Leading Cardano stablecoin project shuts down after excruciating launch delays

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On November 24, Ardana, a leading decentralized finance (DeFi) and stablecoin ecosystem building on Cardano (ADA), abruptly stopped development, citing “uncertainty over funding and project timeline”. The project remains open-source to builders, while treasury balances and remaining funds are held by Ardana Labs “until another competent development team in the community steps forward to continue our work.”

“Development on Cardano has been difficult with a lot of money going into tooling, infrastructure and security. This along with the uncertainty surrounding development completion has led to the best course of action being to halt development on dUSD.”

The move came as a shock to many due to the sudden nature of the announcement. However, it seems that there have been problems for some time. As of July 4, Ardana has held an ongoing initial stake pool offering, or ISPO, to fund its operations. Unlike traditional fundraising mechanisms, developers do not receive the user-delegated ADA, but instead receive the staking rewards. Users are incentivized to keep delegating by receiving the native DANA tokens as a reward.

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Unfortunately, a simultaneous collapse in the price of DANA, ADA, as well as declining Cardano stake returns from the ongoing crypto winter has created problems for ISPO issuers. In the past year, Ardana’s original DANA tokens have lost almost 99.85% of their value.

In January, Ardana claimed that “nearly all product/smart contract development has been completed. We could launch our products in a few weeks if we wanted to” and instead blamed the Cardano network’s “liquidation problems” and “risk to the user funds”. Most users reacted negatively, blaming Ardana instead. One person, @LucidCiC, wrote:

“It sounds like you’re blaming Cardano for your own lack of motivation and commitment. You decided to build here for a reason, and now you give up. Others like Axo will come in and take all the credit.’