#CardanoDebate is heating up after a bold proposal surfaced: use 140M ADA from the treasury to accelerate DeFi growth by purchasing BTC and Cardano native stablecoins (USDM, USDA, IUSD). The community reaction has been swift, with ADA dropping 6% following the announcement, highlighting the market’s uncertainty.

Supporters argue this move could strategically diversify Cardano’s treasury, reducing its dependence on ADA’s price volatility and injecting stability via Bitcoin and stablecoins. By backing DeFi protocols with stronger liquidity and diversified assets, the ecosystem might attract more developers, users, and institutional interest — positioning Cardano as a more resilient Layer 1 platform.

However, critics raise valid concerns. Allocating a large portion of treasury funds in this way carries risks amid current market uncertainties. Questions around governance transparency, execution strategy, and long-term security of these assets remain open. Mismanagement or unforeseen market shocks could lead to significant losses, ultimately weakening community trust.

In the long term, if managed prudently, this move has the potential to strengthen ADA’s fundamentals by supporting real DeFi utility, which may positively impact its valuation. But if governance issues persist, it could backfire. The outcome largely depends on transparent execution, market timing, and active community oversight.