Linda: Cardano PRIME Needs More Than New DeFi Products

AlphaGrowth’s Cardano PRIME program is targeting a net increase of 200 million dollars in Cardano DeFi TVL over 12 months. The program secured approval for a 120 million ADA treasury allocation, while an assessment of 25 DeFi categories produced 17 areas for potential development.

In her latest video, Linda examined which priorities could bring external liquidity into Cardano and where new funding may duplicate products that already exist.

Her assessment centered on a persistent ecosystem constraint: Cardano has no shortage of ideas, but it continues to struggle with user acquisition, accessibility and sustained economic activity.

EVM Capital Sits at the Center of Cardano PRIME

PRIME begins with an ecosystem assessment, followed by a prioritized roadmap and then the deployment of grants, incentives, partnerships and capital.

One of its first requirements is a wallet capable of serving both Cardano and EVM users. AlphaGrowth is specifically seeking a product with existing adoption, rather than another wallet without an established user base.

Linda presented the integration of Cardano into a major EVM wallet, potentially one operating at the scale of MetaMask, as the stronger route. Expanding a Cardano wallet such as Eternl into EVM networks would be another option, but it would not directly address the goal of bringing existing EVM users into Cardano.

AlphaGrowth is also seeking a general purpose bridge between Cardano and networks such as Ethereum, Base and Arbitrum. Linda mentioned FluidTokens as one Cardano project already working on related solutions, although its participation in PRIME has not been confirmed.

Linda stated that approximately 90 percent of ADA is held in Japan and argued that many of those holders are unlikely to become DeFi users. The video did not display a source for the current geographical distribution, but she used the figure to explain why PRIME cannot depend entirely on existing ADA holders.

Cardano has previously offered attractive yields without converting a large share of its holders into active DeFi participants. AlphaGrowth is therefore targeting capital that is already being used across other blockchain ecosystems.

The program also proposes campaigns that reward users for specific onchain actions such as trading, lending, borrowing and providing liquidity. Linda warned that incentives can attract temporary capital that leaves as soon as the rewards end. The surrounding products and infrastructure must give those users a reason to stay.

Cardano DeFi Standards Target Capital Efficiency

Several PRIME categories focus on shared infrastructure rather than standalone applications.

AlphaGrowth wants a common interface for executors and scoopers, the offchain actors used by Cardano protocols to collect and settle transactions. Individual applications currently operate their own versions of this infrastructure, creating duplicated work and making integrations more difficult.

The program is also seeking an eUTXO native vault standard that wallets, aggregators and DeFi protocols could support more easily. Additional priorities include curated lending, concentrated liquidity and automated liquidity management.

Curated markets would allow specialists to configure collateral, interest rates and risk parameters. Concentrated liquidity and automated range management could make existing capital more productive. Linda connected this area with the DeFi Kernel vision and Dano Finance, adding that Leios capacity and Peras finality could strengthen the technical environment around these products.

A second independent oracle price feed is another requirement. Cardano already has native oracle providers, while some protocols operate their own systems. Linda referenced the ongoing work around Pyth integration and said it had received mixed reactions from Cardano developers.

PRIME also includes collateralized debt positions that support yield bearing collateral. Users could borrow against an asset while continuing to earn a return from the underlying position. Indigo already provides CDP infrastructure on Cardano, leading Linda to suggest that AlphaGrowth could work with the existing protocol instead of financing a parallel product.

Yield bearing stablecoins appear on the list as well. Linda recalled periods when Liqwid offered approximately 25 percent annual returns on stablecoin positions, which she described as relatively low risk. Such strategies still carry smart contract, liquidity and stablecoin depeg risks.

Those returns did not produce a substantial inflow of stablecoin capital. Linda therefore questioned whether higher yields alone can solve Cardano’s liquidity problem. AlphaGrowth has not yet explained how a new yield bearing stablecoin would attract users who ignored similar opportunities in the past.

Tokenized government bonds, onchain credit and insurance received a more positive assessment. Linda described these categories as a natural fit for Cardano’s security and decentralization model. Insurance could also provide part of the risk infrastructure expected by institutional participants and larger capital providers.

New Products Must Justify Splitting Cardano Liquidity

AlphaGrowth wants to support a second perpetuals venue and an options market. Linda questioned the need for another perpetuals platform because Cardano already has Strike, while Atlas and Pandora are preparing additional products. Ascend is also developing access connected with Cardano and Midnight infrastructure.

With liquidity already limited, another competing venue could divide the market further. AlphaGrowth has not yet explained which functions existing platforms cannot provide or why an additional venue would strengthen the wider ecosystem.

The request for a new NFT marketplace raised similar concerns. Linda referenced the closure of JPEG Store and questioned whether another marketplace could offer more than WayUp, which continued operating with limited resources. A broader tokenized asset strategy could give the category a different purpose, but that direction has not been detailed.

PRIME is also seeking professional token launch and distribution infrastructure. Cardano already has tools such as NMKR and Snek.fun, while Anvil and Pillar provide customized launch services. Pillar, the development division of BankFi, says it has supported hundreds of token and NFT launches.

Linda suggested that this category may target external projects that need a complete launch and distribution service rather than another basic token creation tool.

The final category covers infrastructure for AI agents, including indexing, taxonomy and connections between applications. Autonomous agents interacting with DeFi will require standardized access to blockchain data, lending markets, trading systems and payment applications. Linda identified Masumi as a potential contributor in this area.

AlphaGrowth’s Eric said PRIME intends to help existing teams reach institutional standards. Many projects are already progressing, according to his explanation, but need clearer specifications, business development support and a defined path toward market demand.

Linda also highlighted Cardano’s reputation outside its community. The network is still frequently described as slow, difficult to build on and lacking applications. She considers parts of that criticism outdated or unfair, but acknowledged that the perception makes user acquisition more difficult.

Matching the products available on Ethereum, Solana or Base may therefore be insufficient. Users who already have liquidity, integrations and applications on those networks need a specific advantage that justifies moving elsewhere.

PRIME’s second phase must now convert the 17 categories into a prioritized roadmap with selected teams, budgets and measurable objectives. The results can then be assessed through external capital attracted, activity generated and liquidity retained after incentives end.

Otherwise, Cardano may receive stronger DeFi products that continue serving the same limited group of users. Reaching the 200 million dollar target requires PRIME to turn improved infrastructure into a credible reason for new capital to enter Cardano and remain there.