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Polkadot Allocates $14.4M to Boost DeFi with Hydration

Published 06/10/2024, 09:00 AM
Updated 06/10/2024, 09:30 AM
Polkadot Allocates $14.4M to Boost DeFi with Hydration
pDOTn/USD
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Gibraltar, Gibraltar, June 10th, 2024, Chainwire

Polkadot’s leading DeFi project - Hydration, is thrilled to announce that it has been awarded 2 million DOT (equivalent to $14.4 million) tokens from the Polkadot treasury. The funds have been earmarked to bolster the liquidity and trading efficiency of Hydration’s single-sided liquidity provisioning platform Omnipool.

The allocation of the DOT tokens is twofold. One million DOT will be spent over the course of one year to attract fresh liquidity to the Polkadot ecosystem, with initial rewards for Liquidity Providers (LPs) ranging above the 200% APY mark. Thanks to the single-sided LP design of the Hydration Omnopool, users will start receiving rewards after providing a single asset and joining an incentives farm, with various assets being incentivized including native stablecoins, DOT, BTC and several ecosystem coins.

The remaining one million DOT will be injected directly into the Hydration Omnipool itself, with the goal of supporting the creation of a robust, accessible layer of native liquidity to benefit the broader Polkadot 2.0 ecosystem over time (Treasury Proposal #730). The capital adds to an existing 690k+ dot (AND 560k+ vDOT) already LPed into the Hydration Omnipool.

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 funding provided for the Hydration Omnipool, provided in a decentralized and non-custodial manner, will remain under the control of the Polkadot Protocol and OpenGov.

This strategic initiative is expected to drive significant advancements in how liquidity is provided and managed within the Polkadot ecosystem, setting a new standard for liquidity solutions in the shared blockchain network.

About Hydration

Hydration is the main liquidity protocol on Polkadot. Its mission is to make DeFi efficient, simple, and unstoppable. To achieve this, Hydration unites swaps, lending and a stablecoin currency under the roof of a single, scalable appchain. Offering single-sided LPing, automated trades (DCA) and limit orders, Hydration provides the most efficient liquidity venue on Polkadot.

ContactEcosystem LeadBen MIntergalactic Limitedsaas@hydradx.io

This article was originally published on Chainwire

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