Cryptocoin. com, Cardano (ADA) ecosystem made many integration and partnership announcements at the Cardano Summit that took place over the weekend. One of them was Cardano’s soon launching its first stablecoin. This stablecoin, named Djed, will make it easier to run decentralized finance (DeFi) projects by making room for cheaper transactions.
Cardano will soon get its first stablecoin
During Cardano Summit 2021, founder Charles Hoskinson announced that COTI will be the official stablecoin issuer that will issue stablecoins named Djed on the Cardano Blockchain. Hoskinson thinks these stablecoins could revolutionize the stablecoin space, especially at a time when demand is at its peak and regulatory focus is at its highest. Hoskinson uses the following expressions:
The djed stablecoin could be a breakthrough in the crypto space by addressing an entirely new kidollarse at a time when the industry is already experiencing astronomical growth. Djed shares our commitment to official verification, proving that crypto markets are a solid way to combat price volatility. It’s great to see COTI, a longtime partner of the Cardano ecosystem, in this new venture.
What is the new stablecoin Djed?
Many stablecoins are fixed at a 1:1 ratio to any fiat currency, sometimes to assets like gold. In the case of djed, the value is held steady by an algorithmic design that leverages smart contract design on the Cardano Blockchain to ensure a price as close to $1 as possible. To achieve this, Djed maintains a base coin reserve while mining and burning other stable assets and spare coins to counter fluctuations.
According to the whitepaper, there will be two versions of Djed: a minimal version designed primarily to serve as a medium of exchange, and an extended version that uses a smart contract continuous pricing model and amik ücredollarser to react more quickly to external events. It provides an optimum level of reserve and greater security when performing complex operations such as those performed in DeFi protocol transactions. COTI Group CEO Shahaf Bar-Geffen believes that the use of the DAG protocol can help derive a new stablecoin in Cardano that will advance it in the current market due to its decentralized nature, scalability and security.