coinedition.com
Despite the continuous poor price performance of Cardano’s native coin ADA, its blockchain is not slowing down with new initiatives. The proof-of-stake blockchain network Cardano has teamed up with COTI, a layer-one protocol, to establish an over-collateralized algorithmic stablecoin, DJED.
According to an official statement, the DJED stablecoin will go live on the Cardano mainnet starting next year after a successful audit and rigorous stress testing.
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 Djed team pledged to back the DJED stablecoin in a one-to-one ratio against the United States Dollar using surplus collateral in cryptocurrencies like the ADA token. Selected partners and Decentralized Exchanges (DEXs) will incorporate the algorithmic stablecoin and compensate users for providing liquidity using DJED.
Shahaf Bar-Geffen, the CEO of COTI, said at a Cardano summit:
“Recent market events have proven again that we need a haven from volatility, and DJED stablecoin will serve as this 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.”
This latest innovation on the Cardano blockchain represents part of the promised boost in decentralized apps (DApps) development by the recently completed Vasil upgrade. However, the Cardano native coin continues to trade in the red, given the recent events in the crypto industry.
ADA currently trades at $.3018 with over 11% price drop in the last seven days. Notably, the Cardano token ranked as the eighth largest cryptocurrency with a market cap of over $10 billion.