Polkadot’s pUSD Stablecoin Faces Skepticism Amid Hopes for DeFi Growth

Polkadot (DOT) is preparing to launch its new stablecoin, pUSD, under the RFC-155 proposal, with the community presenting it as a pivotal step to strengthen DeFi adoption, reduce reliance on USDT and USDC, and foster greater ecosystem independence. However, concerns are surfacing that history may repeat itself, recalling the troubled past of Acala’s failed aUSD stablecoin.

pUSD will be over-collateralized, fully backed by DOT, and deployed on Asset Hub using the Honzon protocol created by Acala. While designed to ensure stability, skepticism lingers due to the same framework being tied to aUSD’s collapse. Many community members highlight that Acala’s handling of the aUSD fallout, including its controversial explanations and lack of compensation, eroded trust. Some have called for Polkadot to move forward independently of Acala’s influence and for the Technical Council to take full accountability in governance to avoid repeating mistakes.

The proposed stablecoin also faces structural risks since it will be backed solely by DOT. Without a multi-asset collateral model, the system could trigger liquidation cascades and add downward pressure on DOT during volatility. Critics draw parallels with MakerDAO’s early single-asset DAI, which later diversified into Multi-Collateral DAI (MCD) to strengthen resilience. Community members caution that repeating a single-token model may expose Polkadot to unnecessary risks.

Additionally, alternatives within the Polkadot ecosystem, such as HOLLAR built on Hydration runtime, are being championed as more innovative and better suited for appchains. Supporters argue that Polkadot should leverage its unique Substrate framework rather than adopting legacy approaches.

Despite the doubts, pUSD represents a strategic opportunity to unlock Polkadot’s DeFi potential. Its success hinges on governance transparency, collateral diversification, and the ability to rebuild trust after Acala’s past failures. With DOT’s capped supply at 2.1 billion, pUSD could fuel sustainable growth—if executed with caution and independence.