dotUSD

DOTUSD

dotUSD is Polkadot's native, over-collateralized stablecoin pegged to the US dollar. In its second phase, every dotUSD minted will be backed by DOT locked in the protocol at more than its dollar value, so demand for dotUSD becomes direct demand for DOT. This also removes DOT from liquid circulation and keeps the value of Polkadot's stablecoin economy inside Polkadot rather than with an outside issuer. It is created and owned by the Polkadot protocol itself, has no issuer, and operates autonomously through on-chain logic governed by Polkadot OpenGov. It was established by DOT holders through OpenGov Referendum 1944 as the protocol's primary stable-value instrument for payments, savings, remuneration and treasury operations. dotUSD closes a structural gap in the Polkadot ecosystem. Before dotUSD, every user, application and treasury operation on Polkadot depended on stablecoins issued and governed by external parties. Centralized stablecoins carry kill switches, can freeze accounts and blacklist addresses, and operate under the jurisdiction of individual nation-states, while stablecoins bridged from other networks keep their collateral, governance and value accrual elsewhere. dotUSD lives on Polkadot Hub, Polkadot's system chain for assets and its native DEX, and draws on the Liquity v2 (BOLD) architecture. At launch, users mint dotUSD one-to-one against USDT through a Peg Stability Module and can redeem it back for $1 of USDT, subject to a supply cap. Through coinage on Polkadot's People Chain, dotUSD can also be held and spent as privacy-preserving bearer coins, making it a privacy asset as well as a stablecoin.