Cardano Stablecoins: Community Discusses USDA, USDM, DJED Liquidity Pool
2025-02-01
Category: None

Cardano ADAUSD founder Charles Hoskinson proposed an idea of how Cardano ADAUSD might benefit from launching a liquidity pool with its three largest USD-pegged stablecoins. About 85% of his followers supported the proposal for USDA, DJED and USDM stable cryptocurrencies.
Cardano ADAUSD community welcomes Charles Hoskinson's idea of stablecoin-based liquidity pools
Cardano's ADAUSD stablecoins USDA, DJED and USDM might be integrated into a rebalanced liquidity pool to make the blockchain's liquidity healthier. Such proposal was shared by Cardano ADAUSD inventor Charles Hoskinson yesterday, Jan. 31, 2025, with his 1 million followers on X.
Should the community add to the annual budget a monthly purchase of USDA, USDM, and DJED to be managed by an external firm to improve liquidity in the ecosystem? 
If no, then comment on why or an alternative plan
This hypothetical liquidity pool should be topped up monthly and managed by a third-party entity with the purpose of generating yield. Hoskinson asked community enthusiasts to share their opinions and suggest alternative ideas for liquidity concepts on Cardano ADAUSD.
As of printing time, 5,227 followers of Hoskinson's account took part in the poll, with almost 85% supporting the idea of such a pool.
Also, the author stressed that only the Cardano ADAUSD community should decide which entity should be responsible for external management. Critics of the idea supposed that Cardano ADAUSD should better be tasked with bringing USDC to its ecosystem instead of experimenting with native stablecoins.
Some of them added that all Cardano's ADAUSD stablecoins are too early-stage to discuss the prospects of them being managed in an external liquidity pool.
Bringing back value to Cardano ADAUSD ecosystem
The main concern of skeptics was the prospect of moving stablecoin value outside the Cardano ADAUSD DeFi ecosystem. Addressing this point, Hoskinson highlighted that extra yield will be reinjected into Cardano's ADAUSD liquidity:
More minting and liquidity of native cardano stables that can enter our DeFi space as TVL and lending. And yes, it is if profits are converted back to ADA and donated to treasury
As per the DefiLlama tracker, the net capitalization of Cardano's ADAUSD stablecoins targets $25 million in equivalent. Cardano's DJED is the most popular stablecoin in this segment with a $3.29 million capitalization. DJED is available on Bitrue (BTR) CEX as well as on Wingriders and MinSwap decentralized exchanges.
Other notable Cardano stablecoins include IUSD, USDM and USDA.
This week, Cardano ADAUSD made headlines by activating its hotly-anticipated hard fork Plomin in a bid toward the ultimate stage of decentralization and community governance.