Hydrated Dollar (HOLLAR): What It Is, Uses and Risks

HOLLAR is a stablecoin associated with Hydration, a decentralized finance protocol that its team describes as a Polkadot appchain offering a decentralized exchange, lending and borrowing, and a stablecoin. The project describes HOLLAR as an over-collateralized stablecoin designed to track roughly one US dollar.

The main design choice is how the coin is created. Rather than relying mainly on market incentives to hold its price, as some algorithmic stablecoins do, HOLLAR is minted against crypto collateral that users deposit into the protocol. Each token is meant to represent a claim on those collateral assets. Over-collateralization means the value deposited is set higher than the value of HOLLAR issued against it, which is meant to give a cushion if collateral prices fall.

The public data does not list a native token or a fixed set of issuing chains for HOLLAR, so the Polkadot link should be read as the project's own description of its ecosystem. Coverage from August 2025 said a public testnet was about to launch, and later coverage described HOLLAR as live. Check the current Hydration documentation before relying on any detail.

A stablecoin like HOLLAR is generally used as a dollar-like unit inside crypto markets. Traders use it to move between volatile assets without leaving the on-chain system, and people use it to hold value without the daily price swings of other tokens.

Within Hydration, search coverage places HOLLAR alongside the protocol's lending and borrowing features. One Hydration post described a yield product in which holders lock HOLLAR for a fixed period to earn a stated fixed rate. That post listed a 90-day lock and a 6.9% fixed annual rate. Terms like these are set by the protocol, can change or end, and do not guarantee a return.

Users who borrow against collateral also take on liquidation risk. If the value of the collateral falls too far, the position can be closed out, so borrowing carries risks beyond holding the stablecoin itself.

As of 2026-11-05, the data shows HOLLAR at about $0.997 per token, with a market capitalization of about $11.9 million. It ranked 1134th by market capitalization on that date. Circulating supply was about 11.94 million tokens, and the data lists total supply as the same figure with no maximum cap.

Trading volume over the prior 24 hours was about $753,000. The data shows a small change over seven days and over one year, which fits a coin built to stay near one dollar. The all-time high was about $1.046 on 2026-08-23, and the all-time low was about $0.930 on 2026-01-29, roughly 7% below the dollar target at that point.

A stablecoin's supply can grow when new collateral is deposited and shrink when loans are repaid. These figures change constantly, and they describe past data rather than a forecast of future prices.

HOLLAR carries several risks that readers should weigh before using it. The first is peg risk. Over-collateralization is designed to support the price, but the coin can still trade below or above one dollar, as the all-time low in the data shows.

Collateral risk is the second concern. If the assets backing the system fall sharply in value or become hard to sell, the protocol may face stress. Smart contract risk is also present, since bugs or exploits in the code could cause losses. Liquidity can be thinner than for the largest stablecoins, which may make large trades move the price.

For storage, use a wallet that supports the network where you hold HOLLAR, and confirm the token contract or asset identifier before you buy or receive it, since copycat tokens exist. Never share your seed phrase or private keys with anyone, and treat unexpected messages or sites asking for approvals with caution. Nothing here is financial advice.