PUSD_Polyquity wallet

What is PUSD_Polyquity (PUSD)?

PUSD comes from PolyQuity, a collateralised borrowing system on Polygon built along the lines of Liquity. Nobody buys PUSD into existence: it is created as debt. A borrower locks the network's own coin as collateral, opens a position and mints PUSD against it, and the token is destroyed again when the loan is repaid. Everything circulating is somebody's outstanding debt, collateralised on-chain.

That design means the dollar peg is not held by a bank account. It is held by the collateral behind each position and by the redemption mechanism: PUSD can be returned to the protocol in exchange for collateral at face value, which gives arbitrage a reason to push the price back toward a dollar. It also means the health of the token tracks the health of the collateral, and positions can be liquidated when coverage falls too low.

What matters when you hold it

• Fees on Polygon are paid in the network coin, never in PUSD, so a balance of PUSD alone cannot be moved.
• The ticker is crowded. Several unrelated projects have shipped a token called PUSD on different chains, and they share nothing but three letters. The token entry in the wallet, bound to one specific Polygon contract, is what identifies this one.
• A stablecoin that can be redeemed against collateral is only redeemable through the protocol, not through an issuer's support desk.

In Tangem the asset is tracked as its own entry on Polygon, and the send screen names the network the transfer leaves on before the card is tapped to sign, which is worth a glance when a ticker this common is involved. Holding a debt-backed stablecoin under a key that stays in the chip keeps the part you control simple.

Supported networks in Tangem (1): Polygon POS.