HOLLAR is a USD-pegged, over-collateralized stablecoin backed by DOT, ETH, and BTC.\n<\/p>\n
Hydration, the largest Polkadot<\/a>-based decentralized finance (DeFi) protocol by total value locked (TVL), has launched its native stablecoin, HOLLAR, today, Sept. 22. <\/p>\n According to a press release viewed by The Defiant, HOLLAR is designed as a decentralized, over-collateralized stablecoin \u2014 meaning the value of its reserves is more than the stablecoin\u2019s circulating supply \u2014 backed by a basket of cryptocurrencies, including Polkadot\u2019s native token DOT<\/a>, Ether (ETH), and Bitcoin (BTC). DOT is currently changing hands around $4, down about 7% on the day.<\/p>\n HOLLAR\u2019s Stability Module provides real-time price support and partial liquidations to protect user positions. The stablecoin also integrates with Hydration\u2019s trading, lending, and staking products.<\/p>\n The launch comes as the stablecoin sector continues to grow<\/a>. Total market capitalization is nearly $293 billion, up 69% from this time last year, according to DefiLlama<\/a>. <\/p>\n The team behind HOLLAR pointed to the risks of traditional stablecoins in the press release, raising concerns around centralization and reliance on the traditional banking system. HOLLAR aims to differentiate itself as a safer, fully decentralized alternative, they said.<\/p>\n \u201cThe DeFi space deserves better than half-baked experiments or centralized compromises,\u201d said Jakub Gregus, founder of Hydration \u201cHOLLAR represents a reimagining of what stablecoins can achieve when you control the entire execution environment, rather than being constrained by generalized smart contract environments.\u201d<\/p>\n The initial supply is capped at 2,000,000 HOLLAR, the press release states, and users can mint the asset at a 5% annual borrow rate.<\/p>\n \u201cI\u2019m looking forward to the release of HOLLAR and making sure it is well integrated with the direction of using stablecoins where they need to be used,\u201d Dr. Gavin Wood, creator of Polkadot, was quoted as saying in the release: \u201cI particularly like Hollar because it\u2019s decentralized and uses DOT as collateral. I prefer to use something like HOLLAR over USDC or USDT by a massive margin.\u201d<\/p>\n Hydration is by far the largest Polkadot DeFi protocol, with over $330 million<\/a> locked on the protocol, followed by Moonbeam at about $9 million. Polkadot, known as a Layer 0 chain, is currently the 36th largest<\/a> blockchain by market capitalization, at around $6 billion.<\/p>\n