TechFlow news, on September 27, Gavin Wood's proposed native stablecoin PUSD for Polkadot entered the proposal discussion phase. His basic idea is that block producers' rewards do not need to be paid in highly volatile DOT, but could instead be distributed in stablecoins. Therefore, the Polkadot protocol itself (most likely on Asset Hub) would issue a new stablecoin named PUSD, which would be backed solely by DOT as collateral, with a mechanism similar to the HOLLAR stablecoin—users can borrow PUSD by locking up DOT as collateral.
However, the community believes that if this stablecoin grows to a large scale, it could introduce correlation risk—for instance, a drop in DOT price might trigger liquidations, which would require selling DOT held in the treasury.
