You MUST Learn Polkadot DeFi (Hydration)

I have a top secret document on how to make money in Polkadot DeFi. Now is the time to act because recently the Polkadot treasury just gave 2 million DOT tokens to a DeFi project called Hydration and that goes directly to us, the DeFi users. I know I'm so lame here. But there is a big opportunity because the Polkadot ecosystem needs to grow DeFi. Now this is top secret so let's suit up and get started. Yo yo yo, it looks like a sniper over there. It's targeting Donald Trump. Before we start guys, as you always know, this is not financial advice and this video is made possible by the Polkadot Foundation. That being said though, it does not influence my decisions on Polkadot because I actually do have a large Polkadot holding and I bought that way before any of this is happening and you can track it on chain on WalletUp. send that link here if you really want to dox me. But preferably not. All's clear. All right, stupid fail aside. We're going to start off with talking about Hydration. So Hydration is kind of their DeFi hub. They have a huge amount of services. So they include trade, liquidity, pools, cross chain, pretty much everything. Now why we're talking about it first is because they recently received 2 million DOT and this is to promote liquidity on the platform. The other million DOT is to directly promote liquidity, the other million DOT is to provide liquidity. So TLDR, there's a lot of DOT here for you to earn. Now what we're going to do in this segment is just take a look around Hydration. And I feel like using Hydration gives you two key benefits. One, obviously, is you get APY. The second reason, if you start generating transactions on chain, this is where future air drops can come. It really does remind me of the early days for Cosmos. A lot of the airdrop waves in Cosmos was triggered from staking and LPing on the Osmosis zone, right? Which was the native liquidity hub for the entire Cosmos ecosystem. So we played a few accounts on this before we started making this video. Hmm. So one key thing to remember, all right, is as much as you want to use a ledger, ledger support here is not super good. We'll take you down a step-by-step of how to move funds onto our favorite wallet, which is SubWallet right now. And then we'll take you through two pools, the two pool, the dot pool. And just like, just show you guys how it works here. So first and foremost, you actually do need some polka dot. For me personally, I just withdrew it from Bybit. And then you can get the address for your dot. So just click this and you polka dot and polka dot, and then you can get the address. So just copy that and put that into Bybit for the draw. Keep in mind which network you're withdrawing to. So possibly on Bybit, there are two options. So there's polka dot and polka dot asset hub. So make sure that is the correct one. Otherwise you're sending to the wrong address. So once that is done, you want to go on to hydration and go to cross chain. On cross chain, we're going to bridge that asset from polka dot chain onto the hydration chain. The cost of this is very minimal. So it's a 0.06 dot for the transaction fee. And they explicitly tell you don't use a ledger for this right now. Because so many things are being built very quickly, ledger might not have all the options available. So you might get stuck at a particular stage, which is bad. Once that's in, I kind of played around with the two pools. To get to this pool is quite relatively easy. The dot pool, you just go to dot pool, you add liquidity. It's one sided. And I threw in like say 18 or whatever. And click liquidity position, sign a transaction, and you're good to go. So now that we put the funds into this pool, there's one more step that's actually rather important, which is you need to join the farm. So I found the easiest way in terms of UI to do this is go click liquidity again. Click on manage. Show your positions and make sure you join the farms. And just a small note as well. There is a minimum of 11.4747 dot to enter a farm as well. Different farms have minimum threshold as well. In terms of reward distribution, hydration incentivizes you to keep your position for these amount of days to maximize your APR. So at first you won't see 16.1%. You'll only see 16.1% after day 20. Got it, got it. So make sure you join the farms because otherwise your funds are just sitting there, okay? So the farms are where you need to go, all right? Don't be an idiot. Once you join inside, you can see how much you got in your farming positions. It does actually take a little bit of time to show up. So I would like if it doesn't show up, wait three minutes, you got this. And then you can see your claimable V dot and your rewards and actually your hydration as well. So you actually see both. And as Ronald said earlier, the longer you keep it in the farm, the more they give in terms of APR. Make sure you don't fade out on these UIs. These UIs are not as clean as they can be. Like they're a little bit more hidden. Yeah. But just click those extra buttons. You will be rewarded and you will not regret. And I think that's how they test if you're a real user or not. The simple farmers will just put it in the pool. But the real farmers will put it into the farm. Yes. The other option that you can do that's, I think that's quite an interesting pool for me personally, is a tool pool USDT-C and USDC. Why is this interesting for me is because both of these are stable coins, but the APY can go up to 28%. This actually went down over time. It was actually higher. It was 100% last month, but I expect it to be around this rate this month. And there's actually a cap on it. So you can now, this pool only takes up to $18 million before it closes off. So if you guys are interested in jumping this early, just providing some liquidity there that can work. There's also two ways of doing it. If you can just withdraw directly from Polkadot on your exchange, do it. Or you can, of course, just swap your Polkadot to USDC or USDT. Just be aware of implement loss if this is the case. Overall, the swaps are really easy to do on this platform. So I would recommend that you do one or two swaps. Because air drops usually reward