I believe this 50 million ADA will mark the beginning of the expansion for the Cardano DeFi ecosystem. That is why I am voting yes. As I pointed out in the thread below, Cardano's circulating supply of stablecoins is critically low compared to its DeFi TVL, which severely limits the expansion of its DeFi ecosystem. In the DeFi market, stablecoins act as the de facto key currency and as a 'safe haven' from the volatility of the broader crypto market. They are the core infrastructure that serves as the benchmark for all token trading, enabling complex financial activities such as lending, deposits, and derivatives. However, because liquidity is so low, large-scale trades suffer from excessive slippage, which increases transaction costs. This, in turn, can ultimately lower the accessibility of Cardano DeFi for users. This 50 million ADA will generate yield from DeFi operations; 15% of the profits will be returned to the treasury, while the rest will be reinvested to grow liquidity....
I think that, to support the growth of #Cardano DeFi ecosystem, stablecoin liquidity needs to increase significantly.
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As shown below, when comparing the stablecoin market cap to DeFi TVL, Cardano lags far behind other chains. Cardano sits at just 10.7%, while Ethereum and L2 chains like Arbitrum all exceed 100%.
(source: defillama)
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