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Charles Hoskinson Proposes $100M ADA Treasury Shift to Boost Cardano DeFi
- Charles Hoskinson proposes shifting $100 million worth of ADA to boost Cardano DeFi by increasing stablecoin liquidity and bringing Bitcoin into the ecosystem.
- Cardano's DeFi lacks sufficient stablecoin support, with only $33 million of stablecoins compared to a $330 million total value locked, falling behind Ethereum and Solana in this aspect.
- Hoskinson suggests reallocating 5–10% of the $1.2 billion Cardano treasury to native stablecoins and Bitcoin to kickstart Bitcoin-based DeFi on Cardano.
- The aim is to create a sovereign wealth fund structure to generate yield that will be reinvested in ADA, potentially improving liquidity and advancing stablecoin adoption on Cardano.
- Hoskinson believes the $100 million shift will not negatively impact ADA's price due to the cryptocurrency's strong and liquid market.
- Cardano is actively working on governance mechanisms, with plans to present the treasury fund proposal at the Rare Evo Conference in August.
- The ultimate goal is for Cardano's treasury to hold ADA, Bitcoin, stablecoins, and native tokens from partner chains, fostering cross-chain growth and partnerships.
- Successful execution of the strategy could significantly enhance Cardano's DeFi ecosystem by increasing stablecoin liquidity and attracting more outside capital.
- The initiative may position Cardano as a competitive player in the global DeFi arena.
- Hoskinson envisions stablecoin liquidity rising to 33–40% of total value locked and the treasury expanding to over $1 billion through this proposed shift.
- The plan includes preparing a detailed proposal by the Rare Evo Conference after gathering feedback from Cardano's DeFi projects.
- The strategy could pave the way for transformative growth in Cardano's DeFi ecosystem, potentially revolutionizing the platform's financial dynamics.
- Cardano's ambitions extend towards creating a multi-asset digital nation through cross-chain partnerships and integration with tokens from other blockchains.
- The initiative aligns with Cardano's vision of establishing a strong foothold in the decentralized finance space.
- Hoskinson's proposal signals a strategic shift towards enhancing Cardano's financial infrastructure and competitive positioning in the crypto market.
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