During the current cryptocurrency environment, stablecoin developers are trying to come up with better solutions to ensure the stability of their projects. USDC, the second-largest stablecoin token in the cryptocurrency space by market cap and ERC-20 coins, supported by IAG, are opting for the same solution.
Ethereum network and Cardano network are going to be connected with the help of a new cross-blockchain bridge.
The bridge is named Iagon, and it is facilitated by the Milkomeda sidechain project. With this new option, the liquidity pools for the said stablecoin projects are going to increase by many folds. In case of a sharp decline or crash, the investors who are holding the tokens will be able to find exchange orders to cut their losses much more rapidly. In this manner, the side-chain project can work as a risk mitigation option.
The Bridge will Support USDC Transfers
With the cross-chain bridge between Cardano and Ethereum network going up, the investors on both sides will be able to have more feasible access. The addition of USDC stablecoin in the Cardano ecosystem will make its decentralization position stronger. There is already a $119 million TVL or Total Value Locked in the Cardano network since it added the Alonzo hardfork last year.
On the other hand, there is also some news for the investors who are waiting for the algorithmic stablecoin set to be issued on the Cardano network called Djed. The investors on the Cardano network are hoping that the facility of a cross-bridge blockchain network will allow them to see the native stablecoin project much sooner than anticipated.
The latest statement issued by the Iagon developers suggests that the project has plans to integrate more stablecoin projects in the future. The highly likely candidates to get the first inclusions are ERC-20 tokens that can also travel on the cross-chain bridge in the upcoming days. The timing of the parachain project is also considered crucial due to several important reasons.
One of these reasons is that the Cardano network developers are currently working to introduce the next phase of the upgrade on the network called the Vasil hardfork.
As per the Cardano network developers, the testnet for the Vasil upgrade is set to go live on the network sometime in July. Following the news of the parachain, Cardano native token gained 5% while Ethereum native token was appreciated by 2% since last night.