Palladium and Botanix Labs launch Bitcoin-based stablecoin on Bitcoin’s first EVM Layer 2

According to a press release sent to Bitcoin Magazine, Palladium and Botanix Labs announced the launch of PUSD, a new stablecoin on Bitcoin’s first EVM-equivalent Layer 2 network.

Developed by Palladium Labs, the PUSD stablecoin boasts a unique feature of 110% overcollateralization, a strategic move to enhance resilience to potential risks inherent in DeFi infrastructure. Importantly, a stablecoin’s algorithmic monetary policy attempts to remain immune to governance changes or manipulation by custodian keys to ensure integrity and reliability.

“To unlock the true value of decentralized finance, cryptocurrencies must move away from infrastructure that is vulnerable to abuse and manipulation,” said Akash Gaurav, CEO of Palladium Labs. “At Palladium, we designed this stablecoin for resilience and reliability. By leveraging the unique capabilities of the Botanix EVM, we can fundamentally increase the security and reliability of stablecoin access for the millions of people who use Bitcoin.”

Operating on the 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 native sidechain protocol, known as Spiderchain, plays a pivotal role in securing funds transferred from the Bitcoin base layer to the EVM network.

“The importance of a native stablecoin to the technological renaissance taking place in Bitcoin cannot be overstated,” said Willem Schroe, inventor of Spiderchain and co-founder of Botanix Labs. “We are excited to support the Palladium team in launching an overcollateralized stablecoin on the EVM network.”

By launching 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 pave the way for a new era of financial innovation on the Bitcoin blockchain. I am doing it.