Polkadot plans to launch a native stablecoin dotUSD: initial funding of 5 million USD

The Polkadot community has initiated OpenGov proposal number 1944, aiming to create a native decentralized stablecoin dotUSD and establish it as the main stable value asset of the Polkadot ecosystem. The proposal is currently undergoing governance voting. According to the proposal, dotUSD will adopt an over-collateralization mechanism, allowing users to mint dotUSD by locking DOT in the future; the system will also set up a stability pool, liquidation mechanism, and redemption mechanism to maintain its peg to the US dollar.

The proposal plans to use funds from the Polkadot treasury to provide initial liquidity for the DOT/dotUSD liquidity pool, with 2.5 million USDT allocated for minting dotUSD, and an additional 2.5 million USD worth of DOT added to the liquidity pool, totaling an initial fund of 5 million USD. dotUSD is planned to be launched in phases, with the first phase using USDT as reserve support for minting, and the second phase introducing a complete DOT collateral treasury, oracle, stability pool, liquidation, and redemption mechanisms.