Ardana, a Cardano (ADA)-based stablecoin ecosystem, has acquired $10 million in early funding from a consortium of investors headed by Three Arrows Capital and Ascensive Assets.
“As the first all-in-one stablecoin ecosystem built on Cardano, our platform provides users with convenient access to liquidity, an ever-present concern in the hyper-competitive DeFi world. 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’ll even be facilitating foreign exchange on-chain.” said Ryan Matovu, CEO and co-founder of Ardana, in a statement on the purchase.
On the network, users may freely transmit, receive, store, borrow, and lend the stablecoin dUSD. Furthermore, it will be completely collateralized with digital currencies such as Cardano and a 1:1 exchange rate with the US dollar (ADA).
Ardana’s roadmap wants to perform a public auction of its secondary token, DANA, for protocol governance. According to the project’s creators, the sale will occur later this year, with 35.625 million out of 125 million tokens available for $0.30 to $0.60 apiece. The Danaswap team hopes to launch a decentralized exchange or DEX by the second quarter of next year. For liquidity providers, Ardana says Danaswap will have minimal slippage and offer farming potential.
Cardano presently offers cheaper transaction costs than other Ethereum networks, which may be beneficial for stablecoin adoption. Users pay an average cost of $0.43 for each Cardano transaction, as per Bitquery and BitInfoCharts, compared to $47.23 for Ethereum at writing. Since the Alonzon Fork in the previous month, which enabled smart contract capability on its blockchain, Cardano’s development activity has accelerated.