Cardano, a proof-of-stake blockchain platform has made a new announcement in regard to coming up with a new product.
The teams at Cardano have confirmed that they have recently partnered with a Layer 1 protocol that is based on DAG, COTI.
The goal behind the partnership between Cardano and COTI is to be able to launch a new stablecoin. As per the officials, the stablecoin will be over-collateralized and it will be algorithmic in nature.
Cardano Working on a Stablecoin
As per the Cardano officials, the users will not have to worry about the collateralization of the stablecoin. It will have an access amount of collateral. These will be stored in the form of cryptocurrency.
They may choose a single cryptocurrency asset or multiple cryptocurrencies as collateral and keep them in the reserve.
Expected Mainnet Launch
The developers have announced that they are currently working on the Cardano stablecoin. They are aiming to launch it in the first quarter of 2023. However, their main goal is to do it in January 2023.
With the start of a new year, Cardano does not want to lose the opportunity of gauging the potential of their stablecoin. Therefore, they want to start with it right from the beginning of 2023.
For now, all of the audits and the rigorous stress tests are pending. However, their aim is to start them as soon as possible so they can be tested throughout the month of December.
If all goes as per the plan, then they will be able to launch the new stablecoin into the system by January 2023.
Once launched, the Cardano stablecoin will be pegged with the USD. The token will be circulated through the Cardano blockchain.
As for now, they have decided that the $SHEN token will be acting as the stablecoin’s collateral and it will be placed in the reserve.
Integration with other Platforms
As per the teams, the stablecoin will be integrated and distributed among decentralized exchanges (DEXs) and selected partners.
These stablecoins would be available on these protocols for the users who are responsible for providing liquidity to the system.
Over the course of time, Cardano has plans to provide liquidity options to the Djed smart contract. The liquidity will be provided via $ADA, and the expansion of services would be gradual.
Cardano is determined to grow
Despite the declining performance of Cardano’s native token ADA, Cardano is showing no signs of concern or having lost confidence.
They are confident in their capabilities and will continue to expand their business to bring more adoption to their protocols.
With the launch of a stablecoin, Cardano will be able to complete its ecosystem and it would become a place for millions of users to use and take advantage of.
This will eventually increase the market price of ADA, which is currently trading at a low of $0.30.