Polkadot asking for Votes to release DOT-backed algorithmic stablecoin pUSD
Polkadot community members are voting!
Polkadot community members are showing strong early support for a proposal to launch pUSD. A native algorithmic stablecoin fully backed by DOT tokens.
Let's break into pUSD
Under Polkadot referendum 1761, a native stablecoin backed by DOT called pUSD, already has 75% support w/ $5.6M in DOT Votes. FYI, the voting period is open for 24-days. Additionally, Polkadot is offering an interest-earning option during this timeframe. The referendum will also reduce reliance upon USDT and USDC all while streamlining the OpenGov DOT-USDC/USDT conversion mechanism. This pUSD offering is structured as an over-collateralized debt token, allowing users to borrow against their DOT holdings without liquidating them.
Impact to DOT price?
Keeping DOT's ATH price of $54.49 back in '21, one can hope this only helps price go up linear. I am not guaranteeing that will happen as I don't have any pull with DOT. So far I don't think DOT has read the referendum as the price is little moved.
Summary
Do you get the sense that Polkadot Aims to Unlock DeFi Potential With Native pUSD Stablecoin. Can spark DOT 2.0 and hence a massive price rally? Time will tell.
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