From Hydra Halt to Stablecoin
Cardano introduced the first 1:1 fully fiat-backed stablecoin, USDM. This new entrant aims to secure a foothold in the highly competitive $146 billion stablecoin market, which is mainly led by the giants Tether and Circle.
The launch is an important moment for Cardano, especially following the delays and challenges in delivering its much-anticipated Layer 2 solution, Hydra.
Cardano New Stablecoin Despite Hydra Delay
Mehen Finance, the architect behind the USDM, originally planned for early 2023. However, the roadmap has faced major setbacks following the unexpected closure of crypto-friendly banks. This chaos in the banking sector and the loss of a banking partner, Cross River to Circle, has caused unexpected delays in USDM operations.
Mehen's founding partner, Matthew Plomin, openly discussed the difficult journey. He highlighted the key moments that shaped their strategy. Specifically, Plomin talked about the banking crisis and his move to Plaid to produce and burn US dollars for the USDM.
Read more: Guide to the Best Stablecoins in 2024
The introduction of a stablecoin gives Cardano users a new option. It differentiates itself from other Cardano-based stablecoins, such as DJED and iUSD, based on algorithms and integrated models. Decentralized finance (DeFi) on the blockchain represents a major milestone. Enthusiasts like Jaromir Tesar recognize the potential to elevate the ecosystem.
“Cardano has the first USD-backed stablecoin, Mehen USDM. This is a big milestone for DeFi on Cardano,” Tesar said.
This strategic move by Cardano to adopt USDM demonstrates a robust and adaptive approach in the ongoing development of Hydra. Cardano co-founder Charles Hoskinson dismissed rumors of Hydra leaving, stressing the community's commitment to increasing blockchain efficiency and effectiveness.
“I've been seeing some videos that say Hydra has left. It's just pure FUD. The group has never been more productive and motivated, with great community engagement and new papers on the way to improve the protocol,” explained Hoskinson.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
This briefing will reassure stakeholders of Cardano's roadmap for achieving a more scalable, secure, decentralized financial ecosystem.
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