Charles Hoskinson Breaks Silence On What Is “Killi

Charles Hoskinson Breaks Silence On What Is “Killing” Cardano
Charles Hoskinson says Cardano is suffering from a low stablecoin ratio, but his idea for a solution faces fierce criticism.

Charles Hoskinson has identified a troubling stablecoin situation on Cardano as a major obstacle to decentralized finance (DeFi) activity on the network. To address the undersupply of stablecoin liquidity, the founder has unveiled an ambitious plan, though critics are pointing out potential downsides.
Charles Hoskinson Identifies Cardano Major Problem
While recent metrics surrounding Cardano have been positive, Hoskinson says the network’s stablecoin data remains underwhelming. In a post on X, the Cardano founder revealed that the ratio of Stablecoin Market Capitalization to Total DeFi TVL (Total Value Locked) is significantly lower than that of other blockchains.
Ethereum and Solana have ratios of 195% and 125%, respectively, while Cardano’s ratio sits at just 9.65%. According to Hoskinson, this indicates a “severe” stablecoin liquidity undersupply, which is negatively impacting DeFi activity on the network.
Hoskinson argues that a potential solution will be to convert 140 million ADA into stablecoins from a slice of the Cardano Treasury. His proposal involves converting ADA into USDM, Cardano’s fiat-backed stablecoin, to “fill a significant vacuum in the ecosystem.”
Recently, USDM partnered with Lace Wallet in a push to become the dominant stablecoin on the network amid rising interest in Bitcoin DeFi.
“What is killing Cardano is our stablecoin situation,” said Hoskinson. “This would start to solve it.”

Hoskinson adds that the move will generate additional non-inflationary revenue for the treasury while improving its overall treasury.