Cardano to launch stablecoin in January 2023
Shahaf Bar-Geffen, CEO of stablecoin development company COTI announced the launch date of Cardano’s new algorithmic stablecoin at the Cardano Summit on Nov. 21.
The stablecoin Djed will go live in January 2023 pending a successful audit and stress tests.
Djed will be pegged to the US dollar and backed by ADA ($ADA), Cardano’s native cryptocurrency. The reserves will be held in $SHEN. Users will be rewarded monetarily every time someone exchanges $Djed or $SHEN for $ADA or vice versa, giving users the incentive to hold SHEN and maintain the stablecoin peg.
ADA liquidity will be slowly injected into the Djed smart contract to protect the balance of collateralization from volatility spikes.
Shahaf Bar-Geffen, the CEO of COTI shared at the official announcement at the Cardano Summit, ‘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.’
After the mainnet launch, Djed will be deployed into over 40 decentralized exchanges, protocols and on-chain lending and collateralization platforms.
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