Two-phase execution
Hydration said the funding will increase the liquidity and efficiency of Omnipool's one-sided liquidity offering platform. Polkadot Treasury has allocated 2 million DOT, worth $14.4 million, to increase the liquidity of the DeFi project Hydration, according to a June 10 statement shared with CryptoSlate.
The project states that the funds will increase the liquidity and efficiency of the one-sided liquidity provision platform, Omnipool. This latest funding is in line with Polkadot's current efforts to increase and expand network adoption across the globe. Over the past few weeks, blockchain's Web 3 Foundation has funded several projects, including PolkaPort East and Accelerate Polkadot.
Two-phase execution
This allocation will be implemented in two stages. The first stage will disburse 1 million DOT to attract new liquidity to the Polkadot ecosystem. This includes rewards for liquidity providers (LPs) with an annual percentage yield (APY) exceeding 200%. Hydration's Omnipool single-sided LP design will facilitate this reward system. Users can earn rewards by depositing single assets or joining incentive farms with stablecoins, DOT, and Bitcoin.
The remaining 1 million DOT will support Hydration Omnipool, enhancing the native liquidity layer for the Polkadot 2.0 ecosystem. This is in addition to the 690,000 DOT already deposited into the Hydration Omnipool. This funding aims to advance liquidity management on the Polkadot network, setting a new standard in blockchain technology. Polkadot Protocol and OpenGov will administer and manage the funds.
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