Proposal Details
Participate in discussions and decision-making processes guided by community governance.
Use Treasury To Boost Liquidity For Stablecoin
madfolio
Abstract
Cardano Foundation has confirmed that there is not enough interest from exchanges to host Cardano fungible tokens. SNEK has made it but others are struggling with volume and liquidity. This proposal would set 1% of the treasury to a stablecoin to provide liquidity, stability and show the community is taking the need for a stable coin on the network seriously, improve volumes and a base on which to build bigger projects. The community would vote on which coin ie DJED or USDC. There is currently 1.66BN ADA in the treasury. 1% would be 16,600,000 ADA. The community could go futher and vote for a recurring amount to be invested in stable coin liquidity on a regular basis, setting aside 1% of fees every epoch.
Motivation
Cardano Foundation reports that exchanges are not that interested in listing Cardano fungible tokens. SNEK however has made it.
Rational
Interest needs to be generated in the network and a stable base needs to be formed in order to provide liquidity. This would then open up for increased volumes and shows a governacne model that is providing stability, not just being a venture capital model like Catalyst.
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