statement shared with CryptoSlate.
The project says the funds will increase the liquidity and efficiency of its unilateral liquidity provisioning platform, Omnipool.
This latest funding aligns with Polkadot’s ongoing efforts to improve and expand the network’s adoption worldwide. Over the past few weeks, the Web 3 Blockchain Foundation has funded several projects, including PolkaPort East And Accelerate Polkadot.
Two-phase execution
This allocation will be executed in two phases. The first phase will unlock 1 million DOT to attract new liquidity to the Polkadot ecosystem. This includes rewards for liquidity providers (LPs) with an annual percentage yield (APY) greater than 200%.
Hydration Omnipool’s one-sided LP design will facilitate this reward system. Users can earn rewards by depositing unique assets or joining an incentive farm with stablecoins, DOT and Bitcoin.
The remaining 1 million DOT will support Hydration Omnipool, enhancing the native liquidity layer of the Polkadot 2.0 ecosystem. This is in addition to the 690,000 DOT already deposited into Hydration Omnipool.
This funding aims to advance liquidity management on the Polkadot network, setting a new standard in blockchain technology. The Polkadot protocol and OpenGov will administer and manage the funds.
Jakub Gregus, co-founder of Hydration, described this allocation as a pivotal moment for the project. He emphasized that this liquidity injection is crucial for the health of the Polkadot ecosystem. He stated:
“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.”
Notably, this funding came less than a week after the project was renamed HydraDX. According to its website, the total value of assets locked on the platform is $28 million and the trading volume is $50 million over the last 30 days.
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