Polkadot allots more than 14 million in DOT tokens to boost liquidity through Hydration
Hydration, a DeFi project operating within the Polkadot ecosystem, has secured a generous grant of 2 million DOT tokens, valued at $14.4 million, to enhance the liquidity and trading efficiency of its liquidity provisioning platform, Omnipool. This information was shared with Finbold on June 10.
The first million DOT will be allocated over a one-year period to attract new liquidity to the Polkadot ecosystem, promising Liquidity Providers (LPs) initial rewards exceeding 200% APY. Hydration’s unique single-sided LP system allows users to contribute a single asset and participate in an incentives farm, with rewards available for various assets, including native stablecoins.
The remaining tokens will be utilized to bolster the Hydration Omnipool, establishing a strong and accessible layer of native liquidity that will benefit the broader Polkadot 2.0 ecosystem. This new capital will complement the existing liquidity of over 690,000 DOT and 560,000 vDOT already present in the Hydration Omnipool.
Jakub Gregus, co-founder of Hydration, highlighted the significance of this funding, stating: “This generous allocation from the Polkadot treasury is a crucial moment for Hydration. With this injection of liquidity, we can significantly deepen our liquidity, which is essential not only for our growth but also for the overall health of the Polkadot ecosystem.”
The management of the funding for the Hydration Omnipool will be decentralized and non-custodial, ensuring it remains under the control of the Polkadot Protocol and OpenGov. Gregus emphasized: “The Hydration Omnipool aims to offer unparalleled efficiency and accessibility in trading crypto-assets, and the support from the Polkadot treasury validates the potential impact of our innovative approach.”
This strategic initiative is poised to drive significant progress in how liquidity is provided and managed within the Polkadot ecosystem. As the primary liquidity protocol on Polkadot, Hydration is set to establish a new standard for liquidity solutions within the shared blockchain network.