Hydration is an innovative DeFi protocol that helps add liquidity to the Polkadot ecosystem.
Hydration is the next-gen DeFi protocol making an impact on the Polkadot ecosystem. Hydration's mission is to add liquidity to the Polkadot ecosystem. To do this, it uses the Hydration Omnipool, an Automated Market Maker (AMM) that combines all assets into one pool for greater efficiency. This means lower slippage, fewer hops, and more for traders. Hydration makes it easy to trade without having to switch between different trading pools.
The Hydration Omnipool ensures top-notch security with multiple code audits, a bug bounty program to encourage users to find vulnerabilities in the code, and mechanisms like liquidity caps, protocol fees, and circuit breakers to keep liquidity safe and sound. Treasuries of DAOs and projects can effortlessly supply their assets via XCM and instantly connect to a diverse pool of assets without hidden fees.
Hydration’s token is HDX.
Hydration has a lot of features to offer. Here are some of the most important ones to try out:
"Trade" allows you to swap your assets for other desired assets. It offers several methods to do this.
“Swap” is the simplest option which lets you swap assets with the Omnipool. This is most suitable for quick token conversions of one asset to another.
“Trade OTC” allows you to peer-to-peer (P2P) trade directly with other users over-the-counter and bypass the Omnipool. This option helps reduce price impact and lets you easily get your desired price and quantity of tokens. This is most suitable for large orders to avoid slippage and for negotiating specific prices with other users.
“Trade DCA” lets you use the Dollar-Cost-Averaging (DCA) strategy by automatically purchasing small amounts of a specific asset at regular intervals. Dollar-Cost-Averaging helps you reduce the impact of market volatility by averaging your purchase price over a longer period of time. This strategy is great for long-term investments.
“Yield DCA” applies Dollar-Cost-Averaging to staking by automatically investing and staking assets over a period of time to earn compounding rewards. This option primarily focuses on accumulating liquidity provider (LP) tokens. This strategy is great for earning passively on your long-term holdings by letting them generate yield for you.
“Bonds” allows you to purchase HDX bonds which can help grow Hydration's protocol-owned liquidity (POL). Here, you can lend your assets for a specific period in exchange for predetermined interest payments. This option works best for generating predictable income since bond rates are fixed.
Hydration's Omnipool also offers a dynamic trading fee wherein there are higher fees for more volatile assets. This discourages manipulative trading behavior and boosts the Omnipool stability. Hydration also offers a slippage slider which allows you to control the maximum acceptable price deviation when executing a trade. You can also use the split-trade function to break down large orders into smaller chunks and execute them gradually over a specified period to reduce slippage and price impact.
The “Liquidity” option allows you to provide liquidity to liquidity pools and earn rewards. Some of these rewards are generated through trading fees while some are additionally incentivized such as HDX Emissions which are locked tokens to be released over time and Hydrated Farms" which allow LPs to earn additional rewards on top of trading fees. Choose which asset to deposit as well as which liquidity pool you wish to provide for (Omnipool, Stablepool or Isolated pools). You can also view the total value in each pool as well as the 24h volume.
Use the “Wallet” function to view all your current assets in your connected wallet. You can view your total balance as well as the specific balance for each asset. You can also trade, transfer, and deposit each specific token. Furthermore, you can check your current liquidity positions, farming positions, and vestings here.
The “Cross-chain” feature lets you bridge your assets between different blockchains. Select the source chain and destination chain, choose the asset and amount of it to send, review your transaction details, and then transfer.
View the overall state of the Hydration network here on “Stats”. You can see metrics such as the composition of assets in the Omnipool and treasury, 24-hour volume, Total Value Locked (TVL), and recent trades.
“Staking” allows you to lock up your assets to secure the network and get rewards in turn. Here, you can stake and unstake your HDX, claim your staking rewards, and participate in governance to speed up your staking. You can also view the currently staked HDX and projected APR.
Hydration allows you to refer traders to the project to earn rewards. Here in “Referrals”, you can generate your referral link, claim your referral rewards, and input your referrer.
