Djed algorithmic stablecoin of the Cardano blockchain is launched

Specialists from COTI Network, a company that develops decentralized payment systems and stablecoins, have announced a historic event — the launch of the algorithmic Djed stablecoin on the Cardano blockchain.

According to representatives of the Input Output team, the stablecoin is designed to be used in the DeFi protocols of the Cardano ecosystem as a «stable alternative to volatile cryptocurrencies.» Djed is 400−800% overcollateralized. «This means that it is backed by 4−8 times the base value than the total amount of Djed issued,» the company’s specialists emphasized.

Djed is LIVE!!!https://t.co/a9CWJtT4z4

Visit https://t.co/p7eV0jd400$DJED $SHEN $COTI @InputOutputHK @Cardano@Cardano_CF pic.twitter.com/9W7au8imrr

— COTI Foundation (@COTInetwork) January 31, 2023

The new digital asset is expected to be integrated into 40 programs of the Cardano ecosystem. Djed is already available on the decentralized exchanges MinSwap, Wingriders, and MuesliSwap. Obviously, Cardano founder Charles Hoskinson is pleased with the successful launch of the new project; in early December 2022, he called algorithmic stablecoins the «gold standard of the digital age.»

At the end of November, Emurgo, which operates as a separate official commercial arm of Cardano, announced plans to issue a centralized stablecoin. The cryptocurrency will be called USDA. «The introduction of a stablecoin that is fully backed by fiat currencies and compliant with regulatory requirements is the next step in realizing a cloudless future for the cryptocurrency community ,» said Vinit Bhuvanagiri, director of Emurgo Fintech.