Cardano Founder Proposes $100M DeFi Boost Amid Security Concerns

Generated by AI AgentCoin World
Wednesday, Aug 13, 2025 3:08 am ET1min read
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Aime RobotAime Summary

- Cardano founder Charles Hoskinson proposed a $100M initiative to strengthen DeFi security and liquidity after community concerns over hot wallet risks.

- The plan involves buying Bitcoin and Cardano stablecoins to incentivize developers, with ADA sales managed via TWAP strategies to minimize market impact.

- ADA's recent price stabilization and $1.45M net inflow suggest cautious optimism, though consolidation near $0.822 support remains critical for upward momentum.

- If approved, the fund could drive long-term on-chain activity and align Cardano with industry trends prioritizing ecosystem growth and financial utility.

Cardano founder Charles Hoskinson has proposed a $100 million initiative to bolster the blockchain’s decentralized finance (DeFi) ecosystem, following a community-led security discussion. The unexpected proposal was triggered by concerns around hot wallet security, particularly in light of a new audit report for the DeFi platform FluidTokens [1]. Hoskinson’s response to a user query about securing funds in a hot wallet revealed broader strategic thinking, culminating in a proposal to allocate a significant portion of the

Cardano
Foundation’s treasury toward DeFi development.

The plan, still under internal review, involves purchasing

Bitcoin
and Cardano-native stablecoins such as
USDM
, USDA, and IUSD [1]. The goal is to enhance the DeFi ecosystem by providing liquidity and incentives for developers and users. Hoskinson emphasized that the strategy would be developed in collaboration with multiple DeFi projects, prioritizing operational readiness and practical deployment [1].

Addressing concerns about market impact, Hoskinson argued that the proposed sale of $100 million in

ADA
could be managed through gradual, time-weighted average price (TWAP) strategies and over-the-counter (OTC) transactions over a 30- to 90-day period [1]. He cited the high liquidity of ADA, with hundreds of millions of dollars in daily trading volume, as a mitigating factor. As of the time of the discussion, ADA was trading at $0.8587, up 9.55% in the past 24 hours [1].

The initiative represents a strategic shift for Cardano, aligning with broader trends in the blockchain industry where projects increasingly allocate resources to foster ecosystem growth [1]. If approved, the $100 million fund could be used to incentivize the development of new DeFi applications, support existing projects, and drive user adoption. The move highlights Cardano’s focus on both infrastructure security and financial utility, two pillars in its long-term vision.

ADA’s price movement has shown signs of stabilization and cautious optimism in recent trading sessions. On August 13, the token recorded a $1.45 million net inflow, marking a shift from months of outflows [2]. Technical indicators, including an RSI of 60.14 and a bullish bias in the DMI, suggest a moderate upward trend. However, traders remain cautious as the price consolidates near the $0.822 support level, with the $0.86–$0.90 zone acting as a key resistance area [2].

While the $100 million DeFi initiative may not directly influence the immediate price action of ADA, it could drive longer-term on-chain activity and utility, potentially reinforcing the token’s value proposition. The broader success of the plan will depend on its implementation and the resulting impact on developer and user engagement within the Cardano ecosystem.

Source:

[1] Hoskinson Proposes $100M Fund to Boost Cardano's DeFi

https://coinedition.com/security-talk-leads-to-surprise-100m-cardano-defi-proposal-from-charles-hoskinson/

[2] Cardano (ADA) Price Prediction for August 14

https://coinedition.com/cardano-ada-price-prediction-for-august-14-2025/