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HomeCrypto NewsMarketCardano Foundation to Provide Eight-Figure ADA to Boost Stablecoin DeFi Liquidity

Cardano Foundation to Provide Eight-Figure ADA to Boost Stablecoin DeFi Liquidity

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The Cardano Foundation has unveiled the next phase of its roadmap to boost the mainstream adoption of the Cardano (ADA) ecosystem.

The Foundation shared in a Tuesday tweet that its next focus would be on a variety of new initiatives that could enhance the appeal of Cardano. One of the standouts in the new roadmap is providing eight-figure ADA to boost stablecoin liquidity within the ecosystem.

Cardano Now Targets Its Underperforming Stablecoin Market

The stablecoin scene is one of the sectors drawing all the attention to cryptocurrencies. Institutional interest and regulatory clarity have significantly benefited the fiat-pegged industry, boosting its valuation to $307 billion at press time, per CoinMarketCap.

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However, the Cardano ecosystem has not found much joy in its stablecoin market. According to DeFilLlama, the total Cardano stablecoin market cap stands at $38.9 million, which is relatively small compared to its counterparts, such as Ethereum, Solana, and BNB Chain.

The underwhelming stablecoin market has also contributed to Cardano’s poor DeFi market. Currently at $324.82 million, it ranks among the lowest among its peers. Notably, lower-ranking chains, such as Sui, Polygon, and Avalanche, boast more DeFi activities than Cardano.

As a result, the Cardano Foundation has set out to boost the network’s stablecoin liquidity, aiming to attract more DeFi activities. It pledged to commit eight figures in ADA to support Cardano native stablecoin projects.

The Foundation will also back DeFi adoption with the Stablecoin DeFi Liquidity Budget, a governance action currently in the pools. For the uninitiated, the proposal seeks to allocate 50,000,000 ADA ($40.65 million) from the treasury to increase stablecoin liquidity on Cardano.

RWA and DRep Boost for Cardano

Meanwhile, the new roadmap also focuses on backing the Web3 adoption team, with its primary focus on real-world asset (RWA) tokenization. The Foundation will commit over $10 million to RWA launches on the ecosystem to drive greater retail and institutional adoption through collaboration with MembersCap.

The Cardano Foundation will earmark an additional 220 million ADA to establish new delegated representatives (DReps) in the “Adoption and Operations” categories. It will also reduce self-delegation to 80M ADA to minimize its impact on decision-making within the network.

Additionally, the Cardano Foundation will delegate up to 2 million ADA to the Venture Hub by 2026, also to boost Cardano adoption. These approaches signal a shift in focus by the Foundation to enhance Cardano’s reach, especially in emerging narratives in the blockchain space.

Remarkably, Cardano founder Charles Hoskinson lauded the new initiative, noting it is a “good start.” He further encouraged the establishment of a community-elected board, calling it the last mile to reconciliation. Recall that Hoskinson had earlier called for these reforms, blaming the Cardano Foundation for the network’s backwardness.

For context, Hoskinson earlier disclosed ongoing negotiations to bring World Liberty Financial’s USD1 to the network. He also proposed using $100 million in ADA from the treasury to purchase native stablecoins, aiming to boost DeFi on the Cardano network.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Elendu Benedict
Elendu Benedict
Elendu Benedict is a refined cryptocurrency writer with over two years of experience in the field. With a thorough understanding of blockchain technology, cryptocurrencies, and market trends, as well as proficiency with ETFs, DeFi, and Web3, he specializes in writing engaging and educational articles on a variety of crypto-related subjects.

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