people who use the swaps as well. Not just provide liquidity, but if you're a user, that usually helps. Last thing, of course, just for a referral side. If you guys are interested and you want to help us a bit, you can type in our box mining referral code here to help us as well. So you get, you can earn and you both, we both earn from this TLDR. So anyways, that kind of concludes hydration. Like, do play around with it. There's multiple pools. Personally, the two pools that interest me are 2pool, dot pool. But also, if you also have like, say, Bifrost or something like that, you should definitely look into putting it here because the APYs are actually pretty massive. Like something like Frost or something, they're getting like 89%. So Ron actually asked me what are the risks for this. And I think we do have to state this out. This is the early days of DeFi. So just cross-chain risks. Like say, for example, assets crossing chains. Sometimes it's not that clean. Or sometimes there's contract hacks where like, if the contract's not very well written, there could be issues, especially for experimental new products like this. I do want to say that one hack that is not present, sometimes they do flash loan attacks on particular trading pairs or something like that. And this is not present here because luckily this is not a borrowing lending platform. So I think you have that advantage here. Also, of course, if you're holding the asset, you know, the price of the asset can go off and down. Yeah. I have something to tell you. Recently, YouTube has been pretty nasty. They banned two of our fun channels. That includes Box Money Plus and AlphaDraw. That means though, the fun content we've been serving you, we're bringing that back. We're not dying. We're actually doubling down. So we have two new channels for you guys. One is called Chain TLDR. And this is where you are going to get our airdrop updates. Secondly, we have a news channel and that's called Box Money Why? Why is crypto going up? That is our news channel and we do daily streams on what's happening. Well, close to daily streams anyways, whenever we have time. So guys, I hope you guys can support us there and make sure you check it out. Let's go. Now, another DeFi platform that we've been using on Polkadot is Bifrost. And you can also use this in conjunction with the strategies on hydration. And we'll talk about that later. But what Bifrost is all about is that they offer liquid staking services for the biggest assets here on the Polkadot ecosystem like Polkadot, Manta, ETH, Filament. And the great thing about this is that you're going to be earning staking rewards while maintaining asset liquidity. So when I first came across Bifrost is when I wanted to stake Manta. One of the biggest problems of staking Manta was that there was a very high threshold for staking on Manta Atlantic. So Bifrost was a great alternative for anyone with, you know, not a lot of Manta to essentially stake, contribute to the ecosystem while earning rewards at the same time. Now, a very core question, of course, is where's the money coming from, right? The rewards that you're earning, where is that money coming from? So for Bifrost, they're providing liquid staking services for multiple chains. And that's the thing about the cross chain functionality of Polkadot. And by providing their services, Bifrost is essentially collecting reward fee from all tokens staking rewards as protocol income. The reward fee is then deposited into the protocol treasury where it serves as a risk reserve fund or other ecosystem purposes. Now, here's where you can use Bifrost in conjunction with hydration. If we go to V staking here, you can see that you can liquid stake your DOT into V DOT. And then you can use that V DOT as a yield bearing collateral in hydration's liquidity pools. So you can see you can deposit your V DOT here into the hydration farms to earn even more rewards. Remember, the compounding effect of all of these rewards is made possible because of the large amounts of money that the Polkadot treasury has given to hydration. So essentially, they're bootstrapping liquidity by giving you guys liquidity. So that's one strategy that you can do. You can also do it vice versa. So you can claim your V DOT rewards from the farms here on hydration. And you go to Bifrost and you can see they also have farms that offer V DOT assets for you to deposit to earn yields. But do keep in mind for this particular farm right here, if you're going to be depositing on V DOT USDT, there could be impermanent loss. But for DOT, V DOT, and V DOT, the risk of impermanent loss is much less. But just remember, this is not financial advice. If you are a beginner in DeFi protocols, especially when it comes to yield farmings, you need to know the risk and do your own research before engaging in such activities. And it's always best to monitor your position every day, even though you're earning these rewards passively. But yeah, if you're very interested in looking for a liquid staking protocol in the Polkadot ecosystem, Bifrost has the largest market share. And it's also worth mentioning that the liquid staking market has the largest TVL in all of crypto. The fact that you can earn staking rewards while having the flexibility to use that liquid staking token across a lot of DeFi protocols gives you a lot of opportunity to make money on DeFi, basically. And folks, that is it for our recap on DeFi on Polkadot. Honestly, though, there is a lot going on. And I know it's actually quite clunky. Honestly, using the substrate wallets, transferring from Relay to the mainnets or the layer one, it's not as easy as it could be. But that being said, I think it's really worth the effort to get started now because early bird always gets the massive rewards. It reminds me of this stuff that happened in compound days. We were there early for DeFi and early DeFi was just ridiculous. So guys, definitely pay attention to what's going on in Polkadot ecosystem. And guys, thank you guys so much for watching this video. I hope you guys like the theme and all the stupid stuff that we throw on our channel. If you do, make sure you're subscribed. And you check out our second channels here. It's really helpful.