Hydration, the largest decentralized finance (DeFi) protocol on Polkadot, has officially launched HOLLAR (HOL), its native, over-collateralized stablecoin. The new stablecoin is designed to maintain a peg to the U.S. dollar and is backed by a basket of assets, including Polkadot (DOT), Ethereum (ETH), and Bitcoin (BTC).

This launch introduces a native stablecoin to the Polkadot ecosystem, aiming to enhance liquidity and provide a stable medium of exchange for its DeFi users. HOLLAR’s architecture is built on code from Aave, a prominent and widely used lending protocol, which adds a layer of security and reliability. The system also incorporates a 'HOLLAR Stability Module' to provide additional mechanisms for maintaining the currency's peg.

The introduction of HOLLAR is a significant development for Hydration and the broader Polkadot network. By offering a decentralized, multi-collateral-backed stablecoin, the protocol aims to create a more robust and self-sufficient DeFi ecosystem, reducing reliance on centralized or externally-bridged stablecoins. This move signals a strategic push to deepen on-chain liquidity and utility within Polkadot.