Cardano founder Charles Hoskinson unveils $100M DeFi boost plan

Cardano founder Charles Hoskinson has dropped a bombshell proposal that could reshape the blockchain’s decentralized finance (DeFi) landscape.

In a strategic push to revitalize Cardano’s ecosystem, Hoskinson plans to inject $100 million worth of ADA from the Cardano Foundation’s treasury into DeFi projects. The goal? To accelerate adoption, stabilize liquidity, and position Cardano as a top contender in the fiercely competitive DeFi space.

The announcement has sent shockwaves through the crypto community, with supporters hailing it as a game-changer while skeptics question its market impact. With Cardano’s native token, ADA, trading at $0.63, far below its all-time high of $3.10, this move could either reignite investor confidence or trigger short-term volatility.

Why Cardano founder Charles Hoskinson is betting big on DeFi

The proposal, detailed in a 40-page confidential document, outlines a multi-phase strategy to strengthen Cardano’s DeFi infrastructure. A key focus is increasing the ratio of stablecoins—such as USDM, USDA, and IUSD—to 30-40% of total value locked (TVL). According to Cardano founder Charles Hoskinson, this benchmark is critical for achieving the liquidity levels seen in established DeFi ecosystems like Ethereum and Solana.

“As an ecosystem, we need to be ready to invest in ourselves,” Hoskinson declared, emphasizing that blockchain foundations must lead by example.

The funds will be strategically deployed to acquire Bitcoin and Cardano-native stablecoins, ensuring a diversified reserve that minimizes risk while boosting utility.

To prevent market disruption, the $100 million ADA sell-off will be executed gradually over 30 to 90 days, using time-weighted average price (TWAP) algorithms and over-the-counter (OTC) deals. This measured approach aims to avoid sudden price drops while reinforcing Cardano’s long-term growth.

Market reactions: excitement and skepticism collide

The crypto community is divided over Hoskinson’s bold strategy. Some ADA holders fear that liquidating such a large amount could suppress prices, but Cardano founder Charles Hoskinson remains unfazed.

“Hundreds of millions of dollars in ADA trade daily, this won’t destabilize the market,” he argued, pointing to Cardano’s deep liquidity pools.

Recent data supports his confidence: ADA futures open interest recently hit $900 million, while trading volume surged 58% in 24 hours, surpassing $1 billion.

Prominent Cardano supporters, like HOSKY, applaud the move, calling it a “necessary step” to strengthen homegrown stablecoins.

“Projects like USDM are censorship-resistant and align with Cardano’s values—they deserve more attention,” he said.

However, some voices urge caution. Rami, a Cardano memecoin creator, warns that too much too soon could backfire.

“A phased rollout would be smarter,” he suggests, advocating for steady ecosystem support rather than a sudden influx.

Cardano’s DeFi future: can Hoskinson’s gamble pay off?

If successful, this $100 million injection could set a precedent for blockchain foundations actively fueling their ecosystems. While rivals like Ethereum and Solana rely heavily on third-party developers, Cardano founder Charles Hoskinson is taking a hands-on approach, staking the project’s own reserves to drive innovation.

The timing couldn’t be more critical. With institutional interest in ADA rising and DeFi competition intensifying, Cardano must act decisively. Hoskinson’s plan isn’t just about liquidity, it’s a statement that Cardano is here to compete.

Will this gamble cement Cardano’s place among DeFi giants, or will market pressures undermine the effort? One thing is certain: all eyes are on Cardano founder Charles Hoskinson as he steers the blockchain into uncharted territory.