Polkadot's prominent DeFi project, Hydration, is excited to announce the reception of 2 million DOT tokens (equivalent to $14.4 million) from the Polkadot treasury. These funds are designated to enhance liquidity and trading efficiency on Hydration's single-sided liquidity provision platform, Omnipool.

The allocation of DOT tokens serves a dual purpose. One million DOT will be utilized over the span of a year to attract new liquidity to the Polkadot ecosystem, with initial rewards for Liquidity Providers (LPs) surpassing the 200% APY mark. Thanks to Omnipool's single-sided LP model, users will start earning rewards after supplying a single asset and participating in incentives farms, with various assets being incentivized including native stablecoins, DOT, BTC, and several ecosystem coins.

The remaining one million DOT will be injected directly into the Hydration Omnipool itself, aiming to bolster the creation of a robust, accessible layer of native liquidity to benefit the broader Polkadot 2.0 ecosystem over time (Treasury Proposal #730). This funding supplements the existing 690k+ dot (AND 560k+ vDOT) already LPed into the Hydration Omnipool.

Jakub Gregus, co-founder of Hydration, expressed, "This generous allocation from the Polkadot treasury marks a pivotal moment for Hydration. With this welcome injection of liquidity, we are able to significantly deepen our liquidity, which is vital not just for our growth but also for the continued health of the entire Polkadot ecosystem."

The funding provided for the Hydration Omnipool, in a decentralized and non-custodial manner, will remain under the control of the Polkadot Protocol and OpenGov.

This strategic initiative is poised to drive substantial progress in how liquidity is provided and managed within the Polkadot ecosystem, setting a new benchmark for liquidity solutions in the shared blockchain network.

About Hydration

Hydration stands as the principal liquidity protocol on Polkadot, aiming to make DeFi efficient, simple, and unstoppable. It brings together swaps, lending, and a stablecoin currency in a single, scalable appchain. With features like single-sided LPing, automated trades (DCA), and limit orders, Hydration offers the most efficient liquidity venue on Polkadot.