Polkadot launched its stablecoin. At launch: $2.5 million in USDT for minting and $2.5 million in DOT for the pool
dotUSD has been live on mainnet since October 8, and it has no issuer. There’s no company issuing it, no bank holding reserves, and no regulatory approval either. DOT holders are in charge
First phase: mint 1:1 against USDT, with a cap. In other words, to get dotUSD, you bring USDT
So it works out like this:
- The USDT risk remains
- Smart contract risk is added on top
- And the word “native” is used for marketing
Minting via USDT doesn’t add demand for $DOT; DOT is only in the $2.5 million pool. On launch day, it traded at around $1.032
As long as there’s only USDT inside, it’s a wrapper, not a new dollar
#Polkadot #Stablecoin
dotUSD has been live on mainnet since October 8, and it has no issuer. There’s no company issuing it, no bank holding reserves, and no regulatory approval either. DOT holders are in charge
First phase: mint 1:1 against USDT, with a cap. In other words, to get dotUSD, you bring USDT
So it works out like this:
- The USDT risk remains
- Smart contract risk is added on top
- And the word “native” is used for marketing
Minting via USDT doesn’t add demand for $DOT; DOT is only in the $2.5 million pool. On launch day, it traded at around $1.032
As long as there’s only USDT inside, it’s a wrapper, not a new dollar
#Polkadot #Stablecoin