Proof-of-stake blockchain platform Cardano is teaming up with COTI which is a DAG-based Layer 1 protocol to create what it calls an over-collateralized algorithm based stablecoin. A project announcement assured investors that the stablecoin will be backed by an abundance of the reserve cryptocurrency.
The press announcement states that Djed is scheduled to go live on the public blockchain in January 2023, provided that the audit and the sequence of rigorous stress tests are passed with flying colors. The creators have said that the Djed would have a fixed exchange rate to the US Dollar, will have the backing of Cardano ($ADA), and will utilize $SHEN as its reserve coin.
What Is So Special About Djed?
Users will be rewarded in Djed for providing liquidity on chosen DEXs that have integrated with the algorithmic stablecoin. The architects of the Djed smart contract want to provide $ADA liquidity to it in a calm and steady fashion in an effort to expand at a sustainable and healthy rate.
Speaking during the formal announcement at the Cardano Summit, COTI CEO Shahaf Bar-Geffen said that recent market events have shown again that they require a safe place from the volatile nature of the crypto market and that Djed would act as this safe haven within the Cardano network. They need a stablecoin, and preferably one with on-chain proof of reserves and decentralization.
Cardano Stays Afloat Despite Poor Performance This Year
Cardano’s price has been flat, but the blockchain technology behind it is still expanding and improving. The Vasil update for Cardano, which had been delayed for a long time, was released to the public on September 22.
The purpose of the hard fork was to enhance Cardano’s ability to create decentralized apps (DApps) and increase the scalability and general activity bandwidth of the ecosystem. Market price for Cardano at the moment of publication was $0.31.
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