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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. <\/p>\n
\nIt’s official! $Djed<\/a> will launch on the Cardano Mainnet in January 2023! $Coti<\/a> $Ada<\/a> #Djed<\/a> pic.twitter.com\/cu8ryW6Lo7<\/a><\/p>\n
\u2014 Djed Stablecoin (@DjedStablecoin) November 21, 2022<\/a><\/p><\/blockquote>\n
According to the release, Djed is set to go live on the mainnet in Jan. 2023, pending a successful audit and a series of rigorous stress testing. According to the developers, Djed will be pegged to the US Dollar, backed by Cardano ($ADA), and will use $SHEN as its reserve coin.\u00a0<\/p>\n
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.\u00a0<\/p>\n
Shahaf Bar-Geffen, the CEO of COTI shared at the official announcement at the Cardano Summit:<\/p>\n
\u201cRecent 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.\u201d\u00a0<\/p><\/blockquote>\n
Related: Cardano price chart paints ‘Burj Khalifa’ with 7-month losing streak \u2014 More losses ahead?<\/em><\/strong><\/a><\/p>\n
Despite Cardano\u2019s lackluster price action, the blockchain continues to build and innovate within the ecosystem. On Sept. 22, Cardano\u2019s long-awaited Vasil upgrade finally went live<\/a>. The hard fork was designed to help improve the ecosystem\u2019s scalability and general transaction throughput capacity, as well as advance Cardano\u2019s decentralized applications (DApps)<\/a> development capacity. At the time of publication, Cardano was trading at $0.30.<\/p>\n<\/div>\n