A market analyst identifies the potential impact on Cardano amid ongoing discussions about the possibility of integrating #RLUSD into Cardano.
In a related context, Charles Hoskinson, the founder of #كاردانو , previously confirmed that discussions are ongoing between his team and RLUSD developers regarding the possibility of bringing the stablecoin to the Cardano blockchain.
During a live broadcast on May 24, Charles Hoskinson, the founder of Cardano $ADA , answered inquiries regarding the potential launch of RLUSD on the Cardano blockchain by the end of the year.
He explained that his team has already reached out to RLUSD developers and held an initial meeting.
Analyst notes potential market impacts
Amid the ongoing discussions, a trader known as Merlijn The Trader shared his views on X yesterday, pointing to potential market shifts if the integration process moves forward.👇
A massive offer from the founder of Cardano:
Integrating RLUSD into the $ADA DeFi ecosystem for free.
This opens the door for:
- New limited partners
- Additional yield
- Cross decentralized finance funding
If this is implemented...
Limited partner flow. Sharp increase in market value. Decentralized finance is in operation🖐
Speaking on X, Merlin highlighted three main benefits that could be realized if RLUSD joins the Cardano ecosystem. First, Merlin noted that RLUSD's joining could attract a new wave of liquidity providers, enhancing market depth and trading volume on Cardano platforms.
Stablecoins are typically key assets in decentralized finance protocols, and the presence of RLUSD could improve liquidity across decentralized trading platforms.
Integration will enhance yield farming
According to him, integrating the stablecoin is likely to enhance yield farming opportunities. With pools supported by RLUSD, storage and lending options, Cardano users can benefit from more diverse and potentially higher-yield mechanisms.
Moreover, integrating RLUSD may open new horizons for cross-chain decentralized finance strategies, especially if implemented through a routing protocol like Layer Zero. This will enable Cardano users to interact with protocols and assets from other chains without leaving the Cardano ecosystem, paving the way for interoperable decentralized finance solutions that enhance capital efficiency.
According to Merlin, successful implementation may lead to a significant increase in Total Value Locked (TVL) on Cardano $ADA
, enhancing the general decentralized finance activity within its ecosystem. It is noted that DeFiLlama data shows that Cardano currently boasts a Total Value Locked (TVL) of $244.44 million, while the market value of the stablecoin is only $31.36 million.
Cardano TVL | DeFiLlama
A stablecoin on Cardano #ADA ?
It was noted that in May, Hoskinson announced plans to launch a privacy-focused stablecoin on the network, addressing concerns about the transparency of current stablecoins, which publicly record all transactions on the blockchain.
He argued that many users might prefer greater privacy when making purchases and proposed the concept of 'selective disclosure and seasonal freeze' to support this vision.