Polkadot allocates $14.4M to grow DeFi with Hydration
Gibraltar, Gibraltar, June 10, 2024, Chainwire.
Polkadot's leading DeFi project – Hydration is excited to announce the issuance of 2 million dot (equivalent to $14.4 million) tokens from the Polkadot treasury. The funding has been allocated to strengthen the liquidity and trading efficiency of Hydration's one-way liquidation platform Omnipool.
The allocation of DOT tokens is two-fold. A million DOT will be spent over a year to attract new liquidity to the Polkadot ecosystem, with initial rewards for Liquidity Providers (LPs) exceeding the 200% APY mark. Thanks to Hydration OmniPool's one-sided LP design, users start receiving rewards after submitting an asset and joining the incentive farm, with various assets being incentivized in native stable coin, DOT, BTC and several ecosystem coins.
The remaining one million DOTs will be invested directly into the Hydration Omnipool, with the goal of creating a robust and accessible domestic fluid layer to benefit the broader PolkaDOT 2.0 ecosystem over time (Treasury Proposal #730). The cap adds to the Hydration Omnipool already at 690k+ points (and 560k+ vDOT).
Jakub Grigos, founder of Hydration, said, “This generous allocation from the Polkadot Treasury is a critical moment for Hydration. With this welcome injection of liquidity, we were able to significantly increase our liquidity, which is essential not only for our growth, but for the health of the entire Polkadot ecosystem.
“The Hydration OmniPool is designed to provide unparalleled efficiency and accessibility in the trading of crypto-assets, and this support from Polkadot Treasury is a testament to the impact of our forward-looking approach.”
Funding for the Hydration Omnipool remains decentralized and non-custodial under the control of the Polkadot protocol and OpenGov.
This strategic initiative is expected to drive significant advances in how liquidity is provided and managed within the Polkadot ecosystem, setting a new standard for liquidity solutions in a shared blockchain network.
About hydration
Hydration is the primary fluid protocol on Polkadot. The mission is to make Defy efficient, simple and unstoppable. To achieve this, Hydration will unite swaps, loans and stablecoins under a single scalable appchain roof. Hydration provides the most efficient liquidity position on Polkadot by offering single-sided LPing, automated trades (DCA) and limit orders.
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