Palladium and Botanix Labs announced the launch of a new stablecoin, PUSD, on the first layer 2 network equivalent to Bitcoin's EVM, according to a press release sent to Bitcoin Magazine.
The PUSD stablecoin, developed by Palladium Labs, has the unique feature of 110% over-collateralization, a strategic measure aimed at enhancing its resilience against potential risks inherent in the DeFi infrastructure. Most importantly, the algorithmic monetary policy of a stablecoin attempts to remain immune to management changes or manipulation by administrator switches, with the aim of ensuring its integrity and reliability.
“To realize the true value of DeFi, cryptocurrencies need to be freed from infrastructure that is vulnerable to exploitation and manipulation,” said Akash Gaurav, CEO of Palladium Labs. “At Palladium, we designed this stablecoin for resiliency and reliability. By leveraging the unique capabilities of the Botanix EVM, we can radically increase the security and reliability of access to stablecoins for the millions of people who use Bitcoin.
Palladium runs on the Botanix EVM, which has been in development since early 2023, and leverages the capabilities of this platform to enhance the security and accessibility of stablecoin transactions for Bitcoin users. Botanix EVM's underlying sidechain protocol, known as Spiderchain, plays a pivotal role in protecting funds transferred from the Bitcoin base layer to the EVM network.
“The importance of native stablecoins in the technological renaissance taking place on Bitcoin cannot be overstated,” said Willem Schro, inventor of Spiderchain and co-founder of Botanix Labs. “We are pleased to support the Palladium team in launching their over-collateralized 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, and seek to pave the way for a new era of financial innovation on the Bitcoin blockchain.
