A new stablecoin is arriving on the Cardano blockchain as Cardano founder, Charles Hoskinson announced COTI as its partner to be the official issuer of ‘Djed,’ a new DeFi-focused stablecoin for the Cardano network.
The announcement was made at the 2021 Cardano summit event alongside COTI CEO, Shahaf Bar-Geffen on Sunday.
Djed will be used on the Cardano blockchain as a tool for decentralized finance (DeFi) operations and avoid transaction fees. It will be based on an algorithmic design using smart contracts to ensure price stability and providing an instrument for DeFi transactions. The stablecoin is designed for paying transaction fees on the Cardano network in order to avoid “volatile and exorbitant gas fees” and make transaction costs “more predictable.”
According to Djed’s research paper, its stablecoin protocol will behave like an “autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.” The stablecoin will operate by maintaining a reserve of base coins while minting and burning various other stable assets and reserve coins.
According to Charles Hoskinson, the Djed stablecoin could be a game-changer in the crypto industry as it appeals to an “entirely new audience at a time when the industry is already experiencing astronomical growth.”
The news comes shortly after COTI partnered with Cardano’s stablecoin hub, Ardana, to bring decentralized stablecoin payments to AdaPay, a Cardano (ADA) payment gateway supporting over 30 fiat currencies.
Recall that Cardano just recently launched an Alonzo hard fork mainnet upgrade. The upgrade brought to the Cardano network the capability to launch smart contracts, ushering in a new era for the blockchain which puts it in direct competition with the likes of Ethereum and Solana.
Since the launch of Smart Contracts, over 200 smart contracts have been listed on the Cardano blockchain explorer.
COTI’s token price hit an all-time high (ATH) of 67 cents just 2 days ago, before the announcement of the partnership. The token is currently trading 57 cents up 3.21% for the day. Cardano’s native token ADA is currently down 2.48% as it currently trades $2.20 per coin.
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Also at the 2021 Cardano Summit, Cardano announced a partnership with Chainlink aimed at providing extra support for developers building smart contracts on the Cardano blockchain by integrating oracles.
Chris Ergen, the head of Innovation at Dish Network, recently announced that Cardano was partnering with Dish to build blockchain services and to make blockchain a core part of our network and consumer strategy.