Charles Hoskinson Proposes Strategic Investment to Boost Cardano DeFi
Charles Hoskinson, co-founder of Cardano, has put forth a bold proposal to revitalize and expand the platform's decentralized finance (DeFi) ecosystem. The key initiative involves converting $100 million in ADA, Cardano's native cryptocurrency, from the project's treasury. These funds would be used to acquire a mix of stablecoins (such as USDM and USDA) and Bitcoin. The central purpose of this strategy is to strengthen stablecoin liquidity on Cardano and, simultaneously, facilitate their integration into the growing Bitcoin DeFi space.
Hoskinson has addressed criticisms and concerns about a potential negative impact on the price of ADA due to such a large sale. Dismissing these fears, he called critics "inexperienced" and confidently stated that the transaction "wouldn't cause any problems at all."
The main objective of this sale, Hoskinson explained, is to increase the proportion of stablecoin issuance and the Total Value Locked (TVL) on Cardano, raising it from the current 10% to a range of 30% to 40%. Currently, Cardano's TVL amounts to $356 million, with only $31 million in stablecoins minted on-chain. To put this into perspective, Hoskinson compared the situation to Solana, which manages a TVL of $9.8 billion and has $11 billion in stablecoins minted on its chain.
In a recent tweet, Hoskinson emphasized that the "current stablecoin situation is killing Cardano." He firmly believes that this proposal would not only generate "non-inflationary revenue" for the project but also be a fundamental step to robustly build and expand Cardano's DeFi economy.
#DeFi: #Cardano #CardanoSurge #EarnMoney