First Stablecoin Will Be Launched On Cardano (ADA) Network, What Does It Mean?

On the Cardano blockchain, a new type of algorithmic stablecoin, called AgeUSD, is set to be launched for the first time. Multinational blockchain technology company Emurgo first announced the AgeUSD stablecoin in January 2021. A partnership was established between Emurgo, Ergo Foundation, and IOHK for this project. The AgeUSD Stabilcoin is the result of a collaboration between Emurgo, Ergo Foundation, and IOHK, to be launched soon.

IOHK announced that smart contracts could be used with the Alonzo update, which will begin testing this month and is scheduled for August. It was announced that the AgeUSD stablecoin will be released as soon as smart contracts are implemented on the Cardano network.

AgeUSD is part of a new stablecoin class that uses algorithms instead of collateral to protect value. In stablecoins like USDT, the value of each USDT is fixed by a value of one USD. Some stablecoins have been pegged to baskets of other cryptocurrencies to reduce dependence on central value stores such as traditional currencies. The amount of each cryptocurrency in the basket is determined by smart contracts that trade on the open market. AgeUSD proposes a rules-based approach to value setting in order to mitigate the impact of cryptocurrency market volatility. According to Emurgo, the goal of the project is to automate as much as possible within the mathematics of the protocol, rather than relying on dynamic transaction posts that can be disrupted by blockchain overload.

Cardano developers are trying to strengthen the network with new approaches and new solutions. All efforts continue unabated to make the Cardano network a self-sustaining system. ADA investors are watching every development carefully and increasing their ADA investments day by day. With the participation of corporate companies in the coming days, ADA will grow stronger and rise.

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