Requested Amount: 5,000,000 DOT

Date: 28-04-2025

Short Description: **Allocate 5M DOT towards DeFi incentives on Hydration, the liquidity backbone of Polkadot. These incentives will be distributed over the course of 12 months to the following initiatives:**

- **2M DOT stablecoin incentives;**
- **2M DOT LP incentives;**
- **1M DOT incentives to mint GIGADOT**

## Summary
Decentralized Finance (DeFi) plays a foundational role in any healthy blockchain ecosystem, with Polkadot not being an exception. As the broader crypto market enters a phase of maximum competition, strategic incentives are essential to attract users, deepen liquidity, and strengthen the competitive edge of Polkadot’s ecosystem.

This proposal seeks Treasury support to fund DeFi incentives that will catalyze growth, foster adoption of ecosystem based products, and reinforce Polkadot’s position as a foundational layer for open, interoperable finance.

The proposal document begins by laying out the motivation behind the proposed incentives, together with a brief reflection on the success of the previous Polkadot Hydration liquidity campaign which kicked off in June 2024. Building upon that, it examines the three buckets of incentives that we propose for the upcoming 12 months, together with their success metrics. It concludes with some details on the execution of the proposal.

# Please read the full proposal [here](https://docs.google.com/document/d/1TGepA6VGObrolRExsQ6CZVpQO62NHmvuxfqMTuNwn_c/edit?tab=t.0#heading=h.1gdi5smm42un).


- **Problem Statement & Audience:** Allocate 5M DOT for DeFi incentives on Hydration in Polkadot.
- **Significance:** DeFi incentives are crucial for attracting users, deepening liquidity, and enhancing Polkadot's competitiveness.
- **Proposed Solution:** Distribute 5M DOT over 12 months for stablecoin, LP, and GIGADOT incentives.
- **Expected Outcomes:** Growth, adoption of ecosystem products, and strengthening Polkadot's position in open finance.

#1542 Polkadot GIGAHydration Campaign