The native stablecoin PUSD of Polkadot has entered the proposal discussion stage and may only be minted by collateralizing DOT.

According to Jinse Finance, the native stablecoin PUSD proposed by Gavin Wood has entered the proposal discussion stage. It is reported that his basic idea is that the rewards for block producers do not have to be distributed in the highly volatile DOT, but can be issued in stablecoins. Therefore, the Polkadot protocol itself (most likely will be on the Asset Hub) will issue a new stablecoin named PUSD, which will only have DOT as collateral. The mechanism is similar to the HOLLAR stablecoin, where users can borrow PUSD by collateralizing DOT. However, the community believes that if the scale of this stablecoin is very large, it will trigger correlation risks. For example, a fall in DOT price could trigger liquidation, and liquidation means that the DOT in the treasury must be sold.