Layer1 blockchain Cardano recently (9/2) completed the highly anticipated "Chang" hard fork, officially entering the Voltaire stage of the upgrade roadmap. $ADA holders can initiate on-chain governance cases. The future of Cardano is actually determined through the power of decentralization. However, some members of the community seem to be dissatisfied with its founder Charles Hoskinson recently.

Community dissatisfaction with the Cardano stablecoin ecosystem

Cardano community member Fak Snek 🐍 recently tweeted questioning why even the emerging public chain Sui has deployed the native $USDC officially authorized by Circle, but Cardano, as an established public chain, has not yet been able to issue any mainstream stablecoins.

Cardano - Community doubtSource: X/@ClubFak Cardano Social netizens question the slow development of the stablecoin ecosystem

In this regard, Charles Hoskinson stated that he is not responsible for the coordination of stablecoin issuers. On the contrary, this matter should be the responsibility of the Cardano Foundation (CF). Therefore, he has never understood why the community often accuses him of delaying or blocking Cardano’s issuance of stablecoins.

"We are working on Djed, the Wyoming stablecoin project, and communicate regularly with the $USDM and $USDA development teams. If the Cardano community is willing to authorize me and provide funds to discuss with Circle, this matter can be done."

From this conversation, we can see Hoskinson’s helplessness towards the unfounded accusations from the community, and alluded to the fact that the Cardano Foundation is using its huge financial resources (community treasury) to lead the development direction of Cardano.

Charles Hoskinson - Community responseImage source: X/@IOHK_Charles The founder of Cardano believes that CF should lead the ecological development of stable coins

What is the Djed that Hoskinson is referring to?

Djed is a CDP stablecoin (Collateralized Debt Position) project in the Cardano ecosystem, using Cardano’s native token ($ADA) as collateral to issue the U.S. dollar stablecoin $DJED. In order for $DJED to maintain a 1:1 price anchor with the U.S. dollar, its collateral is regularly maintained at 400% to 800% over-collateralization, that is, for every $DJED issued, at least $4 of $ADA reserves are required to prevent the currency from being Decoupling of stablecoins caused by price fluctuations.

Current status of stablecoins in the Cardano ecosystem

At this stage, Cardano has not cooperated with Tether or Circle, the two major stablecoin issuers, but this does not mean that there are no stablecoins available in its ecosystem. According to DefiLlama, the total market capitalization of stablecoins on the Cardano chain is $12.11 million, including $IUSD ($7.62 million), $MyUSD ($2.29 million), $DJED ($2.16 million), and $RUSD ($38,000).

Cardano - Stablecoin mapSource: DefiLlama Cardano Stablecoin Distribution

Despite this, mainstream stablecoins have always been an important foundation for promoting the development of DeFi. The absence of $USDT or $USDC in the ecosystem means that DeFi participants cannot send stablecoins to the Cardano chain through centralized exchanges; this means that Cardano There is a higher threshold for participation, which leads to its ecological development lagging behind many competitors in the public chain sector. Therefore, whether mainstream stablecoins can be introduced in the future will become a key factor for Cardano to survive in the next round of public chain wars.

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