The post DeFi project Hydration will receive $14.4M from Polkadot Treasury appeared on BitcoinEthereumNews.com.

Polkadot Treasury has allocated 2 million DOT tokens. They were worth approximately $14.4 million. The DeFi project Hydration has benefited from the allocation, which aims to improve liquidity and efficiency. Omnipool is a liquidity provisioning platform that operates on a single-sided basis. The announcement dates back to June 10, 2024, aligning with the mission of Polkadot to improve and expand the adoption of its network. For reference, a single DOT is exchanging hands for $6.44 at press time. Fund allocation will be executed in two phases, with both phases carrying tokens worth $1 million each. They are being done separately to achieve different goals and better support the development of Hydration. The first phase will roll out 1 million DOT tokens. The goal is to bring new liquidity to Polkadot’s ecosystem. The remaining 1 million tokens will specifically support the Hydration Omnipool, while also improving the liquidity layer for the Polkadot 2.0 ecosystem. The first phase includes rewards for LPs—liquidity providers—with an APY (annual percentage yield) that exceeds 200%. The single-sided LP design of Omnipool will facilitate the reward system. All a user has to do to earn the reward is deposit a single asset or join the incentive farm with stablecoins, Bitcoin (BTC), and Bitcoin (BTC). The second phase’s allocation will add to the 690,000 DOT tokens already allocated to the Hydration Omnipool. The overall aim is to advance liquidity management on the Polkadot network. OpenGov and the Polkadot Protocol will manage and administer the fund. Jakub Gregus, the co-founder of Hydration, has called this a pivotal moment for them, adding that the injection of liquidity was crucial for the health of the Polkadot ecosystem. Gregus has further stated that Omnipool’s design ensures unparalleled accessibility and efficiency during crypto trading. Finally, they concluded by saying that the Polkadot Treasury’s…

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Filed under: News - @ June 11, 2024 10:12 am