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 platform for single-sided liquidity provision, focusing on improving both liquidity and trading efficiency.
The distribution of the DOT tokens will occur in two ways. One million DOT will be allocated over a year to attract new liquidity to the Polkadot ecosystem, offering Liquidity Providers (LPs) initial payouts exceeding 200% APY. Users will start receiving rewards upon supplying a single asset and participating in incentives farming, thanks to Hydration Omnipool’s one-sided LP model. The rewarded assets include native stablecoins, DOT, BTC, and various ecosystem coins.
To support the development of a robust, easily accessible layer of native liquidity that will benefit the broader Polkadot 2.0 ecosystem, the remaining one million DOT will be injected directly into the Hydration Omnipool (Treasury Proposal #730). This capital will enhance the current 690k+ DOT (and 560k+ vDOT) already LPed into the Hydration Omnipool.
Co-founder of Hydration, Jakub Gregus, stated:
“The Polkadot Protocol and OpenGov will retain control over the decentralized, non-custodial funding for the Hydration Omnipool.”
This strategic initiative is expected to significantly advance liquidity provision and management within the Polkadot ecosystem, setting a new standard for liquidity solutions in the shared blockchain network.
