The Cardano ecosystem is taking a major step toward capturing a share of the stablecoin market’s growth. The Cardano DAO has put a new proposal to the vote, aiming to inject $41 million in on-chain liquidity.
The proposal calls for the creation of a dedicated fund containing 50 million ADA coins (currently valued at $41 million) and fiat-backed stablecoins. 90% of this fund is intended to be allocated to decentralized exchanges (DEXs) and lending protocols, thereby increasing liquidity in Cardano’s DeFi market.
“There is a need for stronger liquidity in the Cardano ecosystem, particularly stablecoin liquidity. The Cardano community benefits holistically from deep stablecoin liquidity,” the proposal reads.
Stablecoin investments entered a significant upward trend in 2025. According to Coinbase’s estimates, the stablecoin market could surpass $1 trillion by 2028.
Cardano’s DeFi volume currently stands at $353 million, well behind giants like Ethereum and Solana. Cardano founder Charles Hoskinson has also complained in the past that the ecosystem isn’t growing fast enough and stablecoin integrations are slow.
It’s proposed that 15 percent of the revenue generated under the plan be converted back into ADA and collected in the treasury. However, the proposal also carries some risks.
The fund will require the sale of $27 million worth of ADA to mint a stablecoin. However, bidders state that these sales will not be made on the open market, but rather through over-the-counter (OTC) agreements with institutional investors.
It is also argued that the $27 million sale is lower than ADA’s daily trading volume, so it will not put serious pressure on the price.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/voting-that-could-affect-cardanos-ada-fate-has-begun-is-there-a-risk-of-a-sell-off-here-are-the-details/
