Cardano is preparing for a coin-to-coin exchange! The founder proposed to use $100 million ADA to exchange for Bitcoin and stablecoin, improving the blood shortage problem in Decentralized Finance.

Hoskinson, the founder of the public blockchain Cardano, proposed to use about $100 million ADA to exchange Bitcoin and stablecoins to inject liquidity into DeFi, causing heated discussions in the community. (Synopsis: ADA founder opens Ethereum's "three major shortcomings": Vitalik admits that Cardano is better, ETH may disappear in a decade) (Background supplement: Cardano founder: Bitcoin DeFi dominates decentralized finance in three years, ADA rises 190% in a single month) Public chain Cardano founder Charles Hoskinson livestreamed his proposal on June 13 to exchange about $100 million of ADA in the treasury into stablecoins and Bitcoin. In this way, it quickly amplifies on-chain liquidity and improves the problem of DeFi ischemia. If the proposal is passed, Cardano will become the first public chain to dispatch native tokens with the idea of "sovereign funds". Allocation of funds and goals Hoskinson recommends exchanging seven to eight percent of ADA into stablecoins such as USDM, USDA, and iUSD, and the remaining two to thirty percent to buy bitcoin. He stressed that Cardano's existing liquidity is enough to absorb a sell-off of about $100 million and will not have a significant impact on the ADA price, and bluntly said that "the lack of stablecoins is killing Cardano." Hoskinson plans to set up a pool of funds overseen by the governance committee and audited on-chain, creating a decentralized version of the "Norway, Abu Dhabi" sovereign fund. However, according to DefiLlama data, Cardano TVL will only be $356 million in mid-2025, the market value of on-chain stablecoins will be $31 million, and stablecoins account for about 10% of the TVL ratio. That's compared to about 110 percent for Solana and 190 percent for Ethereum, a gap that highlights Cardano's difficulty attracting funding and developers. Community Divergence and Governance Design However, it is worth mentioning that Frederik Gregaard, CEO of the Cardano Foundation, has publicly stated that "TVL is not a key indicator of ecological success", which is at odds with Hoskinson's urgency to improve TVL, raising doubts about the unity of strategy. Critics worry that a large ADA sell-off could still drag down the price of the currency, and that centralized decision-making would go against the spirit of decentralization. Proponents argue that boosting stablecoins and liquidity, and then reinvesting the proceeds, can create a sustainable capital cycle. Potential impact and unknowns If the proposal lands, ADA may be under psychological pressure in the short term, but on-chain stablecoin supply and DeFi activity are expected to rise rapidly, paving the way for the next market cycle. In the face of fierce competition from mainstream public chains, it remains to be verified whether Cardano can complete the DeFi puzzle with this high-risk and high-reward experiment. Related reports Nasdaq Applies to SEC: XRP, SOL, XLM, ADA into Crypto Index Adam Back Anti-Quantum Computer "Cracks Bitcoin": Recommends Integrating Taproot AI with SLH-DSA XRP vs. ADA: Which cryptocurrency may perform unexpectedly in 2025? 〈Cardano is ready to exchange coins! The founder's proposal to exchange $100 million ADA for Bitcoin and stablecoins to improve the DeFi ischemia problem This article was first published in BlockTempo's "The Most Influential Blockchain News Media".