Big news for Polkadot fans: Acala’s CTO and co-founder Bryan Chen has proposed a DOT-collateralized stablecoin, called pUSD, aiming to keep Polkadot liquidity and value inside the ecosystem.
The community is already showing strong support. Over 75% of voters have backed the proposal so far, with 1.4 million DOT tokens, worth roughly $5.6 million, committed. Voting remains open for 24 more days, giving the community plenty of time to weigh in.
pUSD would operate via Acala’s Honzon protocol, leveraging decentralized collateralized debt positions. Chen’s pitch is simple: Polkadot needs its own stablecoin to prevent funds, benefits, and security from flowing to external platforms like USDT and USDC.
Here’s how it works: pUSD would be overcollateralized, and holders could even earn interest through an optional savings module funded by system stability fees. The design keeps everything on-chain and automated, reducing reliance on centralized intermediaries.
The goal is ambitious: cut Polkadot’s dependence on external stablecoins while keeping value circulating within its ecosystem. Algorithmic stablecoins like pUSD maintain their peg through economic incentives in smart contracts, not centralized collateral.
Everything is managed automatically, offering a fully permissionless and decentralized solution.
Yes, algorithmic stablecoins are still controversial, TerraUSD’s collapse serves as a cautionary tale—but their decentralization and autonomy continue to attract attention.
CryptoQuant CEO Ki Young Ju even highlighted the potential for “dark stablecoins” that operate outside traditional regulatory frameworks.
The takeaway: if pUSD launches successfully, it could strengthen Polkadot’s ecosystem, reduce reliance on USDT and USDC, and offer a fully on-chain, decentralized stablecoin. This is one to watch for anyone interested in the future of permissionless finance.
