Hydration

Hydration operates as a comprehensive DeFi protocol on Polkadot, combining multiple automated market maker (AMM) types to optimize trading execution. The platform integrates three distinct AMM models: Omnipool for interconnected liquidity, Stablepools for stable asset trading, and Isolated Pools for permissionless token listings.

Key trading features include order splitting to minimize slippage on large trades, on-chain dollar-cost averaging (DCA) for automated trading strategies, and over-the-counter (OTC) trading without intermediaries. Users can pay transaction fees using any supported asset rather than requiring native tokens.

The protocol extends beyond trading with lending and borrowing capabilities, allowing users to borrow digital assets against accepted collateral. The Hollar stablecoin serves as the platform's native stable currency, designed to maintain price stability through over-collateralization.

Governance and tokenomics center around the HDX token, which grants voting rights and distributes protocol revenue to holders. The platform incentivizes participation through staking rewards and maintains protocol-owned liquidity through treasury management.

DAO integration supports over 15 projects including Polkadot's Treasury, offering accessible market making, single-sided liquidity provision, treasury diversification tools, and Liquidity Bootstrapping Pools (LBPs) for initial token distribution. Cross-chain communication via XCM enables non-custodial treasury management for Polkadot ecosystem projects.