A Key Step for Ecological Development?

Recently, the Cardano community has been actively discussing the proposal to introduce native stablecoins, a move that could further promote the prosperity of the $ADA ecosystem. Stablecoins play a core role in DeFi, payments, and cross-chain transactions, while Cardano currently relies on bridged assets (such as USDT and USDC). If a stablecoin backed by over-collateralized $ADA or algorithmically supported is successfully launched, it would significantly enhance capital efficiency and attract more users.

However, challenges cannot be overlooked—ensuring stability, decentralization, and regulatory compliance is crucial. The previous collapse of Terra UST warned about the risks of algorithmic stablecoins, so Cardano needs to design a more robust mechanism. If the proposal is approved, which model do you think is more suitable for Cardano? Collateralized or algorithmic?

#Cardano #Stablecoin #DeFi