Polkadot native stablecoin PUSD enters proposal discussion stage, may be minted only with DOT as collateral

Foresight News reports that the Polkadot native stablecoin PUSD, proposed by Gavin Wood, has entered the proposal discussion stage. The basic idea is that block producer rewards do not have to be paid in the highly volatile DOT, but can instead be distributed 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, with a mechanism similar to the HOLLAR stablecoin, allowing users to borrow PUSD by collateralizing DOT.

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