Polkadot has allocated 2 million DOT tokens, equivalent to $14.4 million, to its leading DeFi project, Hydration. The funds are aimed at enhancing liquidity and trading efficiency on Hydration's single-sided liquidity provisioning platform, Omnipool. The allocation of the DOT tokens will be split into two parts. One million DOT will be used over the course of a year to attract new liquidity to the Polkadot ecosystem.
The funds are aimed at enhancing liquidity and trading efficiency on Hydration's single-sided liquidity provisioning platform, Omnipool. The allocation of the DOT tokens will be split into two parts. One million DOT will be used over the course of a year to attract new liquidity to the Polkadot ecosystem. Initial rewards for Liquidity Providers are expected to exceed 200% APY, with various assets being incentivized, including native stablecoins, DOT, BTC, and several ecosystem coins.