A leading decentralized finance and stablecoin ecosystem, Ardana, that was being built on Cardano have been abruptly stopped because of funding and timeline constraints. It will remain open-source for builders, but treasury balances and remaining funds will be held by Ardana Labs until a competent dev team takes up the project.
Ardana said development on Cardano has been difficult with a lot of funding going into tooling, infrastructure, and security. The uncertainty around development completion led to the best course of action halting the development of dUSD.
The decision to suspend the project came as a shock to many because of the sudden nature of the announcement. But it appears that issues were already present for some time. Ardana, beginning July 4, has held an ongoing stake pool offering to fund its operations. Developers unlike traditional fundraising mechanisms do not receive the ADA delegated by users. They receive the staking rewards instead. And users are incentivized to keep delegating by receiving the native DANA tokens as a reward.
The simultaneous collapse of the price of DANA, ADA, and the declining Cardano staking yields from the ongoing crypto winter causes issues for ISPO issuers. Ardana’s native DANA tokens, over the past year, have lost nearly 99.85% of their value. Ardana said in January that almost all of the product/smart contract development is finished. It highlighted that it could launch products within a few weeks if it wanted, but instead blamed the delay on the Cardano network’s liquidation issues and risk to users’ funds.
Users reacted negatively to this and one user in particular pointed out that Ardana was blaming Cardano for its own lack of motivation and dedication.