The Cardano ecosystem could soon undergo a strategic treasury shift to reinforce its Defi and Stablecoin sectors.
On June 13, the founder of the Charles Hoskinson network proposed to alle $ 100 million to ADA from the treasury of the network to a mix of Stablecoins and Bitcoin.
According to him:
‘[W]he takes about one hundred million in Ada in the treasury and convert it to a mix of a collection of stablecoins-featured in Cardano, ie USDM, USDA, as well as stable synthetica supported by ADA such as IUSD and also convert part of Bitcoin to prime the Bitcoin Defi. “
Hoskinson emphasized that this step would tackle an important weakness within the Cardano ecosystem: the limited acceptance of Stablecoins, which has hindered its competitiveness in the Defi space.
He said:
“What Cardano kills is our Stablecoin situation. This would start to solve it. Generate some non-inflectional income for the treasury and help build our Defi-economy.”
Hoskinson, however, noted that such a movement would depend on the evaluation of the willingness of Cardano-based Defi protocols and guaranteeing sustainable ecosystem yields.
The worries of Hoskinson are ahead of Cardano paths far behind major players such as Solana and Ethereum in Defi and Stablecoin activities.
According to Defillama factsThe network is in 46th place in the global Stablecoin activity, with a market capitalization of around $ 31.3 million. At the same time, the total value of assets that are locked on the network for Defi activity is less than $ 400 million, far below that of other rival networks that become billions.
Ada Sale Impact
In the meantime, the concerns of the community have surfaced that selling $ 100 million to ADA can negatively influence the price of the token.
Hoskinson rejected These fears, with the argument that the liquidity of Cardano can easily process such a transaction.
He said:
“The markets are deep. We can convert 140 million ADA in a week or so without moving the market using OTCs and Twaps. It is a false story.”
Hoskinson also noted that the sale would exercise minimum price pressure if it is carried out correctly, with the argument that the perception of a large sale can cause more volatility than the sale itself.
He added:
“The markets are deep. Billions of Dollars of ADA -Handelshand every week all over the world. The conviction that Cardano Defi is only Bullish would create sufficient purchase demand to compensate for a liquidation on this scale. If 100 million could move the market, Cardano Extreme Volatility would have.”
