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What is Hydration?

Hydration is a next-gen Layer-1 blockchain built on Polkadot, designed to make DeFi efficient, simple, and unstoppable. At its core, it unites the three fundamental pillars of DeFi - trading, lending, and stablecoin - while offering powerful tools for DAOs, projects, and users of all types.

The Three Pillars​

Trading: The Right AMM for Every Need​

Hydration offers a comprehensive suite of Automated Market Makers (AMMs), each optimized for specific trading scenarios:

  • The innovative Omnipool combines assets into a single trading pool, enabling lower slippage, fewer hops between trades, and unprecedented capital efficiency gains. It introduces single-sided liquidity provisioning, making market making more accessible than ever.
  • Stablepools provide specialized environments for correlated assets like stablecoins or wrapped tokens (USDT/USDC/DAI or BTC/WBTC), offering minimal slippage and maximum capital efficiency.
  • Isolated Pools allow for custom risk management and yield opportunities while protecting the broader protocol. Liquidity Bootstrapping Pools (LBPs) empower new projects to achieve fair token distribution and initial price discovery, while also enabling the protocol to acquire Protocol-owned liquidity.

Advanced features like yield optimization and DCA trading enhance the trading experience further.

The protocol also caters to unique market needs through Memepad, a tool for creating meme coins without coding knowledge, and sophisticated DAO treasury management solutions, as demonstrated by the Polkadot DAO's $2 million stablecoin acquisition through Hydration.

Borrowing: Next-Generation Borrowing Infrastructure​

Built on battle-tested foundations, Hydration's borrowing platform introduces groundbreaking improvements in efficiency and security. As a Polkadot appchain, Hydration ensures prioritized on-chain liquidations execute at the start of every block, eliminating the delays and MEV exploitation common on general-purpose chains.

The protocol's innovative design internalizes liquidation rewards that typically go to bots, redirecting them to enhance protocol sustainability. Combined with enshrined oracle updates and sophisticated risk parameters, these features create one of DeFi's most secure and efficient lending environments.

Stablecoin: HOLLAR​

The upcoming HOLLAR stablecoin will complete Hydration's DeFi ecosystem, providing a native stable asset designed to work seamlessly with all protocol features.

Treasury Management for DAOs​

Hydration offers a comprehensive suite of tools designed specifically for DAOs and projects:

  • Fair Token Launch: Use Liquidity Bootstrapping Pools (LBPs) for initial token distribution and price discovery through time-based weight shifting.
  • Permissionless Markets: Create Isolated Pools for your token without requiring Hydration DAO approval.
  • Single-Sided Liquidity Provision: The Omnipool enables DAOs to provide liquidity with just their own token - no paired assets required. Earn trading fees on previously idle treasury tokens, accumulating Protocol-Owned Liquidity over time.
  • Sovereign Treasury Management: Through Polkadot's XCM capabilities, DAOs maintain complete control over their funds while participating in liquidity provision.

Security, User Experience, and Sustainability​

Security and user experience are central to Hydration's design philosophy. The protocol combines multiple security audits, a generous bug bounty program, and sophisticated protection mechanisms with one of DeFi's most intuitive interfaces. By prioritizing organic revenue distribution without relying on new token mints, Hydration ensures long-term sustainability while making complex DeFi operations accessible to all users.

Stay hydrated, not liquidated.