HomeAltcoinsCardano to launch new algorithmic stablecoin in 2023

Cardano to launch new algorithmic stablecoin in 2023

-



Cardano to launch new algorithmic stablecoin in 2023

Proof-of-stake blockchain platform, Cardano, has partnered with COTI, a DAG-based Layer 1 protocol, to launch what it refers to as an over-collateralized algorithmic stablecoin. The project said in an announcement provided to Cointelegraph that the stablecoin will be backed by excess collateral in the form of cryptocurrency stored in a reserve.

According to the release, Djed is set to go live on the mainnet in Jan. 2023, pending a successful audit and a series of rigorous stress testing. According to the developers, Djed will be pegged to the US Dollar, backed by Cardano ($ADA), and will use $SHEN as its reserve coin. 

The algorithmic stablecoin will be integrated with selected partners and Decentralized Exchanges (DEXs), who will reward users for providing liquidity using Djed. In a bid to grow at a sustainably healthy pace, the developers plan to adopt a gradual and slow approach to providing $ADA liquidity to the Djed smart contract. 

Shahaf Bar-Geffen, the CEO of COTI shared at the official announcement at the Cardano Summit:

“Recent market events have proven again that we need a safe haven from volatility, and Djed will serve as this safe haven in the Cardano network. Not only do we need a stablecoin, but we need one that is decentralized, and has on chain proof of reserves.” 

Related: Cardano price chart paints ‘Burj Khalifa’ with 7-month losing streak — More losses ahead?

Despite Cardano’s lackluster price action, the blockchain continues to build and innovate within the ecosystem. On Sept. 22, Cardano’s long-awaited Vasil upgrade finally went live. The hard fork was designed to help improve the ecosystem’s scalability and general transaction throughput capacity, as well as advance Cardano’s decentralized applications (DApps) development capacity. At the time of publication, Cardano was trading at $0.30.



LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Bitcoin, Ethereum, Polkadot, and Tron Daily Price Analyses – 3 December Roundup

The global crypto market has faced a trend of decline in value over recent hours. The ongoing changes in the performance of Bitcoin, Ethereum,...

Mysterious Bitcoin miner shows off oldest signature dated Jan. 2009

Answering the question 'Who has/had the oldest mined Bitcoin?' an anonymous member shared a signature dating back to January 2009, just a week...

Dogecoin price analysis: DOGE shows bullish signal with $0.10 mark in sight

Dogecoin price analysis remains strong with today’s price action, as price moved back above the $0.1 mark initially, before settling down to at $0.9976...

Avalanche partners with Alibaba Cloud to launch new validators

Alibaba Cloud, the leading cloud service provider in Asia Pacific now supports the Avalanche public blockchain. The integration allows users to build validator nodes....

Most Popular

spot_img