The Cardano Foundation has proposed allocating 50 million ADA (worth about $40.5 million) to a new liquidity fund to expand stablecoin adoption and DeFi activity on the network.

The Foundation argued that deeper liquidity remains one of the blockchain network ecosystem’s most urgent needs. It added that an expanded stablecoin supply could bolster Cardano adoption and provide an adequate revenue source for its treasury.

According to the Foundation:

“This proposal not only seeks to deploy treasury funds for the good of the Cardano blockchain and create a sustainable source of revenue, but will also create additional benefits for the ecosystem.”

According to estimates, the deployments could return about 4% annually to the treasury, citing correlations between trading volume and total value locked (TVL). If liquidity deepens, trading volumes are likely to rise, generating more sustainable yields for the network.

The revenue earned through these protocols would be split: 15% would be converted to ADA and returned to the treasury each month, while 85% would stay in protocols to compound growth.

Cardano’s new roadmap

Meanwhile, the liquidity fund is only one element of a wider roadmap marking Cardano’s eighth anniversary.

In its new roadmap, the Foundation revealed plans to scale its Web3 adoption team to target exchange integrations, tokenized asset partnerships, and enterprise use cases.

By 2026, the Foundation expects to commit 2 million ADA ($1.62 million) to its Venture Hub, a program designed to back startups through collaborations with Draper University, Techstars, and CV Labs.

According to the Foundation:

“We aim to bootstrap the sustainability of the Cardano projects in the Venture Hub through direct investments and loans, technical advisory services, coaching, network advisory consultancy, integration support, and other business critical solutions.”

The roadmap also extends Car

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Author: Oluwapelumi Adejumo