36

Polkadot’s leading DeFi project, Hydration, is excited to announce its receipt of 2 million DOT tokens (equivalent to $14.4 million) from the Polkadot treasury. These funds are designated to enhance liquidity and trading efficiency for Hydration’s single-sided liquidity provisioning platform, Omnipool.

Allocation and Utilization of DOT Tokens

The allocation of the 2 million DOT tokens is divided into two parts. One million DOT will be used over the next year to attract new liquidity to the Polkadot ecosystem. Initial rewards for Liquidity Providers (LPs) are expected to exceed 200% APY. With Hydration Omnipool’s single-sided LP design, users can start earning rewards by providing a single asset and joining an incentives farm. Various assets, including native stablecoins, DOT, BTC, and several ecosystem coins, will be incentivized.

Say hello to a new era of DeFi on Polkadot 💦

The Polkadot Community has voted to significantly enhance the DeFi experience in the ecosystem, and will allocate 2M DOT from the treasury to a leading liquidity protocol: @hydration_net

Everything you need to know about the… pic.twitter.com/lQLQAozUag

— Polkadot (@Polkadot) June 10, 2024

The other one million DOT will be directly injected into the Hydration Omnipool. This injection aims to create a robust and accessible layer of native liquidity that will support the broader Polkadot 2.0 ecosystem over time, as outlined in Treasury Proposal #730. This new capital adds to an existing pool of over 690k DOT and 560k vDOT already provided in the Hydration Omnipool.

Statements and Strategic Importance

Jakub Gregus, co-founder of Hydration, stated, “This generous allocation from the Polkadot treasury is a pivotal moment for Hydration. With this substantial liquidity injection, we can significantly enhance our liquidity depth, which is crucial for our growth and the health of the entire Polkadot ecosystem.”

Gregus added, “The Hydration Omnipool is designed to offer unparalleled efficiency and accessibility in trading crypto-assets. This support from the Polkadot treasury underscores the potential impact of our forward-looking approach.”

HydraDX is now Hydration

Our mission remains the same: Making finance efficient, simple, and unstoppable

With Swaps, Lending and the Hollar stablecoin, we unite the holy trinity of DeFi under the roof of a scalable appchain

The future is hydratedhttps://t.co/lSEWRyeeEW pic.twitter.com/ryOXFcT5Mm

— Hydration (@hydration_net) June 5, 2024

Future Prospects

The funding provided for the Hydration Omnipool, managed 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 liquidity provision and management within the Polkadot ecosystem, setting a new standard for liquidity solutions in the shared blockchain network.