Cardano founder Charles Hoskinson has outlined a proposal to convert $100 million worth of ADA into Bitcoin and Cardano-native stablecoins. The initiative aims to significantly enhance the platform’s decentralized finance ecosystem and increase its stablecoin dominance.
Hoskinson’s plan focuses on utilizing ADA assets to acquire Bitcoin (BTC) alongside Cardano-based stablecoins USDM and USDA. This strategy is designed to address the current lag in Cardano’s DeFi sector.
Currently, Cardano’s stablecoin-to-Total Value Locked (TVL) ratio sits at 10%. This is substantially lower than competitors like Solana, which reportedly holds $11 billion in stablecoins against $9.8 billion in TVL. Hoskinson targets increasing Cardano’s stablecoin-to-TVL ratio to between 30% and 40%.
The founder believes this conversion will boost liquidity within Cardano’s DeFi applications, enhance user confidence, and attract more DeFi projects to the network. He also emphasized plans to integrate Bitcoin’s liquidity into the Cardano ecosystem.
Hoskinson reassured stakeholders the conversion would be executed cautiously to prevent disruptive volatility. He dismissed potential concerns about the large token conversion causing downward pressure on ADA’s price.