In Gibraltar on June 10th, 2024, Chainwire reported that Hydration, the top DeFi project on Polkadot, is excited to announce that it has received 2 million DOT tokens (equivalent to $14.4 million) from the Polkadot treasury. These funds are intended to enhance the liquidity and trading efficiency of Hydration’s Omnipool, a platform for single-sided liquidity provisioning.
The allocation of the DOT tokens serves a dual purpose. One million DOT will be used over the next year to attract new liquidity to the Polkadot ecosystem, offering initial rewards for Liquidity Providers (LPs) exceeding 200% APY. With the unique single-sided LP structure of the Hydration Omnipool, users can earn rewards by providing a single asset and participating in an incentives program that covers various assets such as native stablecoins, DOT, BTC, and other ecosystem coins.
The remaining one million DOT will be directly injected into the Hydration Omnipool itself, aiming to establish a strong, easily accessible layer of native liquidity to benefit the broader Polkadot 2.0 ecosystem in the long term (Treasury Proposal #730). This funding supplements the existing 690k+ DOT and 560k+ vDOT already LPed into the Hydration Omnipool.
Co-founder of Hydration, Jakub Gregus, expressed his gratitude for the allocation from the Polkadot treasury, highlighting the significance of the increased liquidity for both the growth of Hydration and the overall health of the Polkadot ecosystem. He emphasized that the Hydration Omnipool’s design offers exceptional efficiency and accessibility for trading crypto-assets, and the support from the Polkadot treasury underscores the potential impact of their innovative approach.
The funding provided for the Hydration Omnipool will be managed in a decentralized and non-custodial manner, under the control of the Polkadot Protocol and OpenGov.
This strategic initiative is expected to bring significant advancements in liquidity provision and management within the Polkadot ecosystem, setting a new standard for liquidity solutions in the shared blockchain network.
About Hydration
Hydration is the primary liquidity protocol on Polkadot, dedicated to making DeFi efficient, simple, and unstoppable. By combining swaps, lending, and a stablecoin currency in a single, scalable appchain, Hydration offers single-sided LPing, automated trades (DCA), and limit orders, providing the most efficient liquidity platform on Polkadot.
Contact
Ecosystem LeadBen MIntergalactic Limited
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