The initiative aims to breathe new life into the network’s DeFi sector and significantly raise its stablecoin-to-TVL ratio.
Speaking to the community, Hoskinson stressed the urgent need for action, saying, “We can take the $100 million worth of ADA in the treasury, convert it into a mix of stablecoins on Cardano—namely USDM and USDA—and convert some of it into Bitcoin, which makes it Prime Bitcoin DeFi.”
Hoskinson’s goal is to increase Cardano’s stablecoin-to-TVL ratio from the current 10% to between 30% and 40%, calling the current levels detrimental to Cardano’s growth. “The 10% ratio is killing Cardano,” he added.
According to DeFiLlama, Cardano’s total value locked (TVL) stands at $356 million, with only $31 million in stablecoins minted on-chain. In contrast, Solana boasts a TVL of $9.8 billion and $11 billion in minted stablecoins, highlighting Cardano’s underperformance in this key area of DeFi adoption.
Critics have voiced concerns that offloading $100 million worth of ADA could pressure the token’s price. However, Hoskinson dismissed such fears as unfounded, arguing that the treasury’s conversion plan would be managed responsibly and not trigger significant market disruptions. He also fired back at skeptics, labeling them inexperienced and unqualified to assess the strategy’s feasibility.
If approved, the conversion could signal a major strategic shift for Cardano, positioning the network to better compete in the evolving DeFi and stablecoin sectors.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/hoskinson-proposes-100m-ada-conversion-to-boost-cardano-defi-and-stablecoin-ecosystem/