Hydration, the largest DeFi protocol on Polkadot, has launched HOLLAR, its native stablecoin, designed to maintain a $1 peg through a blend of over-collateralization and advanced stability mechanisms.

Unlike algorithmic stablecoins that rely solely on market dynamics, HOLLAR is backed by user-deposited collateral including DOT, ETH, wrapped BTC variants, and stablecoins such as USDT and USDC.

Built on the framework of Aave’s GHO stablecoin, HOLLAR integrates proven features for collateral management and liquidation. A distinctive element is Hydration’s Stability Module, which provides asymmetric price support: It caps HOLLAR’s ceiling by allowing users to mint at predictable…

Read more on Blockworks