Hydrated Dollar

Polkadot got a flagship decentralized dollar in September 2025 when Hydration, the ecosystem's largest DeFi protocol, launched HOLLAR. The token is over-collateralized by blue-chip crypto, DOT, ETH, and BTC, locked by borrowers who mint HOLLAR against it, so backing exceeds the tokens outstanding. A Stability Module handles risk with tools like partial liquidations and live price support, and redemptions carry only a token fee. Holders hold an onchain collateral claim redeemed through the protocol rather than a company, keeping the design permissionless and non-custodial. HOLLAR arrived with notable backing: Polkadot founder Gavin Wood praised its use of DOT as collateral, and the network's technical fellowship moved its payments onto HOLLAR in place of USDT. It launched with a capped initial supply and lives natively on the Hydration chain, meant to anchor Polkadot's stablecoin liquidity.