Should Polkadot Hub have NATIVE pUSD based on the Honzon Protocol?
https://polkadot.subsquare.io/referenda/1761"RFC-155, authored by Bryan Chen, proposes pUSD to be implemented using the Honzon protocol stack. This Honzon protocol was previously used to power aUSD, but is now proposed to be adapted for DOT-only collateral on Polkadot Hub.
Stablecoins are a central use of blockchains, with USDT and USDC being the dominant stablecoins in the Polkadot ecosystem. Earlier attempts to have an ecosystem wide "algorithmic" stablecoin (aUSD, based on Honzon) did not succeed for various reasons while current efforts (Hollar from Hydration, based on Aave) are underway but are considered third-party.
RFC 155, under consideration by the Polkadot Fellows, is to have DOT (and solely DOT) be the only source of collateral. This would be expected to be the NATIVE stablecoin for Polkadot Asset Hub, reduce/replace dependence on USDT/USDC including OpenGov DOT-USDC/USDT stablecoin conversion process.
A Polkadot Asset Hub "system chain" issuing its own stablecoin may be seen as a political threat to "third-party" stablecoin efforts (from parachains like Hydration to central issuers like Circle and Tether). While there are notoriously many technical issues involved in robust algorithm stablecoin design , the issues are not purely technical. We believe this kind of decision should involve the OpenGov DOT tokenholders and open the discussion to decentralized voices at large through this WFC."
