What to Know:
- A Cardano user lost over $6 million due to slippage while swapping ADA for the USDA stablecoin.
- Charles Hoskinson clarified that bringing stablecoins to Cardano is primarily the Cardano Foundation’s responsibility.
- Hoskinson emphasized the need to bolster Cardano’s DeFi ecosystem to prevent similar incidents.
Cardano’s founder, Charles Hoskinson, recently addressed criticism regarding the blockchain’s stablecoin landscape after a user experienced a significant loss swapping ADA for USDA. The incident has sparked discussions about the need for a more robust decentralized finance (DeFi) infrastructure on Cardano and the roles of different entities in its development. While Hoskinson maintains that stablecoin integration is not his direct responsibility, he acknowledges the urgency of improving Cardano’s DeFi capabilities.
The incident involved a wallet exchanging 14.4 million ADA for USDA, resulting in a $6.05 million loss due to illiquidity. Community reactions were mixed, with some blaming the trader and others directing criticism toward Hoskinson for the lack of a top-tier stablecoin. This event underscores the risks associated with interacting with less liquid liquidity pools and lesser-known stablecoins.
The CF was given 600 million ada to do this. It is their job
— Charles Hoskinson (@IOHK_Charles) November 17, 2025
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Hoskinson clarified that the Cardano Foundation, allocated 600 million ADA, is primarily responsible for bringing stablecoins to the network. Despite this, Hoskinson’s IOG previously partnered with COTI to launch the Djed stablecoin, and he has also engaged in talks with Ripple about potentially bringing RLUSD to Cardano. These efforts indicate an ongoing interest in expanding Cardano’s stablecoin options and DeFi ecosystem.
There were no warnings!
But levity aside, it’s an ecosystem wide teachable moment and conversation about scaling up Cardano’s DeFi layer in 2026. The tech is there, we have to bring the capital and integrations. https://t.co/ARSW0SQYlC pic.twitter.com/em6fbmpMwz
— Charles Hoskinson (@IOHK_Charles) November 17, 2025
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Hoskinson emphasized that strengthening Cardano’s DeFi ecosystem is crucial, requiring community collaboration to mobilize capital and integrations. While the technology is in place, strategic efforts are needed to foster growth and prevent future incidents related to illiquidity and slippage. This proactive approach aims to create a more secure and efficient environment for DeFi activities on Cardano.
In conclusion, the recent incident involving ADA and USDA highlights the importance of stablecoin liquidity and a robust DeFi infrastructure. While the responsibility for bringing stablecoins to Cardano lies primarily with the Cardano Foundation, ongoing discussions and efforts suggest a collaborative approach to enhancing the network’s DeFi capabilities. The focus remains on building a stronger, more resilient ecosystem for users and investors.
Source: Original article
