Polkadot weighs native DOT-backed algorithmic stablecoin

Polkadot community members are showing strong early support for a proposal to launch pUSD, a native algorithmic stablecoin fully backed by DOT tokens.

A proposal for Polkadot to create its own native algorithmic stablecoin, exclusively backed by DOT token, is gaining strong early support.

Co-founder and chief technology officer of Polkadot chain’s Acala, Bryan Chen, introduced a proposal on Sunday to develop a native stablecoin for the Polkadot network. The stablecoin would be algorithmic, exclusively backed by Polkadot (DOT) tokens, and would use the pUSD ticker.

The proposed stablecoin would leverage the decentralized stablecoin and collateralized debt position protocol Honzon on the Acala network. The system is meant to reduce or replace dependence on Tether’s USDt (USDT) and Circle’s USDC (USDC) stablecoins.

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