Cardano Launches Its Algorithmic Stablecoin Named ‘Djed’ Next Year
Cardano is all set to launch an algorithmic stablecoin in 2023, which will be backed by overarching crypto collateral. The proof-of-work (PoW) blockchain has partnered with COTI to launch this ‘over collateralised’ stablecoin. COTI is a Layer 1 protocol that can provide the foundation for blockchain infrastructure. The name of this stablecoin has been decided as ‘Djed’ and it is estimated that it will go live on the mainnet provided by COTI around January 2023.
Launched in 2017, the Cardano blockchain can be used to create smart contracts, decentralized applications, and protocols. Its native cryptocurrency ADA is in eighth place CoinMarketCapwith a current market value of $10.3 billion (approx. Rs. 84,888 crore).
Before Djed goes live, it will have to clear a series of stress tests and rigorous tests. The stablecoin will be settled in US dollars. It will use ADA and SHEN as the designated cryptocurrencies.
The stablecoin will be integrated with selected partners and decentralized exchanges (DEXs). This will reward its users by giving money through Djed.
“Recent market events have proven once again that we need a safe haven for instability, and Djed will serve as a safe haven for the Cardano network. We not only need a stablecoin, but we need one that is decentralized, and has proof-of-custody,” CoinMarketCap Report quoted COTI CEO Shahaf Bar-Geffen as saying.
In September 2022, Cardano’s Vasil development finally went live. The hard fork was designed to help improve the scalability of the ecosystem and the ability to use common transactions.
As it stands today, Cardano is already making significant progress. More than 3,200 Plutus documents (the native smart contract language used in Cardano) exist on the blockchain.
The blockchain has processed a total of more than 50 million transactions and developers are building 1,100 projects using the blockchain.