dori
dori
ADA-5.41%
1/ Incredible to see @IOHK_Charles tackling Cardano's stablecoin liquidity—an issue from my recent thread. Not claiming credit for it, but I'm truly grateful for this move. So, what changes for Cardano if this 100M USDM is injected?🧵
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Angry Crypto Show
Angry Crypto Show
JUST IN: #Cardano $ADA Founder Charles Hoskinson says "there's 1.7B ADA in the treasury. We could convert $100M in ADA to $USDM, to build up trading, market making, and TVL in Cardano—get 5-10% returns on it, purchase ADA every year with it, and donate it back to the treasury."
@IOHK_Charles 2/ The core problem was clear. Cardano's 'Stablecoin Market Cap / DeFi TVL' ratio was a mere 10.7%. This indicated a state of extreme liquidity drought compared to other chains where the ratio is well over 100%, effectively hamstringing DeFi growth.
3/ According to Charles's proposal, if $100M worth of ADA (approx. 143M ADA at current prices) from the treasury is supplied as $USDM liquidity, the entire landscape changes. Here's the data: $USDM's Market Cap: $11.56M ➡️ $111.56M (A ~9.6x increase, becoming the undisputed #1) Total Stablecoin MC: $32.43M ➡️ $132.43M (A 4x increase) Stablecoin/TVL Ratio: 10.7% ➡️ ~44.7% (A 4x increase)
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