- The top DeFi project on Polkadot, Hydration, is happy to announce that it has received 2 million DOT tokens from the Polkadot treasury, which is worth $14.4 million.
- The funds will be utilized to enhance the trading efficiency and liquidity of Hydration’s single-sided liquidity provisioning system, Omnipool.
There are two methods for distributing DOT tokens. One million DOT will be utilized to add fresh liquidity to the Polkadot ecosystem over the course of a year.
Initial payouts to liquidity providers (LPs) will surpass 200% annual percentage yield. Because of the single-sided LP nature of the Hydration Omnopool, users will start earning rewards as soon as they join an incentives farm and donate a single asset. DOT, BTC, several ecosystem coins, native stablecoins, and other assets are being rewarded.
Treasury Proposal #730 states that the remaining one million DOT will be directly put into the Hydration Omnipool to support the development of a strong and easily accessible layer of native liquidity, which will benefit the whole Polkadot 2.0 ecosystem. An existing 690k+ dot (AND 560k+ vDOT) that was previously LPed into the Hydration Omnipool is enhanced by the capital.
“This generous allocation from the Polkadot treasury marks a pivotal moment for Hydration,” stated Jakub Gregus, co-founder of Hydration. We are able to greatly deepen our liquidity with this much-needed cash infusion, which is essential for both our expansion and the ongoing wellbeing of the Polkadot ecosystem as a whole.
With its unmatched efficiency and accessibility for trading crypto-assets, the Hydration Omnipool is sure to make a big difference. The Polkadot Treasury’s backing is evidence of this potential influence.
The decentralized, non-custodial funding for the Hydration Omnipool will remain under the control of OpenGov and the Polkadot Protocol.
It is anticipated that this strategic endeavor would lead to notable progress in the provision and management of liquidity within the Polkadot ecosystem, thereby establishing a new benchmark for liquidity solutions inside the shared blockchain network.
Concerning Hydration
Hydration is the main liquidity protocol used by Polkadot. Making DeFi easy to use, efficient, and unstoppable is its main objective. Hydration integrates lending, swaps, and a stablecoin into a single, scalable appchain to do this. Hydration provides Polkadot’s most efficient liquidity venue with automated trades (DCA), limit orders, and single-sided LPing.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
