DeFi
Polkadot Treasury Fuels Hydration DeFi Project with $14.4 Million
Hydration, Polkadot’s first DeFi project, just received a substantial boost from Polkadot’s treasury in the form of 2 million DOT tokens, valued at $14.4 million. This capital injection is intended to strengthen the liquidity and commercial efficiency of Hydration’s revolutionary unilateral liquidity provisioning platform, Omnipool.
The allocation of DOT tokens serves a dual purpose. Half of the tokens, totaling one million DOT, will be used over a year to attract new liquidity into the Polkadot ecosystem.
Through incentivized rewards for liquidity providers (LPs), starting with APYs exceeding 200%, Hydration aims to attract users by offering rewards when they provide a unique asset and participate in incentivized farming. This initiative will incentivize various assets including native stablecoins, DOT, BTC, and other ecosystem coins.
The remaining 1 million DOT will be injected directly into Hydration Omnipool, increasing its existing liquidity pool, which already includes over 690,000 DOT and 560,000 vDOT. This capital injection aims to establish a robust and easily accessible native liquidity layer, benefiting the broader Polkadot 2.0 ecosystem in the long term.
Jakub Gregus, co-founder of Hydration, expressed his gratitude for Treasury’s support, emphasizing: “The Hydration Omnipool is designed to provide unparalleled efficiency and accessibility in crypto-asset trading, and this support from Treasury Polkadot is a testament to the potential impact. of our prospective approach.
It is important to note that the funds provided for Hydration Omnipool will be managed in a decentralized and non-custodial manner, under the supervision of the Polkadot protocol and OpenGov. This strategic initiative is poised to revolutionize liquidity provision within the Polkadot ecosystem, heralding a new standard for liquidity solutions across the shared blockchain network.
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