In a recent YouTube video, Charles Hoskinson shared a major update on the financial management of Cardano. He proposed to use a value of $ 100 million from ADA to strengthen the liquidity of the stables and bring bitcoin to the Cardano Defi ecosystem.
Liquidity with low attempts of stables retains cardano
He started by stressing that Cardano does not have enough stablecoin liquidity. There are only about 33 million dollars in stablescoins taking care of more than $ 330 million of total locked value (TVL). In comparison, Ethereum and Solana have much more stablecoin support, and Cardano is late.
“We have a treasure with around 1.5 billion dollars of ADA, and yet there are only about 30 million dollars in stablecoins throughout the cardano ecosystem,” he said. “It’s a problem.”
Hoskinson offers a fatty movement
To solve this problem, Hoskinson offers a daring decision: take 5 to 10% of the Treasury of $ 1.2 billion and convert it to a mixture of native stables like USDA, USDM, IUSD and even a little bitcoin to help start DEFI based on Bitcoin on Cardano.
The objective here is to generate a yield from these assets as a sovereign fund (such as Norway or Abu Dhabi) and to reinvest the profits in ADA. This decision could stimulate yields, improve liquidity and accelerate the adoption of Cardano stall. It can also help the native stablecoins to register on more exchanges and position Cardano as a solid player in the DEFI space.
Will it hurt Ada?
Hoskinson estimates that the move of $ 100 million will not harm ADA. “Hundreds of millions of Dollars from Ada change hands daily without visibly affecting the price of cryptocurrency,” he said. He says that the market is solid and liquid enough to manage it, especially if it is done gradually using average weighted price algorithms in time and over -the -counter trades.
Current governance
Cardano always seeks to manage governance. Charles wants the Treasury Fund plan to be ready for the discussion during the rare EVO conference in August.
He has already written a 40 -page document describing the idea and shared it with internal teams. In addition, the team will collect comments from Cardano’s DEFI projects and prepare a complete proposal, perhaps by the conference.
Cardano aims for transversal growth and the $ 1 billion treasure
Hoskinson says that the Cardano Treasury will eventually become multi-active. While more and more channels are connected to Cardano, their costs could also flow into the treasure, building a large diverse portfolio to support cross growth.
If the strategy works, it could change the game for Cardano. The liquidity of the stablescoin could reach 33 to 40% of the TVL, which makes the ecosystem much healthier. The treasure could reach more than a billion dollars in stablecoins and bitcoin. The Cardano Defi could become much more competitive on the world scene.
