The leading DeFi project on Polkadot, Hydration, is excited to announce that it has been awarded 2 million DOT tokens from the Polkadot treasury, which is worth $14.4 million. The funds will be used to improve Omnipool, Hydration’s single-sided liquidity provisioning platform, in terms of both liquidity and trading efficiency.
The DOT tokens are distributed in two ways. Over the course of a year, one million DOT will be used to bring new liquidity into the Polkadot ecosystem. Liquidity Providers (LPs) will receive initial payouts that exceed 200% APY. Users will begin to get rewards upon supplying a single asset and joining an incentives farm, owing to the Hydration Omnopool’s one-sided LP architecture. The assets that are being rewarded include native stablecoins, DOT, BTC, and many ecosystem coins.
In order to facilitate the development of a strong, easily accessible layer of native liquidity that would eventually benefit the larger Polkadot 2.0 ecosystem, the last one million DOT will be injected straight into the Hydration Omnipool (Treasury Proposal #730). A current 690k+ dot (AND 560k+ vDOT) that has already been LPed into the Hydration Omnipool is enhanced by the capital.
Hydration co-founder Jakub Gregus said:
“This generous allocation from the Polkadot treasury marks a pivotal moment for Hydration. With this welcome injection of liquidity, we are able to significantly deepen our liquidity, which is vital not just for our growth but also for the continued health of the entire Polkadot ecosystem The Hydration Omnipool is designed to provide unparalleled efficiency and accessibility in trading crypto-assets, and this support from the Polkadot treasury is a testament to the potential impact of our forward-looking approach.”
The Polkadot Protocol and OpenGov will continue to have authority over the decentralized, non-custodial funding for the Hydration Omnipool.
It is anticipated that this strategic endeavor would lead to notable progress in the provision and management of liquidity within the Polkadot ecosystem, therefore establishing a new benchmark for liquidity solutions inside the shared blockchain network.
