The EMURGO community, one of Cardano’s founding companies, has approved the allocation of ADA 50 million (approximately USD 33.42 million) to strengthen stablecoin liquidity in the network’s DeFi ecosystem. This initiative is called Stablecoin DeFi liquidity budgethas exceeded the 50% acceptance standard and has proven strong support from community members.
EMURGO confirmed that it had voted in favor through X’s official account, and that this funding will contribute to a more stable market, Enables more agile access for both developers and users of the Cardano DeFi ecosystem. The company also thanked all the representatives who participated in the vote and congratulated the community for their participation.
This decision received support from users. Some stakeholders emphasized that the proposal is correct and necessary for the development of stablecoins, calling the approval a “huge success” and a show of leadership. Some suggest leveraging the available funds to continue expanding liquidity and further strengthening DeFi projects within the network.
The truth is that Cardano’s enhanced liquidity could favor the development of DeFi solutions on Bitcoin in the near future. In fact, the announcement follows recent comments from the network’s founder Charles Hoskinson, who described Bitcoin DeFi (the emerging decentralized finance ecosystem on Cardano based on BTC) as a “sleeping giant” in an interview with American media.
So, Hoskinson predicts Bitcoin DeFi will wake up within the next 3-5 yearswhich has the potential to surpass Ethereum’s market capitalization, and is attracting liquidity from sovereign wealth funds and large corporations. This was reported by CriptoNoticias.
Bitcoin DeFi is an area with huge opportunities for expansion. Charles Hoskinson believes that Ethereum, Solana, or Aptos will be at a disadvantage against Cardano when it comes to gaining liquidity from Bitcoin.
