The Cardano stablecoin proposal refers to Charles Hoskinson, the founder of Cardano, proposing to convert $100 million worth of ADA in the treasury into the Cardano natively 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 increase the liquidity of stablecoins within the Cardano network, helping to 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 annual return of 5%-10%. The returns will be used to purchase ADA from the open market and return it to the treasury, helping to reduce the circulating supply of ADA, expand the treasury size, and provide continuous support for the ecosystem, forming a positive cycle of capital.