Cardano Eyes Sovereign Wealth Fund to Tackle Stablecoin Liquidity Gap

• Cardano aims to transform $100M of its treasury into a diversified yield portfolio.
• Boosting DeFi stablecoin ratio to 33% could enhance liquidity and exchange listings.
• Proposed treasury board may decentralize fund management and boost community trust.

Cardano is considering a significant overhaul of its treasury strategy, with founder Charles Hoskinson outlining an ambitious plan to enhance the protocol’s DeFi liquidity and long-term stability. The proposal aims to restructure how Cardano manages its vast treasury by converting a portion of it into a diversified, yield-generating portfolio.

This would include stablecoins, Bitcoin, and other synthetic assets, marking a strategic shift in its financial posture. If realized, the initiative could transform Cardano’s treasury into a decentralized version of a sovereign wealth fund, boosting ecosystem growth and its overall appeal to users.

How Would the New Treasury Model Work?

Currently, Cardano’s treasury, valued at approximately $1.2 billion, is funded by network inflation and transaction fees but does not hold any yield-generating assets. The plan is to convert roughly $100 million worth of ADA abou…

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