Cardano Set to Launch Its First Stablecoin AgeUSD
  • AgeUSD will be the first stablecoin to launch on the network.
  • Emurgo originally announced the AgeUSD stablecoin in January 2021.
  • The stablecoin will not rely on collateralized debt positions.

Multinational blockchain company Emurgo, originally announced the AgeUSD stablecoin in January 2021. The firm has since declared a partnership with Charles Hoskinson’s Input-Output Global, IOHK’s parent company.

According to IOHK CTO, Roman Pellerin, the AgeUSD stablecoin will be open on Cardano as soon as smart contract features launch on the blockchain.

Emurgo aims to prevent events like MakerDAO’s Black Thursday, which appeared through weaknesses in its DAI collateralization mechanism. In March 2020, a mass liquidation of a wide majority of maker vaults caused around $4 million in DAI to be under-collateralized.

AgeUSD’s ‘Staticoin’ protocol-inspired form does not rely on collateralized debt positions (CDPs), unlike Ethereum-based crypto-backed stablecoins.

The stablecoin runs on the Ergo blockchain and works to automate within the mathematics of the protocol itself. Reserve providers pay Ergo’s local currency (ERG) to mint and store coins symbolizing the underlying collateral.

Users of the stablecoin can also store ERG in the reserves to mint AgeUSD. The protocol only permits this if there are enough reserves above its reserve ratio. Notably, banks also use a similar process to loan out funds.

Cardano’s ADA can also serve as collateral to mint reserves. However, the possible downside is that only these two assets support the stablecoin, whereas various cryptos back DAI.

This article was first published on

Continue reading on CoinQuora

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

(Excerpt) Read more Here | 2021-04-18 02:30:00
Image credit: source


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.