Charles Hoskinson proposes converting $100 million worth of ADA into stablecoins

Charles Hoskinson, Cardano founder, proposes to convert $100 million worth of ADA tokens into stablecoins and Bitcoin to activate the decentralized finance (DeFi) ecosystem.

According to DefiLlama, the Cardano network has about $31 million worth of stablecoins, compared to $273 million blocked in the DeFi protocols. In addition, Hoskinson says there are no yield-bearing instruments in the Cardano Foundation's treasury. This could pose a serious problem for the company, given high volatility of the cryptocurrency market over the past few months.

Hoskinson believes the ecosystem needs to provide returns, which can be then re-invested into the network. Such a move could boost the visibility of Cardano-based stablecoins and open the way to exchange listings, says the blockchain platform's founder.

Hoskinson's proposal seeks to increase Cardano’s stablecoin issuance ratio to around 33% or 40%, up from the current level of 10%. Under this plan, from $25 million to $50 million worth of coins could be allocated to convert ADA to Bitcoin.