Decentralized finance (DeFi) project Hydration, built on Polkadot, announced that it has received an allocation of 2 million DOT, equivalent to $14.4 million, from the Polkadot treasury. These funds are designated to enhance the liquidity and trading efficiency of Hydration’s single-sided liquidity provisioning platform, Omnipool.
“This generous allocation from the Polkadot treasury marks a pivotal moment for Hydration. With this welcome injection of liquidity, we are able to significantly deepen our liquidity, which is vital not just for our growth but also for the continued health of the entire Polkadot ecosystem,” said Jakub Gregus, co-founder of Hydration. “The Hydration Omnipool is designed to provide unparalleled efficiency and accessibility in trading crypto-assets, and this support from the Polkadot treasury is a testament to the potential impact of our forward-looking approach.”
The allocation of the DOT tokens serves two purposes. One million DOT will be utilized over the course of one year to attract new liquidity to the Polkadot ecosystem, with initial rewards for Liquidity Providers (LPs) expected to exceed 200% annual percentage yield (APY).
Due to the single-sided LP design of the Hydration Omnipool, users can begin receiving rewards after providing a single asset and joining an incentives farm. Various assets, including native stablecoins, DOT, BTC, and several ecosystem coins, will be incentivized.
The remaining one million DOT will be directly injected into the Hydration Omnipool with the aim of establishing a strong and accessible layer of native liquidity to benefit the broader Polkadot 2.0 ecosystem over time. This capital will supplement the existing funds, which include over 690,000 DOT and more than 560,000 vDOT already provided to the Hydration Omnipool.
The funding for the Hydration Omnipool, provided in a decentralized and non-custodial manner, will remain under the governance of the Polkadot Protocol and OpenGov.
Hydration And Astar Network Achieve Milestone With Over 5.5M ASTR Tokens Locked In Omnipool
Hydration is the primary liquidity protocol on Polkadot, aiming to make DeFi efficient, simple, and resilient. In order to accomplish this, it integrates swaps, lending, and a stablecoin within a single, scalable appchain. With features like single-sided LPing, automated trades (DCA), and limit orders, Hydration offers the most efficient liquidity platform on Polkadot.
Recently, the Hydration and Astar Network communities have collaboratively achieved a milestone of over 5.5 million ASTR tokens locked in Hydration’s Omnipool. Locking liquidity in the Hydration Omnipool facilitates more efficient DeFi swaps for the ASTR token globally.
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