Polkadot is set to introduce a new stablecoin, pUSD, through the RFC-155 proposal, raising concerns within the community. The stablecoin, backed by Polkadot's native token DOT, employs the Honzon protocol, which was previously used by Acala for the aUSD stablecoin that failed significantly. Community members express apprehension about repeating past mistakes, citing distrust in the Acala team and the risks associated with over-collateralizing pUSD with DOT alone.
Critics argue that the Polkadot ecosystem already offers more advanced native solutions, and pUSD's design could trigger liquidation cascades and selling pressure on DOT. While pUSD aims to enhance DeFi adoption, skepticism persists due to the legacy of aUSD's collapse and potential systemic risks.
Polkadot's pUSD Stablecoin Faces Skepticism Amid aUSD Collapse Concerns
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.