Proof-of-stake blockchain platform Cardano has teamed up with COTI, a DAG-based Layer 1 protocol, to launch what it calls an over-collateralized algorithmic stable. The project said in an announcement provided to Cointelegraph that the stablecoin will be backed by additional collateral in the form of cryptocurrencies stored in a reserve.
It’s official! $ Djed the Cardano Mainnet will launch in January 2023! $Coti $ad # did pic.twitter.com/cu8ryW6Lo7
— Djed Stablecoin (@DjedStablecoin) November 21, 2022
It’s official! $Djed will launch on the Cardano Mainnet in January 2023! $Coti $Ada #Djed pic.twitter.com/cu8ryW6Lo7
— Djed Stablecoin (@DjedStablecoin) November 21, 2022
According to the release, Djed is expected to go live on the mainnet in January 2023, pending a successful audit and a series of rigorous stress tests. According to the developers, Djed will be pegged to the US dollar, supported by Cardano ($ADA), and will use $SHEN as a reserve currency.
The algorithmic stablecoin will be integrated with selected partners and decentralized exchanges (DEXs), which will reward users for providing liquidity using Djed. In an effort to grow at a healthy and sustainable pace, the developers plan to take a slow and gradual approach to providing $ADA liquidity to the Djed smart contract.
Shahaf Bar-Geffen, CEO of COTI, said during the official announcement at the Cardano Summit:
“Recent market events have proven once again that we need a refuge from volatility, and Djed will be a refuge in the Cardano network. Not only do we need a stablecoin, but we need a currency that is decentralized, and has proof of reserves on chain. »
Also Read: Cardano Price Chart Paints ‘Burj Khalifa’ With 7-Month Streak Of Losses, More Losses Ahead?
Despite Cardano’s price weakness, the blockchain continues to grow and innovate within the ecosystem. On September 22, the long-awaited Cardano Vasil upgrade finally went live. The hard fork was designed to help improve the scalability of the ecosystem and general transaction throughput, as well as advance Cardano’s decentralized application (DApp) development capabilities. At the time of writing, Cardano was trading at $0.30.
