# HOLLAR borrow rate: 4.5% → 5.5% APY

HOLLAR is trading 91 bps under peg, the HSM has spent its buyback inventory, and the HOLLAR pools are weighted roughly 72/28 towards HOLLAR. This referendum raises the fixed HOLLAR borrow rate on the Hydration money market from 4.5% to 5.5% APY, half a point above the launch rate, to make repaying HOLLAR more attractive than holding borrowed HOLLAR and to lift protocol revenue on the 10.8M HOLLAR currently borrowed.

What it changes: the HOLLAR reserve on the main market is pointed at a new fixed-rate interest strategy, deployed at 0x382B1A0A1728A747Ccc0ac8fd3D225f76F2A5944 with the rate set in its constructor. The GIGAHDX and BIL markets keep their own rates. Interest continues to accrue to the protocol in full. The rate shown in the UI updates on the next HOLLAR borrow or repay after enactment.

What it does not do: no caps, collateral parameters or oracles change, and no position is forced. 

Expected revenue at today's debt: about $100k a year more, roughly $560k in total.


# HOLLAR Borrow Rate Referendum

- **What is changing:** The HOLLAR borrow rate is going up from 4.5% to 5.5% APY.
- **Why:** HOLLAR is trading below its peg, the HSM has no buyback inventory left, and most pool money is in HOLLAR. A higher rate makes paying back HOLLAR loans more attractive.
- **How:** The HOLLAR market gets a new fixed-rate interest setup. The GIGAHDX and BIL markets keep their own rates.
- **Money:** The protocol still keeps all the interest. This should add about $100k a year, for about $560k total, based on the 10.8M HOLLAR borrowed today.
- **UI note:** The rate shown in the app updates after the next HOLLAR borrow or repay.
- **What stays the same:** No caps, collateral rules, or oracles change, and no one is forced to do anything.

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HOLLAR borrow rate: 4.5% → 5.5% APY

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Origin able to dispatch a whitelisted call.

 Origin for spending very high amounts of HDX(<= 50M HDX) from the treasury as well as generally administering it.

Origin able to spend up to 2,222,222 HDX from the treasury at once.

Origin able to spend up to 50K HDX from the treasury at once.

Origin able to perform specific Omnipool-related actions.