Blockchain networks and crypto service firms continue to be the reckoning force behind the growth of the cryptocurrency space, even as the boom of the digital assets continues to attract investors into the space. These Blockchain networks and firms have continued to delight their users with innovative products and bespoke services, as they poise themselves as the significant contributors to the growth of the Blockchain space. Cardano- the cryptocurrency network that poses as a smart contract platform and its native token ADA has been a success this week, is set to be the latest Blockchain platform to incorporate a stablecoin into its network.
AgeUSD is backed by both Ergo and Cardano
The algorithmic stablecoin- AgeUSD, is set to launch on Cardano and will be the first of its kind on the Blockchain-based network. According to the announcement by Emurgo, who doubles as the developers as the developers of the stablecoin, they have now announced that Cardano will play host to the stablecoin when it finally launches smart contracts on its own Blockchain.
Before now, the technology company has announced that they had partnered with IOHK and the Ergo Foundation to foster the launch of the Cardano-bound stablecoin. According to the developers, the AgeUSD stablecoin was designed without the need for collateralized debt positions. The idea behind this will prevent the stablecoin from avoiding liquidation events, just like the black Thursday incident.
The stablecoin, despite launching on Cardano, will also run on the Ergo Blockchain and will likely operate under the powers of the ERG-owned protocol itself. Just like the usual practice under the Ergo Blockchain, the AgeUSD users who boast enough reserves in their portfolio can mint new tokens with the ERG of Ergo. On the other hand, Cardano users can also use excess ADA to mint new reserves, as they are also one of the partners behind the project.
AgeUSD may be limited, unlike DAI
Unfortunately, unlike the DAI stablecoin project, AgeUSD is backed by only two digital assets- ERG and ADA. However, while the project sees the light of the day, it will be expected to incorporate itself with other digital assets, as it sets to become a Blockchain household stablecoin. The stablecoin is now set to launch this quarter on Cardano and Ergo Blockchain, both of which have seen their tokens- ADA and ERG hit new highs recently.
Unfortunately for ADA, it has lost its position as the sixth most valuable cryptocurrency to Dogecoin this week, but the token has been hit new highs in the past few weeks. The token’s market cap is currently more than $45 billion, as it trades at $1.48 in today’s prices. The ADA token, alongside Dogecoin, had started to witness an uprising in fortunes since last year, as the altcoins rally began. On the other hand, ERG, despite falling by 0.5% in the last 24hours, its token still trades at $3.81 at the time of writing.