Palladium and Botanix Laboratories have announced the launch of a new stablecoin, PUSD, on bitcoin's first EVM-equivalent Layer 2 network, according to a press release sent to bitcoin Magazine.
The PUSD stablecoin, developed by Palladium Labs, has the unique feature of being 110% overcollateralized, a strategic measure aimed at improving its resilience against potential risks inherent to DeFi infrastructure. Importantly, the stablecoin's algorithmic monetary policy attempts to remain immune to governance changes or manipulation by administrator keys, with the goal of ensuring its integrity and reliability.
“To realize the true value of decentralized finance, cryptocurrencies must be freed from infrastructure that is susceptible to exploitation and manipulation,” said Palladium Labs CEO Akash Gaurav. “At Palladium, we designed this stablecoin for resilience and reliability. By leveraging the unique capabilities of Botanix EVM, we can radically increase the security and reliability of access to stablecoins for millions of people using bitcoin.”
By operating on Botanix EVM, which has been in development since early 2023, Palladium leverages the capabilities of this platform to improve the security and accessibility of stablecoin transactions for bitcoin users. Botanix EVM's underlying sidechain protocol, known as Spiderchain, plays a critical role in securing funds transferred from bitcoin's base layer to the EVM network.
“The importance of native stablecoins to the technological renaissance taking place in bitcoin cannot be understated,” said Willem Schroe, inventor of Spiderchain and co-founder of Botanix Labs. “We are delighted to support the Palladium team in launching your overcollateralized stablecoin on our EVM network.”
With the launch of PUSD on bitcoin's first EVM Layer 2 network, Palladium and Botanix Labs aim to meet the growing demand for secure and efficient DeFi solutions, seeking to pave the way for a new era of financial innovation on the bitcoin blockchain.
