#CardanoDebate Cardano founder Charles Hoskinson's proposal to use $100 million worth of ADA from the treasury to boost DeFi growth has sparked mixed reactions. The plan involves converting 140 million ADA into Bitcoin and Cardano-native stablecoins like USDM, USDA, and IUSD to increase liquidity and stimulate the ecosystem. Hoskinson believes this move will help Cardano's DeFi sector become more competitive, citing the current low stablecoin-to-TVL ratio of 10% as detrimental to growth. Potential benefits include:

- *Increased Liquidity*: Boosting stablecoin liquidity to 33-40% of TVL

- *Cross-Chain Growth*: Diversifying the treasury with multi-assets to support cross-chain growth

- *DeFi Competitiveness*: Positioning Cardano as a strong player in the DeFi space

However, concerns about market conditions and governance remain. The proposal's success depends on effective execution and community support.¹ ²