Gavin Wood proposed that Polkadot's native stablecoin PUSD has entered the proposal discussion stage

Gavin Wood's proposal for Polkadot's native stablecoin, PUSD, has entered the discussion phase. His underlying concept is reportedly to replace the highly volatile DOT with block producer rewards, which could instead be issued in a stablecoin. Therefore, the Polkadot protocol itself (most likely on the Asset Hub) will issue a new stablecoin, called PUSD, collateralized solely by DOTs. Similar to the HOLLAR stablecoin, users can borrow PUSD by pledging DOTs. However, the community believes that a large-scale stablecoin would incur correlation risks. For example, a drop in the DOT price could trigger liquidations, which would necessitate the sale of DOTs held in the vault.