Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our website policies before making any financial decisions.
Ardana (DANA), a decentralized finance (DeFi) protocol built on the Cardano platform come to a standstill amid the recent crypto meltdown. The team behind the project cited uncertainty about funding and timing as the reason for the cessation of operations.
Why was Ardana dubbed the “curve financing of Cardano”?
Ardana was a DeFi protocol based on the Cardano blockchain. At its core, it was a decentralized, collateral-backed exchange that allowed users to leverage supported native Cardano assets by generating stablecoins against them.
Ardana also had a stableswap DEX. The decentralized exchange, called Danaswap, aimed to enable highly efficient swaps between stablecoins. It also enabled liquidity providers to earn passive income by providing liquidity to the protocol.
Additionally, Ardana served as a crypto lender, allowing users to use Cardano’s local currency, ADA, as collateral and receive DUSD loans. In short, Ardana aspires to be “the MakerDAO and curve funding of Cardano.”
Notably, Ardana closed a $10 million investment round in late October. The round was led by the now-defunct crypto fund Three Arrows Capital, Cardano’s cFund, and Ascensive Assets, with participation from Morningstar Ventures and Mechanism Capital.
“As the first all-in-one stablecoin ecosystem built on Cardano, our platform offers users convenient access to liquidity, a pervasive problem in the hyper-competitive Defi world,” said Ryan Matovu, CEO and co-founder of Ardana Zeit.
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Ardana halts operations citing funding concerns
Although Ardana is one of the most promising DeFi projects on Cardano, it recently shut down operations due to funding concerns. “Unfortunately, due to recent developments regarding funding and the uncertainty of the project schedule, the Ardana project has had to be halted,” according to the project’s official Twitter account said in a Nov. 24 tweet.
The project added that their code will remain open source, allowing developers to continue working on the project if they wish. They also claimed that developing the project on Cardano is difficult and they have to spend a lot of money on infrastructure works.
“Development on Cardano has been difficult as a lot of money has gone into tools, infrastructure and security. This coupled with the uncertainty of completion of development has led to the best course of action being to halt development of dUSD.”
We would like to thank you all for your support throughout our development. We will continue to engage in the Cardano community. Further updates about the current ISPO will follow shortly.
— Ardana – DeFi hub by Cardano (@ArdanaProject) November 24, 2022
As expected, the Cardano community was not happy about the news. “They raised $10 million. How did the money go away in 1-2 years for “development”? I don’t get it,” said one Twitter user.
Some even claimed that the development team mishandled funds or that the project was a pure scam. Twitter user DeFiFUDDestroy claimed in a tweet earlier this month that Ardana CEO Ryan Matovu was a “serial scammer,” adding that he was behind two other DeFi scams, Your Finance Decentralized (YFDFI) and Plethori (PLE).
@ArdanaProject @ryanmatovu RYAN MATOVU this guy is a shitcoin scammer first $YFD #YFDFI finance #YFD second was $PLE #plethori
third is $DANA @ArdanaProject SERIAL SCAMMER AND YOU GO RIGHT BACK INTO IT.
3 SHITE PROJECTS THAT ARE CANCELED AND STARTED $DANA tot3mo. , pic.twitter.com/hc7icKWQ1B
— DeFi_ZooRacer🏎️🦔FUD Destroyer🎮#TeamBubblesFamGG (@DeFiFUDDestroy) October 4, 2021
Meanwhile, Ardana’s native token DANA has taken a major hit following the recent news. The coin is currently trading at $0.008395, down 36.23% over the past 24 hours. The coin is down more than 99% compared to its all-time high of $10.84 recorded in November 2021.
On the other hand, ADA has been largely unchanged over the past day and it is currently trading around $0.3143. The broader crypto market has also not changed in the last 24 hours. However, the market is still at its lowest in two years following FTX’s recent collapse.
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Do you think more DeFi projects will halt development as the crypto winter rages on? Let us know in the comments below.
About the author
Ruholamin Haqshanas is an accomplished crypto and financial journalist with over two years of writing experience in the field. He has a solid understanding of various segments of the FinTech space, including the decentralized iteration of financial systems (DeFi) and the emerging non-fungible tokens (NFTs) market. He is an active user of digital assets for remittances.