Gavin Wood has proposed the introduction of a native stablecoin for Polkadot, named PUSD, which has now entered the proposal discussion stage. The stablecoin aims to distribute block producer rewards in a stable currency rather than the volatile DOT. PUSD will be issued by the Polkadot protocol, likely on the Asset Hub, and will be collateralized solely by DOTs. Users can borrow PUSD by pledging DOTs, similar to the HOLLAR stablecoin model. The community has raised concerns about potential correlation risks if PUSD grows too large. A significant drop in DOT's price could trigger liquidations, necessitating the sale of DOTs held in the vault, which could further impact the market.