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- HOLLAR is an over-collateralized stablecoin backed by DOT, ETH, BTC.
- The HOLLAR Stability Module ensures automated price support and risk management.
- Four liquidity pools support efficient trading and integration with Hydration DeFi.
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Hydration, a core protocol within the Polkadot ecosystem, has unveiled HOLLAR, a decentralized stablecoin designed to overcome weaknesses in existing models. Announced on September 22, HOLLAR represents Hydration’s ambition to unify trading, lending, and stable value storage on its dedicated app chain. By being over-collateralized with major tokens like DOT, ETH, and BTC, HOLLAR aims to maintain reliability and trust for its users.
HOLLAR is HERE 🔥
— Hydration (@hydration_net) September 22, 2025
Hydration’s native, decentralized stablecoin currency
Built on battle-tested code (AAVE) with additional peg-support by the HOLLAR Stability Module
Get HOLLAR today:https://t.co/lfLEErdUyv pic.twitter.com/Em1BsLY6NX
HOLLAR Stability Module powers automated risk management
A standout feature of HOLLAR is the HOLLAR Stability Module (HSM), which automates price support and real-time interventions. The system handles partial liquidations, enforces risk controls, and provides instant price backing without relying on external arbitrage or human action. This contrasts with traditional stablecoins, often vulnerable to sharp market swings. Initial supply is capped at 2 million HOLLAR, and users can mint the token with a 5% annual borrow rate. Notably, purchases carry no fees, while redemptions incur a minimal 0.01% charge. HSM also maintains a price floor up to $0.995, protecting holders during volatile periods.
Liquidity pools and DeFi integration strengthen adoption
Hydration is launching four dedicated stablecoin liquidity pools outside its Omnipool. Each pool is seeded with protocol liquidity to encourage active trading and efficient price discovery. This infrastructure is intended to enhance capital efficiency and integrate seamlessly with Hydration’s broader DeFi ecosystem, positioning HOLLAR as a practical alternative to centralized stablecoins like USDC or USDT.
Also Read: Polkadot DAO Approves 2.1B DOT Hard Cap, Paving Way for Scarcity and Institutional Growth
Polkadot founder endorses DOT-backed approach
Dr. Gavin Wood, Polkadot’s founder, publicly supported HOLLAR’s launch, praising its DOT-backed decentralized design. While DOT has faced recent market pressure, HOLLAR’s introduction is seen as a positive development for Polkadot’s on-chain ecosystem, demonstrating advanced automation and protocol-level risk management.
HOLLAR combines automation, strong risk controls, and DeFi integration, offering a stable and secure option for crypto users. Its controlled supply, liquidity pools, and protocol-backed price support mark a significant step forward in decentralized finance.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
