PANews reported on September 27th that Gavin Wood's proposed Polkadot native stablecoin, PUSD, has entered the proposal discussion phase. His underlying concept is that block producer rewards can be distributed in stablecoins, rather than the highly volatile DOT. Therefore, the Polkadot protocol itself (most likely on the Asset Hub) will issue a new stablecoin, named PUSD, collateralized solely by DOTs. Similar to the HOLLAR stablecoin, users can borrow PUSD by pledging DOTs. However, the community believes that if this stablecoin becomes too large, it will incur correlation risks. For example, a drop in the DOT price could trigger liquidations, which would necessitate the sale of DOTs held in the vault.PANews reported on September 27th that Gavin Wood's proposed Polkadot native stablecoin, PUSD, has entered the proposal discussion phase. His underlying concept is that block producer rewards can be distributed in stablecoins, rather than the highly volatile DOT. Therefore, the Polkadot protocol itself (most likely on the Asset Hub) will issue a new stablecoin, named PUSD, collateralized solely by DOTs. Similar to the HOLLAR stablecoin, users can borrow PUSD by pledging DOTs. However, the community believes that if this stablecoin becomes too large, it will incur correlation risks. For example, a drop in the DOT price could trigger liquidations, which would necessitate the sale of DOTs held in the vault.
Gavin Wood proposed that Polkadot's native stablecoin PUSD has entered the proposal discussion stage
PANews reported on September 27th that Gavin Wood's proposed Polkadot native stablecoin, PUSD, has entered the proposal discussion phase. His underlying concept is that block producer rewards can be distributed in stablecoins, rather than the highly volatile DOT. Therefore, the Polkadot protocol itself (most likely on the Asset Hub) will issue a new stablecoin, named PUSD, collateralized solely by DOTs. Similar to the HOLLAR stablecoin, users can borrow PUSD by pledging DOTs. However, the community believes that if this stablecoin becomes too large, it will incur correlation risks. For example, a drop in the DOT price could trigger liquidations, which would necessitate the sale of DOTs held in the vault.
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