New Algorithmic Stablecoin to Be Launched by Cardano in 2023

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Blockchain-based proof-of-stake platform, Cardano, has partnered with COTI, a Layer 1 protocol based on DAG, in order to launch an algorithmic stablecoin that is over-collateralized. In an announcement released to Cointelegraph, the project said that excess collateral will be offered as cryptocurrency reserves.

In accordance with the release, Djed is scheduled to launch on the main network in January 2023, once it has passed an audit and undergoes rigorous stress testing. As stated by the developers, Djed will be tied to the USD, supported by Cardano ($ADA), and its reserve coin will be $SHEN.

It will be integrated with a variety of partners and decentralized exchanges (DEXs), and users will be rewarded for providing liquidity through Djed. To maintain a sustainable and healthy growth rate, the developers will implement slow and gradual processes for the Djed smart contract to obtain liquidity in $ADA.

Shahaf Bar-Geffen, COTI’s CEO, said at the Cardano Summit:

“The recent market events have provided yet another reminder that we need to protect our assets from volatility, and Djed will provide us with this safety. It’s not enough to have a stablecoin, it must also be decentralized, and have on-chain verifiable reserves.”

Although Cardano currently has a lackluster price, its ecosystem continues to grow and innovate. Cardano’s long-awaited Vasil upgrade went live on Sept. 22. As a result of the hard fork, the ecosystem will have improved scalability and transaction throughput capacity, enabling Cardano to develop decentralized applications (DApps). Coin market cap of Cardano was $0.30 at the time of publication.

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Chris Munch

Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.