Learn about the first stable digital currency that is preparing to work on the Cardano blockchain
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer Learn about the first stable digital currency that is preparing to work on the Cardano blockchain
Multinational blockchain technology company Emurgo announced the digital stablecoin AgeUSD in January 2021.
The same company then announced a partnership with Input-Output Global, the company behind the Cardano project, headed by Charles Hoskinson.
revealed Emurgo announced that the AgeUSD stablecoin will be available on Cardano once the latter launches its smart contract capabilities.
Does the crypto market really need another stablecoin?
The Emurgo project, through its new stablecoin, aims to prevent a repetition of the tragic events that occurred to “MakerDAO” that emerged through weaknesses in the digital stablecoin “Dai” escrow mechanism.
Read:The CoinX trading platform celebrates its fourth anniversary and announces a competition with valuable prizes
The mass liquidation of the vast majority of Maker’s coins resulted in the production of about $4 million DAI writing collateral at the time in March 2020.
Inspired by the “Staticoin” protocol, AgeUSD is designed to put on secured debts (CDPs).
The digital stablecoin “AgeUSD” is described as:
Thanks to the coin’s design, the MakerDAO Black Thursday scenario is not possible for the AgeUSD protocol.
Without CDPs, there are no filtering events and no requirement for users to perform transactions to ensure that filters are working properly.
The digital stablecoin “AgeUSD” runs on the “Ergo” blockchain.
Reserve providers pay the native “Ergo” blockchain coin “ERG” to mint the reserve coins that are the underlying security.
ERG can also be deposited in reserves for the “AgeUSD” mint, and this is only allowed by the protocol if there are sufficient reserves.
Banks use a similar method to lend money.
Partnership with Cardano:
The Cardano partnership will also enable ADA to be used as collateral for AgeUSD reserves.
However, the potential downside is that the stablecoin is backed only by these two assets (ADA and ERG), while the digital currency DAI is backed by several cryptocurrencies.
Read:“LG” launches a wallet for cryptocurrency…Details here
AgeUSD will be launched on Cardano when it rolls out the Alonzo update that will introduce smart contracts powered by Plutus.
Cardano reveals more details about the update of the smart contracts “Plutus”
This update is expected in the second half of this year, according to the roadmap.
Read also:
Bitcoin returns to the level of 62 thousand dollars and the total value of the market regains 100 billion dollars
ECB President: Users Want Privacy Protection But Don’t Want Anonymous CBDC
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time