The Cardano Stablecoin Proposal refers to the proposal by Cardano founder Charles Hoskinson to convert $100 million worth of ADA in the treasury into the Cardano-native supported stablecoin USDM. This proposal has multiple significances:

Enhancing ecosystem liquidity: Stablecoins are an important foundation for the development of DeFi. The proposal aims to enhance the liquidity of stablecoins within the Cardano network, which helps facilitate trading, market-making, and other activities within the ecosystem, increasing the total value locked (TVL) in the network and promoting the development of decentralized financial services.

Creating economic returns and capital circulation: This proposal includes a self-sustaining economic model, expected to achieve an annualized return of 5%-10%. The returns will be used to purchase ADA from the open market and return it to the treasury, which helps to reduce the circulating supply of ADA, expand the treasury size, provide ongoing support for the ecosystem, and create a virtuous cycle of capital.