The proposal to launch pUSD, a native algorithmic stablecoin backed by DOT, gains momentum despite concerns over potential risks tied to DOT price fluctuations.
Polkadot community members are rallying behind a proposal to introduce pUSD, a new algorithmic stablecoin fully backed by DOT tokens. The stablecoin would reward block producers with pUSD instead of DOT, enabling users to borrow pUSD by collateralizing their DOT holdings. However, concerns about potential liquidation risks if DOT prices decline persist within the community.