Hydration Launches HOLLAR as Polkadot’s Premier Decentralized Stablecoin

Built on proven infrastructure with unique stability mechanisms, HOLLAR sets a new standard for decentralized finance

[September 22, 2025, Gibraltar] – Hydration announces the launch of HOLLAR, its native decentralized stablecoin, completing the company’s long-term vision of building a comprehensive, scalable DeFi ecosystem on Polkadot. With HOLLAR now live, Hydration unites all three foundational pillars of decentralized finance, trading, borrowing, and stable value storage within its purpose-built app-chain.

The launch of HOLLAR comes at a time when the shortcomings of existing stablecoins are increasingly clear. Today’s landscape forces users into a choice between compromise and inadequacy. Centralized options like USDC deliver stability but require trust in traditional financial institutions, an approach that undermines DeFi’s core promise of financial sovereignty. Algorithmic experiments have repeatedly shown their fragility, often collapsing precisely when stability is needed most. Even collateral-backed stablecoins, while more resilient, rely on slow, indirect arbitrage through secondary markets. Restoring a peg under stress can take hours or even days, leaving users exposed. Their liquidation systems also remain blunt tools, wiping out entire positions when partial intervention would suffice, creating unnecessary losses and inefficiencies. Most critically, these solutions are limited by the general-purpose smart contract environments in which they operate. They cannot execute automated responses, prioritize critical transactions, or deliver the real-time interventions that true stability demands. They are, at their core, passive systems dependent on external actors to behave as intended.

HOLLAR addresses these challenges by operating as an over-collateralized stablecoin backed by assets such as DOT, ETH, BTC, and other major tokens. Its HOLLAR Stability Module (HSM) introduces a breakthrough mechanism that provides direct, real-time price support while generating yield, ensuring both peg stability and protocol sustainability. Automated risk management preserves user positions through partial liquidations executed at the protocol level, while seamless integration with Hydration’s trading, lending, and staking products unlocks advanced DeFi strategies without fragmentation.

“The DeFi space deserves better than half-baked experiments or centralized compromises,” said Jakub Gregus, Founder of Hydration. “HOLLAR represents a reimagining of what stablecoins can achieve when you control the entire execution environment, rather than being constrained by generalized smart contract environments.”

HOLLAR launches with carefully designed parameters to ensure both stability and controlled growth. The initial supply is capped at 2,000,000 HOLLAR, allowing for gradual ecosystem adoption while maintaining security.

To maximize capital efficiency and ecosystem integration, Hydration is also introducing four dedicated stablecoin pools operating outside the Omnipool. These branded pools create distinct trading venues while remaining tightly connected to Hydration’s broader DeFi ecosystem, with the protocol seeding initial liquidity to ensure robust price discovery and trading depth from launch. This thoughtful parameter selection strikes a balance between accessibility, security, and growth potential, laying the foundation for HOLLAR to become Polkadot’s premier decentralized stablecoin.

Recently, Dr. Gavin Wood, Creator of Polkadot, said “I’m 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. I particularly like Hollar because it’s decentralized and uses DOT as collateral. I prefer to use something like HOLLAR over USDC or USDT by a massive margin.”

HOLLAR is now live on Hydration.

Learn more about HOLLAR: Complete documentation covering mechanisms, usage, and integration patterns is available at docs.hydration.net/products/hollar

Start using HOLLAR at app.hydration.net

Join the community: Connect with other Hydrators in Hydration’s Discord and follow development updates on X

For media inquiries, please contact Jonathan Duran at Jonathan(at)Distractive(dot)xyz

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About Hydration

Hydration is a next-gen Layer-1 blockchain built on Polkadot, designed to make DeFi efficient, simple, and unstoppable. At its core, it unites the three fundamental pillars of DeFi - trading, lending, and stablecoin - while offering powerful tools for DAOs, projects, and users of all types.