So, there are rumours of this possibly happening—which TBH, would make sense due to Litecoin’s cheap fees.
How would this help the Litecoin network grow/improve though? What advantages does it bring to Litecoin itself?
I don’t believe a stable coin on Litecoin will help Litecoin. The most amount of Tether now runs on the Tron network which has zero fees. Instead of a stable coin on Litecoin, I would push more for getting wrapped Litecoin (wLTC) since wLTC can then be used in DeFi protocols. And those DeFi protocols will really drive growth for Litecoin.