Requested Amount: 1,000,000 DOT
Date: 08-03-24
Short Description: Attract liquidity and attention to the Polkadot ecosystem by granting the HydraDX Treasury 1,000,000 DOT to, along with an allocation of HDX from the HydraDX Treasury, fund a comprehensive liquidity mining program boosting major Polkadot assets.
The goal of the Polkadot Hydration Campaign is to contribute towards building an accessible, deep layer of native liquidity which, over time, will help the wider Polkadot 2.0 ecosystem flourish. This proposal should be viewed in conjunction with a parallel proposal which aims to LP 1,000,000 DOT into the HydraDX Omnipool - in a decentralized and non-custodial manner, with the funds remaining under the control of the Polkadot Protocol and OpenGov.
If adopted, this proposal will grant the HydraDX Treasury 1,000,000 DOT which will be used to co-fund a comprehensive liquidity campaign. This campaign is geared towards attracting liquidity into the Polkadot ecosystem by providing liquidity mining (LM) incentives for LPing into DOT, another 8+ ecosystem assets, iBTC, vDOT, and native stablecoins.
The LM incentives will attract liquidity for all major Polkadot ecosystem assets currently in the Omnipool. Deep liquidity will enable more efficient trading for all DeFi users of Polkadot. This will translate into higher volumes in the Omnipool, eventually spilling over into the rest of the ecosystem.
The capital flows which will be caused as a result of the Polkadot Hydration Campaign will be seen by the rest of web3 as a strong sign of a vibrant ecosystem which is in good health. Besides increasing the mindshare of Polkadot, we believe this can set the flywheel into motion which drives increased adoption driving additional capital into the ecosystem. Just in time for the upcoming DeFi summer?
This proposal was ratified by HydraDX token-holder governance through referendum #125.
Please read the full proposal here.
The previous discussion can be found here - the main change is the increase from 500,000 DOT to 1,000,000 DOT based on feedback from DOT holders.