Cardano co-founder Charles Hoskinson has proposed a bold plan to convert $100 million worth of ADA tokens from the project’s treasury into Bitcoin and stablecoins. Speaking during a recent YouTube livestream, Hoskinson suggested using a mix of Cardano-native stablecoins such as USDM and USDA, along with some Bitcoin, to boost liquidity and invigorate the Cardano decentralized finance (DeFi) ecosystem.
#1
His goal to increase stablecoin issuance and total value locked (TVL) ratio from 10% to 30-40%.
Explanation of how this move aims to strengthen Cardano’s DeFi ecosystem.
Charles Hoskinson Proposes $100M ADA Swap to Boost Cardano DeFi
Overview of Hoskinson’s proposal to convert $100 million ADA from the treasury into Bitcoin and Cardano-native stablecoins (USDM, USDA).His goal to increase stablecoin issuance and total value locked (TVL) ratio from 10% to 30-40%.
Explanation of how this move aims to strengthen Cardano’s DeFi ecosystem.
#2
Comparison with Solana’s much higher TVL and stablecoin supply.
Hoskinson’s view that the lack of stablecoins is “killing Cardano” and how the swap could generate “non-inflationary revenue.”
Why Stablecoins and Bitcoin Are Key to Cardano’s Growth, According to Hoskinson
Details on the current low stablecoin issuance on Cardano ($31 million) versus TVL ($356 million).Comparison with Solana’s much higher TVL and stablecoin supply.
Hoskinson’s view that the lack of stablecoins is “killing Cardano” and how the swap could generate “non-inflationary revenue.”
#3
Plans for governance, including a potential elected board to oversee the sovereign wealth fund.
Estimated allocation of 5-10% of Cardano’s $1.2 billion treasury to stablecoins and Bitcoin.
Managing the $100M ADA Treasury Conversion: Hoskinson’s Strategy
How the treasury conversion would be executed gradually over 30 to 90 days using TWAP and OTC trades to avoid price disruption.Plans for governance, including a potential elected board to oversee the sovereign wealth fund.
Estimated allocation of 5-10% of Cardano’s $1.2 billion treasury to stablecoins and Bitcoin.
#4
Discussion of differing views on how to measure and drive Cardano’s growth in DeFi.
Cardano Leadership Divided: Hoskinson vs. Gregaard on TVL and Adoption Metrics
Contrast between Hoskinson’s focus on TVL and stablecoin issuance and Cardano Foundation CEO Frederik Gregaard’s statement that TVL is not a key adoption metric.Discussion of differing views on how to measure and drive Cardano’s growth in DeFi.
#5
Hoskinson’s dismissal of concerns about price impact, citing market depth and trading volume.
Timeline for formal discussions and possible implementation by year-end.
This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.The writer wont take in any circumstances any legal dispute regarding this article since its a news and informational base article . No investment advice !
What Cardano Investors Need to Know About the Proposed ADA Swap
Summary of the potential impacts on ADA price and market dynamics.Hoskinson’s dismissal of concerns about price impact, citing market depth and trading volume.
Timeline for formal discussions and possible implementation by year-end.
This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.The writer wont take in any circumstances any legal dispute regarding this article since its a news and informational base article . No investment advice !
