# Hydration > Finance made efficient Hydration is a decentralized finance appchain built on Polkadot. It combines token trading, lending and borrowing, and a native over-collateralized stablecoin in a single protocol. Hydration is a Layer-1 blockchain built on Polkadot that operates as a decentralized finance appchain, unifying trading, lending, and stablecoin issuance in one protocol. It combines multiple automated market maker designs with a money market and HOLLAR, its native over-collateralized stablecoin. The network serves traders, liquidity providers, and decentralized organizations across the Polkadot ecosystem. Trading runs through a shared liquidity pool alongside pools for correlated assets and isolated listings, allowing single-sided liquidity provision and support for assets with varying risk profiles. Borrowing is handled through a money market that lets users draw loans against deposited collateral. HOLLAR can be minted against collateral and is maintained through a stability mechanism that supports its peg. Hydration also provides treasury management and liquidity bootstrapping tools that let other decentralized organizations diversify holdings and launch their own tokens. HDX, the network's native token, is used for governance participation and staking rewards tied to protocol activity. Hydration is used by individual traders, liquidity providers, and decentralized organizations seeking integrated trading, lending, and stable value tools. - Type: Network - Sector: DeFi - Status: Active - Founded: 2020-08-01 - Profile: https://thegrid.id/profiles/hydration ## Products - [Hydration](https://thegrid.id/profiles/hydration): Hydration is a decentralised exchange operating as a purpose-specific blockchain that pools assets into one trading venue, plus stablepools and isolated pools. Users can swap assets, automate dollar-cost-averaging trades, and place over-the-counter trades, including trading protocol-issued bonds, while paying fees in any supported asset. Its appchain design settles trades and liquidations each block, limiting exploitation, while supporting smart contract compatibility and cross-chain transfers. (Decentralised Exchange, Live, Main Product) - [Hydration Money Market](https://thegrid.id/profiles/hydration): Hydration Money Market is a decentralised lending protocol built on a modified Aave v3 architecture that allows users to supply crypto assets to earn interest and borrow against accepted collateral. It also issues Hollar, an over-collateralized stablecoin targeting a value of approximately one dollar that users mint by depositing supported crypto assets into the borrow markets. A dedicated stability module supports the peg through direct stablecoin conversions, while partial liquidations are executed automatically at the start of every block to restore health factors and reduce all-or-nothing liquidation risk. Supported collateral spans multiple crypto assets across connected blockchains. (Decentralised Borrowing & Lending, Live) ## Assets - [Hydration (HDX)](https://thegrid.id/profiles/hydration): HDX is the governance token of Hydration, a decentralized finance appchain built on Polkadot. It is used for voting on protocol upgrades and parameters, earning protocol revenue through GIGAHDX staking rewards, and directing treasury-owned liquidity. The token has a fixed maximum supply with no ongoing inflation, so value accrual to holders comes from buybacks and staking rewards rather than new issuance. (Governance) - [HOLLAR (HOLLAR)](https://thegrid.id/profiles/hydration): HOLLAR is a decentralized stablecoin backed by crypto collateral, issued on Hydration and targeting a value of approximately one dollar. It is used for trading, as collateral in lending markets, and as a stable store of value across the Hydration protocol. It builds on Aave's GHO architecture for collateral management and liquidations, while a dedicated Stability Module monitors stableswap pools block by block to reinforce the peg. (Stablecoin) ## Links - [Main](https://hydration.net) - [Documentation](https://docs.hydration.net) - [Blog](https://hydration.net/blog) - [Twitter / X](https://x.com/hydration_net) - [Discord](https://discord.gg/kkmY35UxAG) - [Telegram](https://t.me/hydration_net) - [Substack](https://hydration.substack.com) - [GitHub](https://github.com/galacticcouncil) ## Legal This data is provided under two licensing models. Model 1 - open data. 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