Cardano, a blockchain platform that depends on proof-of-stake, has entered into a partnership with COTI, a DAG-based Layer 1 protocol, in order to create what it describes as an “over-collateralized algorithmic stablecoin.”
A statement on the project was made available on multiple sources, in which it was said that the stablecoin would be backed by surplus collateral in the form of cryptocurrency that is maintained in a reserve.
The press announcement states that Djed is scheduled to go live on the mainnet in January 2023, provided that the audit and the sequence of rigorous stress tests are passed with flying colors. The creators have said that the Djed will have a fixed exchange rate to the US dollar, will have the backing of Cardano ($ADA), and will use Shen as its reserve currency.
The algorithmic stablecoin will be integrated with chosen partners and decentralised exchanges (DEXs), which will reward users for providing liquidity using Djed and will also be integrated with the algorithmic stablecoin. The developers want to take a step-by-step, methodical approach to the process of giving $ADA liquidity to the Djed smart contract in an effort to achieve growth that is both sustainably healthy and rapid.
The blockchain continues to expand and evolve within the ecosystem, even if Cardano’s price action hasn’t been very impressive. Cardano’s much-anticipated Vasil update was finally made available to users on September 22.
The hard fork was created with the intention of assisting in the improvement of the scalability of the ecosystem as well as the general transaction throughput capacity, in addition to advancing Cardano’s capacity for the creation of decentralised applications (DApps). Cardano had a market price of $0.30 at the time this article was written.
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