worldcoinindex.com
The team at Cardano blockchain is all set for the launch of its overcollateralized stablecoin Djed. COTI Network, the developer of the Djed stablecoin officially announced that the stablecoin launch is scheduled for the next week.
The Djed stablecoin is expected to boost growth and more use cases in the evolving decentralized finance (DeFi) ecosystem of the Cardano network.
In their latest blog post, the COTI Network noted that it’s collaborating with more players. COTI announced that crypto exchange Bitrue will be listing Djed and SHEN on its platform.
Explaining the technological developments around Djed, COTI mentioned: “We started the chain index syncing process. This process may take 14 days, and as we started the sync a week ago, we expect to complete it next week and be ready to launch. As of right now, this is the only technical bottleneck holding up the launch”.
Furthermore, COTI noted that they are working on a snapshot mechanism and interface which will allow the tracking of additional rewards for $SHEN holder generated with the staking of ADA deposited in the Djed smart contract. “We are developing a snapshot mechanism and UI that will be added to djed.xyz, where $SHEN holders will be able to track these extra rewards,” added COTI.
The launch of the Djed stablecoin comes with high expectations as the Cardano ecosystem has been looking to expand further as stablecoins play a crucial role in implementing strategies at low fees.
By launching Djed, Cardano is entering the stablecoin market which is getting increasing competitive every single day. The Cardano-based stablecoin has been designed to ensure price stability through the reserves in ADA.
Initially, Cardano referred to Djed as an algorithmic stablecoin but dropped the wording considering all the negative sentiment around algorithmic stablecoins with the collapse of Terra’s UST last year. The COTI Network calls Djed as an overcollateralized stablecoin whose coverage in ADA is nearly four times that of the Djed issued.
Thus, the Cardano stablecoin has some similarities with the Tron ecosystem which also has its own overcollateralized stablecoin USDD. If the concept of Djed works out, it could provide a huge boost to the Cardano ecosystem. But for this to happen Djed must first past the field test.
Currently, Cardano’s native crypto ADA is trading at $0.35 with a market cap of $12.4 billion. It will be interesting to see whether the launch of Djed stablecoin can boost ADA price.