Polkadot Launches Native dotUSD Stablecoin Through OpenGov

Polkadot has launched dotUSD on its mainnet on Thursday, giving the community a local dollar-pegged stablecoin that’s ruled by its on-chain OpenGov system. The launch means dotUSD doesn’t have a non-public firm appearing as its issuer. As a substitute, DOT holders may have a task in making key choices in regards to the stablecoin by Polkadot’s governance system. 

In line with the platform’s forum, the launch was authorised by OpenGov Referendum 1944, which created dotUSD and set out how it might function.

The referendum additionally authorised a DOT-dotUSD liquidity pool and treasury funding to offer liquidity throughout the early stage of the launch. The proposal handed with 98.4% help, backed by about 4.3 million DOT. 

Stablecoin begins with a easy mannequin 

dotUSD runs on Polkadot Hub and is predicated partly on the design of Liquity v2’s BOLD stablecoin. Nevertheless, Polkadot is just not beginning with the total system without delay. The primary stage makes use of an easier technique to maintain dotUSD near $1, permitting the stablecoin to start circulating earlier than the deliberate DOT-backed system is added. 

For now, customers can mint dotUSD one-for-one towards USDT by a Peg Stability Module. In easy phrases, customers can present USDT and obtain the identical worth in dotUSD. They will additionally redeem their dotUSD for $1 value of USDT, though an preliminary restrict has been positioned on the quantity of dotUSD that may be equipped.

Subsequent section will use DOT 

This primary stage additionally means customers can maintain dotUSD with out having DOT in the identical account. The system doesn’t but want value oracles or liquidation guidelines, that are anticipated to develop into a part of the later model of the stablecoin.

The larger change is deliberate for the subsequent section. Polkadot desires customers to have the ability to lock DOT as collateral and mint dotUSD towards it. That system will add value oracles, liquidations, a stability pool, and redemption options based mostly on the Liquity mannequin. Debtors can even be capable to select rates of interest for his or her positions.

DotUSD follows an earlier proposal 

The street to the launch began earlier. In September, Referendum 1944 was still being voted on by Polkadot’s OpenGov neighborhood. 

At the moment, 97.6% of votes forged supported the proposal, with about 2.39 million DOT counted on the Aye aspect. The proposal was submitted by the Polkadot Neighborhood Basis as a plan to create a protocol-owned stablecoin for the community.

The concept of a DOT-backed stablecoin is older than the present launch. In September 2025, Acala co-founder Bryan Chen proposed pUSD, a local stablecoin that will use DOT as collateral. That earlier thought helped type a part of the background behind plans for a Polkadot-native stablecoin.

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