Cardano’s stablecoin Djed to go live in January, 2023
“Recent market events have proven again that we need a safe haven from volatility, and Djed will serve as this safe 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.”
COTI has announced the upcoming launch of Djed, an over-collateralized algorithmic stablecoin built on Cardano and powered by COTI. Djed will be live on mainnet this January, 2023 following a successful full audit.
Djed will then be integrated with selected top partners and DEXs out of the 40 partnerships signed, to enable its proper utilization. These DEXs will offer increased rewards to those who will provide liquidity using Djed.
$DJED is pegged to USD, backed by the base coin $ADA, and uses $SHEN as its reserve coin. The algorithm is based on a collateral ratio within the range of 400%-800% for $DJED and $SHEN in order to ensure there’s enough $ADA in the pool.
The crypto winter has reminded everyone within the digital asset ecosystem that security and stability must be the top priority at all times. Djed is being released very prudently to make sure a thorough audit takes place as well as other rigorous stress tests prior to launching on Mainnet.
In addition, COTI will adopt a gradual and slow approach to providing $ADA liquidity to the Djed smart contract, to ensure consistent and careful growth.
Djed, a decentralized stablecoin with on chain proof of reserves
Shahaf Bar-Geffen, Chief Executive Officer at COTI, said: “Djed going to public mainnet is a great achievement, following a lot of hard work from IOG and COTI. Recent market events have proven again that we need a safe haven from volatility, and Djed will serve as this safe 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. Djed is just that and I see it becoming the top stablecoin on the Cardano network, considering all of the integration partnerships already signed for it.”
COTI ecosystem participants will have the chance to share in the operating fees from Djed’s mint and burn transactions, which will be sent to COTI’s Treasury and distributed to the Treasury participants.
COTI has set the following milestones for development in 2023:
- Djed 1.1.1 version (minimal Djed) will be launched in January, and will include Vasil hard fork compatibility, and the upgrade of the oracle to support 6 external sources for the $ADA price. This version will be launched as a beta version with a limited amount of liquidity that will be increased in future versions.
- Version 1.2 will be released after, by then, Djed will be using the Vasil features including a reference script which will increase its scalability.
- Djed 1.3 is the extended Djed version that will introduce dynamic fees and prices. In addition, staking will be supported, resulting in significant liquidity provision.
Djed is an algorithmic, Cardano-based stablecoin protocol that behaves like an autonomous bank, buying and selling for a price in a range that’s pegged to a target price. Through these smart contract-based mechanisms, Djed ensures price stabilization, making it especially promising in decentralized finance operations. The algorithm works by operating a reserve base of coins, minting and burning tokens as necessary to ensure price stability.