Cardano Stablecoin Protocol Raises $10M Ardana In Latest Funding Round – News Couple
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Cardano Stablecoin Protocol Raises $10M Ardana In Latest Funding Round

Ardana, a stablecoin ecosystem built on the Cardano blockchain (ADA), has received $10 million in seed capital from a group of investors led by Three Arrows Capital and Ascensive Assets.

Ryan Matovu, CEO and co-founder of Ardana, released the following statement regarding the deal:

“As the first all-in-one stablecoin ecosystem built on Cardano, our platform offers users convenient access to liquidity, a constant concern in the highly competitive world of DeFi. We are also able to leverage Cardano’s speed, scalability, and security to offer a decentralized financial solution that works for everyone, and soon We will facilitate foreign exchange across the chain.”

Users can freely send, receive, store, borrow and lend the stablecoin – known as dUSD – on the network. It will have a 1:1 exchange rate with the United States dollar, and it will be fully secured by cryptocurrencies like Cardano (ADA).

Ardana plans to make a public sale of its bytecode, known as DANA, to govern the protocol as outlined in its roadmap. The developers of the project plan to go on sale later this year, with 35.625 million out of 125 million tokens to grab $0.30 to $0.60 each. The team also plans to introduce a decentralized exchange, or DEX, called Danaswap by the second quarter of next year. Ardana claims that Danaswap will feature low slippage and yield farming for liquidity providers.

The Cardano network currently has lower transaction fees than other networks on Ethereum, which could be beneficial for the adoption of a stablecoin. According to Bitquery and BitInfoCharts, respectively, users pay an average cost of $0.43 per Cardano transaction compared to $47.23 for Ethereum at press time. Cardano’s development activity has been gaining momentum since Alonzon Fork last month – enabling smart contract functionality on the blockchain.