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EMURGO, Ergo, and IOHK announce AgeUSD, the first stablecoin that will come to Cardano

EMURGO, Ergo, and IOHK announce AgeUSD, the first stablecoin that will come to Cardano

The Ergo Foundation, EMURGO, and IOHK have announced AgeUSD, a stablecoin protocol based on the Ergo blockchain. According to Roman Pellerin, the CTO of IOHK, the crypto-backed algorithmic stablecoin will also be available on Cardano once its smart contract functionality is unlocked.
A new type of stablecoin to launch on the Ergo blockchain
EMURGO, a multinational blockchain company tasked with developing solutions for the Cardano blockchain, has announced the launch of a new stablecoin called AgeUSD. The stablecoin, however, won’t be launched on Cardano, but on Ergo, a decentralized blockchain platform.

Announced during the “Ergo Summit 2021” on Jan. 24, the stablecoin will be based on a novel algorithmic design developed on the Ergo blockchain. AgeUSD is a result of a joint partnership between the Ergo Foundation, EMURGO, and IOHK, the company behind the Cardano blockchain platform.

What makes AgeUSD different from other stablecoins on the market is the fact that it’s not a fiat-pegged token, but a crypto-backed algorithmic stablecoin protocol. This means that AgeUSD doesn’t rely on collateralized debt positions (CDPs), essentially making liquidation events impossible.

The protocol will see a significant portion of its mathematics as automated as possible and stop relying on dynamic transaction posing.

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Abhishek Upadhyay

Abhishek Upadhyay

A B2B Content Writer with hands-on experience in various niches. Skilled in writing blog content, website content, SEO content & various marketing collaterals.