Cardano’s $100M plan to tackle DeFi and stablecoin challenges
The post Cardano’s $100M plan to tackle DeFi and stablecoin challenges appeared on BitcoinEthereumNews.com. The Cardano ecosystem could soon undergo a strategic treasury shift to energize its DeFi and stablecoin sectors. On June 13, the network founder Charles Hoskinson suggested allocating around $100 million worth of ADA from the network’s treasury towards a mix of stablecoins and Bitcoin. According to him: “[W]e take about a hundred million worth of ADA in the treasury and convert it to a blend of a collection of stablecoins incumbent in Cardano, so USDM, USDA, as well as ADA-backed stable synthetics like iUSD and also convert some of it to Bitcoin to prime the Bitcoin DeFi.” Hoskinson emphasized that this move would address a key weakness within the Cardano ecosystem: the limited adoption of stablecoins, which has hampered its competitiveness in the DeFi space. He said: “What is killing Cardano is our stablecoin situation. This would start to solve it. Generate some non-inflationary revenue for the treasury, and help build up our DeFi economy.” However, Hoskinson noted that any such move would depend on evaluating the readiness of Cardano-based DeFi protocols and ensuring sustainable ecosystem yields. Hoskinson’s concerns are prescient considering Cardano trails far behind major players like Solana and Ethereum in DeFi and stablecoin activities. According to DeFiLlama data, the network ranks 46th in global stablecoin activity, with a market cap of roughly $31.3 million. At the same time, the total value of assets locked on the network for DeFi activity is less than $400 million, far below that of other rival networks, which run into billions. ADA sale impact Meanwhile, community concerns have surfaced that selling $100 million worth of ADA could negatively affect the token’s price. However, Hoskinson dismissed these fears, arguing that Cardano’s liquidity can easily handle such a transaction. He said: “The markets are deep. We could convert 140 million ADA over a week or…
The post Cardano’s $100M plan to tackle DeFi and stablecoin challenges appeared on BitcoinEthereumNews.com.
The Cardano ecosystem could soon undergo a strategic treasury shift to energize its DeFi and stablecoin sectors. On June 13, the network founder Charles Hoskinson suggested allocating around $100 million worth of ADA from the network’s treasury towards a mix of stablecoins and Bitcoin. According to him: “[W]e take about a hundred million worth of ADA in the treasury and convert it to a blend of a collection of stablecoins incumbent in Cardano, so USDM, USDA, as well as ADA-backed stable synthetics like iUSD and also convert some of it to Bitcoin to prime the Bitcoin DeFi.” Hoskinson emphasized that this move would address a key weakness within the Cardano ecosystem: the limited adoption of stablecoins, which has hampered its competitiveness in the DeFi space. He said: “What is killing Cardano is our stablecoin situation. This would start to solve it. Generate some non-inflationary revenue for the treasury, and help build up our DeFi economy.” However, Hoskinson noted that any such move would depend on evaluating the readiness of Cardano-based DeFi protocols and ensuring sustainable ecosystem yields. Hoskinson’s concerns are prescient considering Cardano trails far behind major players like Solana and Ethereum in DeFi and stablecoin activities. According to DeFiLlama data, the network ranks 46th in global stablecoin activity, with a market cap of roughly $31.3 million. At the same time, the total value of assets locked on the network for DeFi activity is less than $400 million, far below that of other rival networks, which run into billions. ADA sale impact Meanwhile, community concerns have surfaced that selling $100 million worth of ADA could negatively affect the token’s price. However, Hoskinson dismissed these fears, arguing that Cardano’s liquidity can easily handle such a transaction. He said: “The markets are deep. We could convert 140 million ADA over a week or…
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