Hydrated Dollar

HOLLAR Price

About Hydrated Dollar (HOLLAR)

Hydrated Dollar (HOLLAR) is a decentralized, over-collateralized stablecoin within the Hydration ecosystem designed to maintain a stable value relative to the US Dollar through crypto-asset backing.

• The protocol enables users to mint HOLLAR by depositing supported cryptocurrency assets as collateral into the Hydration Borrow Markets.
• It utilizes a dedicated Stability Module that facilitates direct conversions to enhance price stability and generate protocol revenue through yield-earning strategies.
• Built on a specialized Polkadot-based blockchain, the protocol inherits battle-tested mechanisms from the Aave GHO architecture for collateral management and liquidations.

What Is Hydrated Dollar

Hydrated Dollar serves as a decentralized stablecoin for the Polkadot ecosystem, providing a trustless alternative to centralized fiat-backed tokens. The value within the system moves through a mint-and-burn mechanism where each HOLLAR token represents a claim against crypto assets held in the protocol's vaults.

Users put the token to work by participating in the Hydration DeFi suite, where it serves as a stable unit of account for trading and lending. Unlike algorithmic models that rely solely on market arbitrage, HOLLAR maintains a direct backing relationship with deposited crypto assets, ensuring that every token in circulation is supported by verifiable on-chain collateral. As the Hydration network grows, the protocol scales by expanding its supported collateral types and integrating across various parachains.

What Makes Hydrated Dollar Unique

• Aave-derived Architecture: The protocol inherits the security and efficiency of the GHO protocol, utilizing proven mechanisms for interest accrual and collateral management.
• HOLLAR Stability Module (HSM): This native feature enables direct stablecoin-to-stablecoin conversions, allowing the protocol to maintain its peg while deploying received reserves into yield-earning strategies to generate revenue.
• App-Specific Infrastructure: By operating on a custom blockchain runtime on Polkadot, Hydration can implement optimizations and security features that are often restricted on generic smart contract platforms.

What Can You Use Hydrated Dollar for?

Hydrated Dollar is pegged to the US Dollar and serves several primary functions within the decentralized finance landscape:

1. Value retention: HOLLAR provides users with a digital, on-chain representation of the US Dollar, allowing them to hold a stable asset within the Polkadot ecosystem and potentially reduce exposure to broader cryptocurrency market volatility.
2. Yield generation: Users can participate in yield-earning opportunities by providing HOLLAR as liquidity in Hydration's pools or through decentralized lending protocols. The protocol also manages a Stability Module that deploys reserves into yield strategies to support the ecosystem.
3. Cross-border settlement / value transfer: HOLLAR enables the global transfer of US Dollar-pegged value with the speed and finality of the Hydration network, facilitating international value movement without reliance on traditional financial intermediaries.
4. Collateralization: The token can be used as backing for other borrowing and lending activities within the Hydration protocol or as a margin asset for decentralized trading across the Stablecoins market.

How Does Hydrated Dollar Work?

Hydrated Dollar operates through an over-collateralized debt position (CDP) system. To mint HOLLAR, users supply supported assets such as Ethereum or Polkadot to a vault, which then allows them to borrow HOLLAR up to a specific loan-to-value (LTV) ratio. The protocol evaluates the collateral's value in real-time to ensure it remains above the required threshold.

If the value of the collateral falls below a predefined safety level, the position becomes subject to liquidation to protect the protocol's solvency. Users pay protocol service fees in the form of interest on their minted debt, which is used to manage the system and incentivize stability. The HOLLAR Stability Module further supports the peg by allowing users to buy or sell HOLLAR at a predictable rate close to 1 USD using other verified stablecoins.

Team Info and Investors

The project was developed by the Hydration team, formerly known as HydraDX, which is a core contributor to liquidity infrastructure on Polkadot. Governance of the protocol is decentralized and managed through the Hydration DAO, where community members can propose and vote on risk parameters, interest rates, and the inclusion of new collateral types. The transition to the Hydration brand marked an expansion of the project's scope from a decentralized exchange to a comprehensive DeFi hub including lending and stablecoin issuance.

Where can you buy Hydrated Dollar?

HOLLAR tokens can be traded on decentralized exchanges. The most popular exchange to buy and trade Hydrated Dollar is Hydration, where the most active trading pair HOLLAR/USDC has a trading volume of $1,275,731.10 in the last 24 hours.

What is the daily trading volume of Hydrated Dollar (HOLLAR)?

The trading volume of Hydrated Dollar (HOLLAR) is $2,434,808.59 in the last 24 hours, representing a 244.30% increase from one day ago and signalling a recent rise in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for Hydrated Dollar (HOLLAR)?

Hydrated Dollar (HOLLAR) reached an all-time high of $1.02 and an all-time low of $0.9302. It’s now trading -2.50% below that peak and 7.20% above its lowest price.

What is the market cap of Hydrated Dollar (HOLLAR)?

Market capitalization of Hydrated Dollar (HOLLAR) is $11,523,519 and is ranked #1059 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of HOLLAR tokens (12 Million tokens are tradable on the market today).

What is the fully diluted valuation of Hydrated Dollar (HOLLAR)?

The fully diluted valuation (FDV) of Hydrated Dollar (HOLLAR) is $11,520,338. This is a statistical representation of the maximum market cap, assuming total number of 12 Million ETH tokens are in circulation today.

How does the price performance of Hydrated Dollar compare against its peers?

With a price increase of 0.10% in the last 7 days, Hydrated Dollar (HOLLAR) is outperforming the global cryptocurrency market which is down -3.40%, while outperforming when compared to similar Stablecoins cryptocurrencies which are down -0.30%.