The Polkadot native stablecoin PUSD proposed by Gavin Wood has entered the proposal discussion stage

ChainCatcher News, according to official information from PolkaWorld, the native stablecoin PUSD proposed by Gavin Wood has entered the proposal discussion stage.

It is reported that the basic idea is that block producer rewards do not have to be distributed in the highly volatile DOT, but can be paid in a stablecoin. Therefore, the Polkadot protocol itself (most likely on Asset Hub) will issue a new stablecoin named PUSD. This stablecoin will only use DOT as collateral, and its mechanism is similar to the HOLLAR stablecoin. Users can borrow PUSD by collateralizing DOT.

However, the community believes that if the scale of this stablecoin becomes very large, it could trigger correlation risks. For example, a drop in DOT price would trigger liquidation, and liquidation would mean that the DOT in the treasury must be sold.