Cardano Stablecoins: Community Discusses USDA, USDM, DJED Liquidity Pool

Cardano (ADA) founder Charles Hoskinson proposed an idea of how Cardano (ADA) might benefit from launching a liquidity pool with its three largest USD-pegged stablecoins. About 85% of his followers supported the proposal for USDA, DJED and USDM stable cryptocurrencies.

Cardano (ADA) community welcomes Charles Hoskinson’s idea of stablecoin-based liquidity pools

Cardano’s (ADA) stablecoins USDA, DJED and USDM might be integrated into a rebalanced liquidity pool to make the blockchain’s liquidity healthier. Such proposal was shared by Cardano (ADA) inventor Charles Hoskinson yesterday, Jan. 31, 2025, with his 1 million followers on X.

Should the community add to the annual budget a monthly purchase of USDA, USDM, and DJED to be managed by an external firm to improve liquidity in the ecosystem?

If no, then comment on why or an alternative plan

— Charles Hoskinson (@IOHK_Charles) January 31, 2025

This hypothetical liquidity pool should be topped up monthly and managed by a third-party entity with the purpose of generating yield. Hoskinson asked community enthusiasts to share their opinions and suggest alternative ideas for liquidity concepts on Cardano (ADA).

As of printing time, 5,227 followers of Hoskinson’s account took part in the poll, with almost 85% supporting the idea of such a pool.

Also, the author stressed that only the Cardano (ADA) community should decide which entity should be responsible for external management. Critics of the idea supposed that Cardano (ADA) should better be tasked with bringing USDC to its ecosystem instead of experimenting with native stablecoins.

Some of them added that all Cardano’s (ADA) stablecoins are too early-stage to discuss the prospects of them being managed in an external liquidity pool.

Bringing back value to Cardano (ADA) ecosystem

The main concern of skeptics was the prospect of moving stablecoin value outside the Cardano (ADA) DeFi ecosystem. Addressing this point, Hoskinson highlighted that extra yield will be reinjected into Cardano’s (ADA) liquidity:

More minting and liquidity of native cardano stables that can enter our DeFi space as TVL and lending. And yes, it is if profits are converted back to ADA and donated to treasury

As per the DefiLlama tracker, the net capitalization of Cardano’s (ADA) stablecoins targets $25 million in equivalent. Cardano’s DJED is the most popular stablecoin in this segment with a $3.29 million capitalization. DJED is available on Bitrue (BTR) CEX as well as on Wingriders and MinSwap decentralized exchanges.

Other notable Cardano stablecoins include IUSD, USDM and USDA.

This week, Cardano (ADA) made headlines by activating its hotly-anticipated hard fork Plomin in a bid toward the ultimate stage of decentralization and community governance.

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