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HOLLAR was introduced as a decentralized and over-collateralized stablecoin, meaning the value of the reserves backing it is greater than the circulating supply. With a total locked value (TVL) of over $330 million, Hydration positions itself as a leader in the DeFi Polkadot ecosystem.

The stablecoin is designed to integrate with Hydration’s trading, lending, and staking products, providing flexibility and security for its users. With an initial capacity limited to 2,000,000 HOLLARS, the stablecoin offers an annualized loan rate of 5%.

The HOLLAR Stability Module provides real-time price support and partial liquidation to protect users’ positions. This approach aims to address the weaknesses that often occur in other stablecoin models, as seen in the famous TerraUSD (UST) case.

HOLLAR Technology and Security Advantages

HOLLAR differentiates itself by introducing the HOLLAR Stability Module (HSM), which provides direct price support and real-time intervention.

The system enables partial liquidation, automatic risk control, and instant price support, which is a significant improvement over centralized and algorithmic stablecoins that often require external arbitrage or human intervention. With this design, HOLLAR aims to mitigate common issues that have led to instability or failure in previous stablecoin models.

In addition, Hydration is also establishing four dedicated stablecoin liquidity pools outside of its Omnipool. These pools will be dedicated trading venues, each seeded with protocol liquidity to encourage active price discovery from the outset.

The arrangement aims to improve capital efficiency and integration with Hydration’s broader range of DeFi services.

Endorsements from Polkadot Founders and Future Prospects

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Dr. Gavin Wood, founder of Polkadot, gave strong support to the launch of this DOT-backed stablecoin. He expressed a clear preference for HOLLAR compared to more established centralized options like USDC and Tether (USDT).

HOLLAR’s decentralized approach, using DOT as collateral, earned special praise from Dr. Wood. Jakub Gregus, founder of Hydration, emphasized that the DeFi space deserves more mature and decentralized solutions rather than half-hearted experiments or centralized compromises.

With full control over the execution environment, HOLLAR is expected to accomplish what no other stablecoin can, setting new standards in security and efficiency.

Overall, with the launch of HOLLAR, Hydration not only strengthens its position as a leader in the DeFi Polkadot ecosystem but also brings much-needed innovation into the stablecoin sector.

With advanced technological support and a focus on decentralization, HOLLAR is poised to become the top choice for users looking for a secure alternative that integrates with the broader DeFi ecosystem.

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