Polkadot has committed 2 million DOTs worth $14.4 million to boost liquidity for the DeFi Hydration project.
The project said the funds will improve the liquidity and efficiency of its one-sided liquidity platform Omnipool.
This latest funding aligns with Polkadot's ongoing efforts to improve and expand the network's distribution worldwide. Blockchain fund Web 3 has funded several projects in recent weeks, including PolkaPort East and Accelerate Polkadot.
This distribution will be carried out in two stages. The first phase will allocate 1 million DOT to attract new liquidity into the Polkadot ecosystem. This includes rewards for liquidity providers (LPs) with annual percentage yield (APY) in excess of 200%.
The remaining 1 million DOT will support the Hydration Omnipool, improving the natural liquidity level of the Polkadot 2.0 ecosystem. This is in addition to the 690,000 DOT already contributed to the Hydration Omnipool.
This funding aims to improve liquidity management on the Polkadot network, setting a new standard in blockchain technology. The Polkadot protocol and OpenGov will administer and manage the funds.
