DeFi project Hydration will receive $14.4M from Polkadot Treasury

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 fund allocation is a testament to the kind of impact they can have in the future.

The announcement has done little to help DOT, Polkadot’s native crypto. In the last 24 hours, DOT has fallen by 0.40%. It is further down by 8.12% in the last 7 days and 3.98% in the last 30 days. The market cap is above $3 billion, but it has dipped slightly at the time of writing this article. The 24-hour volume is up by 26.56%.

The development comes two weeks after Pudgy Penguins teamed up with Mythical Games to launch a Web3-based mobile game on the Polkadot network. The game is slated to be released in the year 2025. The goal is to increase Pudgy Penguins’ popularity. Two years ago, Polkadot celebrated its 4-year anniversary with unanimous approval for a JAM upgrade.

Polkadot may soon execute the allocation, despite not sharing the timeline for both phases.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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