💥 Gavin Wood discusses @Polkadot Network the future of stablecoins:

1. Looking forward to the launch of Hydration's HOLLAR —— it is decentralized and uses DOT as collateral, which is very important.

2. However, Polkadot cannot rely solely on ecological projects; it must have a native stablecoin:

- Directly governed by Polkadot

- Over-collateralized DOT

- Similar to DAI, becoming a core component of the protocol

3. Before the native stablecoin is released, Gavin prefers to use HOLLAR over USDC/USDT.

However, in practical applications (such as validator rewards and integrations), compatibility with USDC/USDT may still be needed to meet user demands.

4. In addition to “fully collateralized” stablecoins, Gavin is also considering a type of stablecoin (stable-ish):

- Does not need to be always fully over-collateralized

- Accepts certain volatility

- Allows DOT to have an intermediate state between high volatility and full anchoring

- The goal is to “weaken volatility,” reduce costs while maintaining practicality

5. This is challenging, but worth it.

Polkadot can have a multi-tiered stablecoin system:

- Native stablecoin (secure anchoring)

- Type of stablecoin (reduce costs, enhance flexibility)

- Ecological stablecoin (expand liquidity and scenarios)

Gavin's core perspective: “Polkadot needs to view stablecoins as a protocol-level strategic resource, not only having a native stablecoin but also exploring innovative stable-ish models to ensure the long-term sustainability of DoP and the ecosystem.”

#Polkado