Ardana, a stablecoin ecosystem based on Cardano’s blockchain (ADA), received $ 10 million in seed capital from a group of investors led by Three Arrows Capital and Ascensive Assets.
Ryan Matovu, Ardana CEO and Co-Founder made the following statement regarding the transaction:
“As the first all-in-one stablecoin ecosystem based on Cardano, our platform gives users convenient access to liquidity, a ubiquitous problem in the hypercompetitive defi world. We are also capable of speed, scalability and Cardano’s security to offer a decentralized financial solution that works for everyone and we will soon even make it easier to exchange currency in the chain.
Users can freely send, receive, store, borrow, and lend the stablecoin (known as dUSD) on the network. It will have an exchange rate of 1 to 1 to the US dollar and will be fully backed by cryptocurrencies like ADA.
Ardana plans to conduct a public sale of its secondary token, known as DANA, for the administration of the protocol, as indicated in its roadmap. The developers expect sales by the end of this year for 35.625 million of the total of 125 million tokens for between $ 0.30 and $ 0.60 each. The team also plans to introduce a decentralized exchange, called DEX Danaswap for the second quarter of next year. Ardana says that Danaswap will provide liquidity providers with low slippage and profitable farming opportunities.
The Cardano network currently has lower transaction rates than other networks like Ethereum, which can be beneficial for the introduction of the stablecoin. According to Bitquery and BitInfoCharts, respectively, users pay an average of $ 0.43 for each Cardano transaction, compared to $ 47.23 for Ethereum at press time. Cardano’s development activity has increased since its Alonzon fork last month, which enabled smart contract functionality on its blockchain.