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Cardano, a proof-of-stake blockchain platform, and COTI, a Layer 1 protocol based on DAG, have joined forces to introduce a new algorithmic stablecoin "Djed". The stablecoin would be supported by extra security in the related vein held in a reserve, according to a statement from the project. https://twitter.com/DjedStablecoin/status/1594804397615509506?
Djed - New Algorithmic Stablecoin in 2023
Djed is slated to launch on the mainnet in January 2023, according to the press statement, subject to the completion of a successful inspection and other severe stress tests. The creators claim that Djed will be supported by Cardano ($ADA), tied to the US Dollar, and employ the $SHEN cryptocurrency as its reserve token. With the help of a few specially selected collaborators and Decentralized Exchanges (DEXs), the algorithmic stablecoin will be incorporated. DEXs will pay users for utilizing Djed to provide liquidity. The developers intend to take a cautious and conservative approach to supply $ADA liquidity to the Djed smart contract to expand at a pace that is healthy and sustainable.
New Stablecoin Act As Safest Place
The COTI CEO, Shahaf Bar-Geffen, revealed during the Cardano Summit's formal announcement that recent market occurrences have demonstrated again that the company requires a safe harbor from instability, and Djed will act as this safe place on the Cardano network. In addition to having a stablecoin, they also need one with on-chain proof of reserves and decentralization.