Bifrost’s vDOT, Polkadot’s largest liquid staking token, is now listed on Hydration Money Market, reaching $2.2M TVL within 15 hours. This integration enables DeFi users to earn dual yields, borrow against staked tokens, and leverage positions, enhancing liquidity and adoption in the Polkadot ecosystem.
Polkadot’s biggest liquid staking token (LST), vDOT, has been added as a collateral asset on Hydration Money Market by Bifrost. Within 15 hours of deposits and loans being made available, vDOT hit the supply limit of $220,000 and went over $2.2 million in Total Value Locked (TVL), which was caused by DOT using demand to drive prices up.
Polkadot’s DeFi participants can now use new tactics thanks to the addition of vDOT to Money Market: Participants who stake Polkadot (DOT) get vDOT, which can be used as collateral to borrow more DOT. This process makes it possible to go through the cycle again and again to look for ways to get the best results.
With this introduction, Bifrost opens up the possibilities of Polkadot DeFi, making the environment stronger through synergies and flywheels. Users can earn double returns, borrow against their staked tokens without losing liquidity, and use leverage to get higher returns on their investments.
This cooperation also makes the DOT market more liquid, encourages users to accept it, and shows how the Polkadot ecosystem can be put together in different ways. This makes vDOT an important part of the Polkadot ecosystem.
