Hydration, the top DeFi project on Polkadot, is thrilled to announce the receipt of 2 million DOT tokens from the Polkadot treasury, valued at $14.4 million. These funds will be utilized to enhance Omnipool, Hydration’s innovative platform for single-sided liquidity provision, with a focus on boosting both liquidity levels and trading efficiency.
The DOT tokens will be allocated in two distinct ways. To begin with, one million DOT will be utilized over the span of a year to attract fresh liquidity into the Polkadot ecosystem. Liquidity Providers (LPs) will receive initial payouts exceeding 200% APY, incentivizing users to participate by supplying a single asset and engaging in incentives farms through the unique one-sided LP structure of Hydration Omnipool. Rewards will be distributed for assets such as native stablecoins, DOT, BTC, and various ecosystem coins.
The remaining one million DOT will be injected directly into the Hydration Omnipool (Treasury Proposal #730) in order to cultivate a robust, easily accessible layer of native liquidity that will ultimately benefit the broader Polkadot 2.0 ecosystem. This injection of capital will augment the current 690k+ DOT (along with 560k+ vDOT) that has already been LPed into the Hydration Omnipool.
Co-founder of Hydration, Jakub Gregus, stated:
“The Polkadot Protocol and OpenGov will maintain oversight of the decentralized, non-custodial funding for the Hydration Omnipool.”
It is expected that this strategic initiative will drive significant advancements in liquidity provision and management within the Polkadot ecosystem, setting a new standard for liquidity solutions within the interconnected blockchain network.