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The Cardano Treasury Treasury Strategy Bitcoin Defi Boom

Cardano makes strategic movements to strengthen his Defi ecosystem, supported by solid fundamentals and community support. With its treasure holding approximately 1.7 billion ADA, founder Charles Hoskinson has established plans to convert a part to stablecoins to supply liquidity and long -term growth.

However, this new proposal sparked a discussion in the Cardano ecosystemsuggesting a strategic deployment of Blockchain’s A billion dollars treasure to provide both the liquidity of Bitcoin and Stablecoin. Andrew Throuvalas, researcher and defender of Bitcoin, believes that Cardano is only placed to direct the next phase of Bitcoin Defi, and that the time to act is now.

Meanwhile, the adoption of Cardano increases rapidly, with 110 million transactions and 22 billion ADA put 3,000 swimming pools, showing a solid community and a growing challenge activity.

Built for Bitcoin Defi but lacking in liquidity

Cardano’s architecture shares key similarities with Bitcoin, and its infrastructure defi has proven to be safe and reliable over time. Projects like Bitcoinos and Charms set the foundations for Bridgeless Bitcoin integration on Cardano, which could support what Throuvalas describes as a challenge of 2 dollars for Bitcoin.

Escape?

However, two major gaps remain. Cardano is currently lacking in depth stable Liquidity, which makes it difficult for institutions or large holders to operate on a large scale without having a shift. In addition, competing ecosystems such as Arbitrum are quickly built towards similar objectives, while the unique advantages of Cardano remain underestimated by the wider market of cryptography.

BTC stallion pools offered

To fill this gap, Throuvalas offers to allocate treasury funds to the main Cardano protocols such as Minswap, Liqwid Finance and Indigo Protocol. By building large stable pools, these platforms could offer Bitcoin holders the possibility of borrowing against their BTC more effectively, a case of critical use for Bitcoin DEFI participants.

He also suggests converting part of the ADA Treasury to Bitcoin and using it to pay the return directly to BTC. This would reward users who would bring their bitcoin to the Cardano network. As a precedent, Babylon has already attracted more than $ 4.5 billion in BTC with similar mechanisms, even if the yields are paid in chips rather than Bitcoin itself.

A timely opportunity for Cardano

Throuvalas thinks that this approach could considerably stimulate activity on Cardano and establish it as a long -term center for Bitcoin Defi. With its secure infrastructure and unexploited treasure, the network could capture a sustainable value and an ADA request if it moves quickly to attract the liquidity of Bitcoin.

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Faq

How could the conversion plans of the Cardano Treasury have an impact on the stability of the ADA market?

Although the intention is to stimulate liquidity, the conversion of a large amount of ADA could create short -term sales pressure. However, supporters argue that the market is deep enough to absorb it without significant impact on prices.

What are the potential risks to convert ADA to stablecoins and Bitcoin now?

Risks include potential short-term price volatility for ADA due to sales, and the Stablescoin market itself includes risk of volatility and inherent regulations. This could also point out a lack of confidence in the long -term value of ADA for some.

Could this decision attract institutional investors, and if so, what infrastructures or additional compliance measures would be necessary?

Yes, the increase in the liquidity of the stablescoin and Bitcoin could attract institutions. This would require solid compliance of institutional quality, security and potentially adapted financial products such as real tokenized assets.



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