Cardano Foundation Proposes $50 Million Liquidity Fund for DeFi and Stablecoins
- The Cardano Foundation plans to allocate 50 million ADA (approximately $40.5 million) to enhance liquidity for stablecoin adoption and DeFi activities.
- Estimates suggest that the liquidity fund could yield about 4% annually for the treasury, linking trading volume increases with total value locked (TVL).
- Monthly revenue from this initiative will be split, with 15% converted back to ADA for the treasury and 85% reinvested into protocols.
- By 2026, Cardano aims to invest 2 million ADA ($1.62 million) in its Venture Hub to support startups through partnerships.
- The Foundation is also focusing on real-world asset tokenization, having already launched $10 million worth of assets in collaboration with Members Cap.
- In response to competitive pressures, Cardano will increase its marketing budget by 12% in 2026.
The proposed liquidity fund aims to address urgent needs within the Cardano ecosystem while potentially generating sustainable revenue through enhanced trading volumes and TVL growth.
With plans to allocate up to 50 million ADA, this initiative could significantly impact Cardano’s adoption of stablecoins and overall DeFi activity.(Source)
