HOLLAR, issued by the Hydration Protocol smart contracts under the governance of staked HDX tokenholders, is an over-collateralized stablecoin that targets a value of approximately one U.S. dollar (USD) and is stabilized by the onchain HOLLAR Stability Module [S1][S2][S3].

Each HOLLAR references the U.S. dollar (USD) at an approximate 1:1 target and represents a claim against crypto collateral held within the protocol [S2]. Holders do not receive yield; HOLLAR is price-stable and non-rebasing by default [S2]. Minters deposit collateral including DOT, ETH, vDOT, USDT, USDC, tBTC, or WBTC and bear a variable borrow interest cost documented at 5.12% per year, which adjusts dynamically with supply and demand [S2][S4].

HOLLAR is issued natively by the Hydration protocol and is not issued by a single corporate entity; protocol parameters are set through onchain governance by staked HDX tokenholders in the Hydration DAO [S1][S2][S3]. The holder's claim is a debt instrument against over-collateralized crypto reserves, with minting capped by a loan-to-value ratio (a documented example mints up to 750 USD against 1,000 USD of ETH at 75% LTV) [S2]. Minting and holding are permissionless and open to protocol users [S1][S2]. Positions unwind by repaying HOLLAR plus accrued interest to release collateral, and the Stability Module supports the peg via stablecoin conversion near 1 USD and smart buybacks [S2].

HOLLAR is a native asset on the Hydration appchain, an application-specific Layer-1 blockchain built on Polkadot [S5][S2]. Minting occurs when users supply collateral through the borrowing markets up to the asset's LTV limit; settlement is onchain at block cadence, with partial liquidations and Stability Module stableswap-pool monitoring running each block [S2][S4].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://hydration.net/" },
    { id: "S2", url: "https://docs.hydration.net/quick_start/hollar/" },
    { id: "S3", url: "https://docs.hydration.net/quick_start/hdx_token/" },
    { id: "S4", url: "https://docs.hydration.net/products/borrowing/overview/" },
    { id: "S5", url: "https://docs.hydration.net/quick_start/hydration/" },
  ]}
/>


# Asset off peg methodology

## 1. Overview

The asset off peg metric is defined as the percentage deviation of a tokenized asset's daily closing market price from its designated reference (pegged) asset price. This metric is utilized to assess the stability and peg-keeping performance of stablecoins, wrapped assets, and other pegged tokens. The deviation is calculated relative to the reference price, representing either a premium or a discount in the market. Daily tracking of this metric is performed to enable the monitoring of peg stability and the identification of potential de-pegging events across various asset classes.

## 2. Data sources

- **EVM chain events**: `AnswerUpdated` events from Chainlink aggregator contracts, covering EVM-compatible chains (Ethereum, Polygon, and others)
- **Asset metadata**: Reference asset configurations and token mappings
- **External data**: End-of-day price feeds for tokenized assets

## 3. Step-by-step calculation

### Component A: Retrieve asset prices and reference mappings

- **Purpose**: Identify the daily closing price of each asset and map it to its designated reference currency
- **Logic**: Daily closing prices for each asset are retrieved from end-of-day price feeds. Each asset is mapped to its designated reference currency (such as the U.S. Dollar, Euro, or British Pound) using asset metadata. For assets pegged to the U.S. Dollar, a fixed reference rate of 1.0 is assigned. For assets pegged to other fiat currencies, the corresponding Chainlink FX feed is identified.
- **Key fields**: `asset_price` (daily closing price of the asset), `reference_asset` (the target peg currency), `fx_feed_name` (the identifier for the Chainlink FX feed)

### Component B: Resolve daily reference prices

- **Purpose**: Determine the daily USD value of the reference peg currency
- **Logic**: Daily FX rates are extracted from Chainlink oracle price feeds on EVM-compatible chains. To account for days without oracle updates, the last recorded rate for each FX feed is carried forward to construct a continuous daily time series. The daily reference price is then established by matching the asset's mapped FX feed or fixed rate with the corresponding daily rate.
- **Key fields**: `price` (the FX rate from the oracle feed), `timestamp` (the date of the rate), `reference_price` (the resolved daily reference price in USD)

### Component C: Calculate peg deviation

- **Purpose**: Compute the final percentage deviation of the asset price from its reference price
- **Logic**: The daily asset price and the resolved daily reference price are aligned by timestamp and asset identifier. The percentage deviation is calculated by subtracting the reference price from the asset price, and dividing the result by the reference price. Days where a reference price cannot be resolved are excluded from the final dataset.
- **Key fields**: `asset_off_peg` (the percentage deviation from the peg), `timestamp` (the daily grain timestamp)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

(market_price - reference_price) / reference_price

Percentage deviation of the asset price from its reference peg.

Asset off peg

Stablecoins

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Hydration is a Polkadot parachain specialized in trading, lending, and stablecoin issuance.

HDX holders own and govern the protocol. Hydration’s investors include KR1 plc, Hypersphere, etc.

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Blockchains (L2)

Hydration

Hydrated Dollar (HOLLAR) is a U.S. dollar stablecoin issued by Hydration.

Each token tracks one U.S. dollar and is a collateral-backed contractual exposure rather than a direct claim on the issuer.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Hydration.

HOLLAR has been issued on Hydration EVM since September 2025.

Hydrated DollarHOLLAR