In a recent tweet, Cardano founder Charles Hoskinson indicated the development achieved on the Djed stablecoin building in Cardano. Djed, a Cardano decentralised algorithmic stablecoin designed by IOG and issued by COTI, was just released on the public testnet. This, according to Cardano founder Charles Hoskinson, is a significant milestone for algorithmic stablecoins.
Following the UST collapse, the Cardano founder took a shot at Terra. After losing its peg, Terra’s algorithmic stablecoin, UST, went on a rapid decline to $0.26 on May 11. Terra’s native asset, LUNA, has also dropped about 93% as a result of the incident, which has reinforced bad sentiment among Terra investors.
Hoskinson wanted to know how SigUSD, an algorithmic stablecoin based on the AgeUSD protocol, was doing. The Ergo Foundation, IOHK media, and Emurgo, Cardano’s commercial arm, collaborated on the AgeUSD protocol. “Protodjed is looking fantastic,” the IOHK CEO said in response to SigUSD reports.
Because price stability is built into the assets themselves, stablecoins are critical for crypto marketplaces. This opens up a lot of possibilities for DeFi and value transfer without having to worry about price changes. They achieve price stability through the underlying collateral.
Djed, the emblem of “stability” in ancient Egypt and the symbolic backbone of the god Osiris, the god of the afterlife and resurrection, is the name of Cardano’s algorithmic stablecoin.
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