Polkadot distributes more than 14 million in DOT tokens for enhancing liquidity through Hydration
Hydration, a DeFi project operating within the Polkadot ecosystem, has secured 2 million DOT tokens, valued at $14.4 million, to optimize the liquidity and trading efficiency of its Omnipool platform, as revealed to Finbold on June 10.
The initial million DOT will be distributed over a year to attract new liquidity to the Polkadot ecosystem, offering Liquidity Providers (LPs) initial rewards exceeding 200% APY. Hydration’s unique single-sided LP system allows users to supply a single asset and participate in an incentives program, with rewards available for a variety of assets, including native stablecoins.
The remaining tokens will be allocated to the Hydration Omnipool to establish a strong and accessible layer of native liquidity, benefiting the broader Polkadot 2.0 ecosystem. This new capital complements the existing liquidity of over 690,000 DOT and 560,000 vDOT already in the Hydration Omnipool.
Jakub Gregus, co-founder of Hydration, highlighted the importance of this funding, stating, “This generous allocation from the Polkadot treasury is a pivotal moment for Hydration. With this injection of liquidity, we can significantly deepen our liquidity, crucial not only for our growth but also for the overall health of the Polkadot ecosystem.”
The funding for the Hydration Omnipool will be managed in a decentralized, non-custodial manner, under the supervision of the Polkadot Protocol and OpenGov. Gregus further added, “The Hydration Omnipool aims to offer unparalleled efficiency and accessibility in trading crypto-assets, and the support from the Polkadot treasury underscores the potential impact of our innovative approach.”
This strategic initiative is set to drive significant progress in how liquidity is provided and managed within the Polkadot ecosystem. As the primary liquidity protocol on Polkadot, Hydration is positioned to establish a new standard for liquidity solutions in the interconnected blockchain network.
