Polkadot allocates $14.4 million to Hydration to promote DeFi development

ChainCatcher news, according to Decrypt, the Polkadot ecosystem DeFi project Hydration has announced that it has obtained 2 million DOT tokens (approximately 14.4 million USD) from the Polkadot treasury. This funding will be specifically used to enhance the liquidity and trading efficiency of Hydration's unilateral liquidity supply platform, Omnipool.

It is reported that within a year, 1 million DOT will be spent to attract new liquidity into the Polkadot ecosystem, with initial rewards for liquidity providers (LP) exceeding 200% APY. Thanks to the unilateral LP design of Hydration Omnipool, users will start receiving rewards after providing a single asset and joining the incentive farm, with incentive assets including native stablecoins, DOT, BTC, and various ecosystem tokens.

In addition, the remaining 1 million DOT will be directly injected into Hydration Omnipool itself, aiming to support the creation of a strong and accessible native liquidity layer.