The $ADA 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 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 improve the liquidity of stablecoins in the Cardano network, facilitating transactions, market making, and other activities within the ecosystem, increasing the total locked value (TVL) of 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 reduce the circulating supply of ADA, expand the treasury size, and provide ongoing support for the ecosystem, forming a virtuous cycle of capital.