Polkadot Treasury recently allocated 2 million DOT, valued at $14.4 million, to enhance the liquidity of the DeFi project Hydration. The funds will be used to boost the liquidity and efficiency of its single-sided liquidity provisioning platform, Omnipool. This funding aligns with Polkadot’s efforts to improve and expand network adoption worldwide, with recent funding for projects such as PolkaPort East and Accelerate Polkadot.
The allocation will be executed in two phases. The first phase will disburse 1 million DOT to attract new liquidity to the Polkadot ecosystem, offering rewards for liquidity providers with an annual percentage yield exceeding 200%. Hydration’s Omnipool’s single-sided LP design will facilitate this reward system, allowing users to earn rewards by depositing single assets or joining an incentive farm with stablecoins, DOT, and Bitcoin.
The remaining 1 million DOT will support the Hydration Omnipool, enhancing the native liquidity layer for the Polkadot 2.0 ecosystem in addition to the 690,000 DOT already deposited. This funding aims to advance liquidity management on the Polkadot network, with the Polkadot Protocol and OpenGov administering and managing the funds. Jakub Gregus, co-founder of Hydration, emphasized the importance of this liquidity injection for the health of the Polkadot ecosystem.
The funding arrived shortly after the project was renamed from HydraDX. The total value of assets locked on the platform is $28 million, with a trading volume of $50 million in the last 30 days. It is essential to note that CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem, while maintaining full editorial independence and control over the content published.
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