Summary
- Charles Hoskinson, the founder of Cardano, proposed converting 100 million Cardano (ADA) to USDM to enhance liquidity.
- Hoskinson stated that this measure could activate decentralized finance (DeFi), increase total value locked (TVL), and generate annual returns of 5~10%.
- He emphasized that the profits could be utilized for ADA buybacks and to reorganize the treasury.
Cardano founder Charles Hoskinson has proposed a plan to convert 100 million Cardano (ADA) into the stablecoin USDM to expand asset liquidity.
According to cryptocurrency-focused media outlet Cryptopolitan on the 13th (local time), Hoskinson recently suggested in a community call that "out of the 1.7 billion ADA in the Cardano Treasury, 100 million ADA should be used to boost USDM liquidity." He argued, "These funds can be used to build trading and market-making infrastructure, enhance decentralized finance (DeFi), and increase total value locked (TVL)."
Hoskinson explained that the plan could generate an annual return of 5~10%, and that this return could be used for ADA buybacks to restructure the treasury, creating a virtuous cycle.
He emphasized, "Rather than simply holding onto funds, we need strategic investments to expand the ecosystem."
Meanwhile, USDM is Cardano's native stablecoin, pegged 1:1 with the US dollar and fully collateralized on-chain.
Hoskinson stressed, "By increasing the base liquidity for USDM, as done in the Ethereum or Solana ecosystems, Cardano DeFi can also take off."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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