#CardanoDebate This initiative seeks to improve decentralized finance (DeFi) activity on the platform, as it currently has a low ratio between the capitalization of stablecoins and the total value locked (TVL) in DeFi, reaching only 9.65% compared to other blockchains like Ethereum and Solana.
📌*Hoskinson's proposal*
- Convert 140 million ADA into USDM stablecoins to increase liquidity on the Cardano network
- Use funds from the network's Treasury to carry out the conversion
- Objective: to boost DeFi development on Cardano and generate non-inflationary income for the Treasury
📌*Reactions and debates*
- Some community members warn about potential selling pressure and suggest minting stablecoins backed by cryptocurrencies instead
- Hoskinson believes that the market has enough depth to absorb the conversion without significant adverse impacts
☑️It is important to highlight that Hoskinson is also working on the development of private stablecoins for Cardano, which could position the network as a pioneer in this segment and attract users who value privacy without sacrificing legal compliance.