A New Algorithmic Stablecoin from Cardano is set launch in Early 2023!

Despite the crypto winter which has been prevalent for the crypto community in 2022, many historic events took place for some of the most well known crypto networks! Starting from the infamous Ethereum Merge, to Cardano’s Vasil Hard fork, to Solana coming out with their phones! With so much happening around the FTX incident that almost shook the crypto community along with many VCs, the matter is moving ahead with their solving-the-problem strategies and we have newer updates from various projects coming in.

Cardano is coming out with a new stablecoin in 2023!

The proof of stake blockchain platform, Cardano, has joined hands with COTI, a DAG-based Layer 1 protocol to work on a new stablecoin project. They are looking forward to launching what it refers to as an over-collateralized algorithmic stablecoin. According to the announcement provided to Cointelegraph, the project said that the stablecoin will be backed by excess collateral in the form of crypto stored in a reserve.

It’s official! $Djed will launch on the Cardano Mainnet in January 2023! 🚀$Coti $Ada #Djed pic.twitter.com/cu8ryW6Lo7

— Djed Stablecoin (@DjedStablecoin) November 21, 2022

The stablecoin is named Djed. According to Cardanocube, it is a stablecoin, based on algorithmic design. It uses smart contracts to ensure price stabilization, and the coin will be useful for decentralized finance (DeFi) operations. It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins. Djed operates by maintaining a reserve of base coins while minting and burning various other stable assets and reserve coins. It is designed to be used for paying transaction fees on the Cardano network. One benefit of this is to make transaction costs more predictable, so avoiding volatile and exorbitant gas fees for users.

The final audit report for $Djed is scheduled for the end of November 🎉 Here’s the update from the CEO of $Coti, @shahafbg. pic.twitter.com/6SKXrio5Kg

— Djed Stablecoin (@DjedStablecoin) October 14, 2022

The stablecoin, Djed is set to go live on the ADA mainnet in January 2023 after it goes through a successful audit and a series of rigorous stress testing. According to the developers, the Djed token will be pegged to the US Dollar while being backed by Cardano ($ADA). It will also use $SHEN as its reserve coin.

Read more: Cardano Price Prediction

This algorithmic stablecoin will be integrated with selected partners and Decentralized Exchanges, also referred to as DEXs, who will reward users for providing liquidity using Djed. According to the Cointelegraph report, with the means to grow at a sustainably healthy pace, the developers o the project has planned to adopt a gradual and slow approach in providing $ADA liquidity to the Djed smart contract.

With the prices not at par with the other altcoins, Cardano keeps on improving and innovating within its ecosystem. Earlier this year, in September, the Cardano Vasil Hard Fork went live. That was the next logical step in its plan to improve upon the speed and scalability of the network. This essentially brings the project another step closer to dethroning the largest smart contract and DeFi platform out there – Ethereum. With this latest upgrade, Cardano’s developers hope to improve the efficiency of smart contracts to make Cardano cheaper and faster to use.

Read more: Top Stablecoins 2022

Source: Cointelegraph