A new stablecoin will soon be launched on the Cardano blockchain. This stablecoin will be a tool for DeFi operations. In addition, it will ensure that users have to pay fewer transaction costs.
The new ‘Djed’ stablecoin
Cardano’s payment provider Coti will be the official publisher of the new DeFi stablecoin called ‘Djed’ that will run on the Cardano network. Cardano founder Charles Hoskinson and Coti CEO Shahaf Bar-Geffen announced this on September 26 at the Cardano Summit.
The new stablecoin will be based on algorithmic design, using smart contracts to ensure price stability and provide a tool for DeFi transactions. The stablecoin is designed for paying transaction fees on the Cardano network to avoid excessive transaction fees and make fees more predictable.
According to the stablecoin’s research paper, released in August, the protocol will act as an autonomous bank that buys and sells stablecoins at a price in a range tied to a target price. The stablecoin works by holding a reserve of base coins while several other stable assets and reserve coins are minted and destroyed (burned).
According to Hoskinson, the Djed stablecoin could be a game-changer in the crypto world, as it appeals to a whole new audience at a time when the industry is already experiencing astronomical growth.
The news comes shortly after Coti teamed up with Cardano’s stablecoin hub Ardana to bring decentralized stablecoin payments to AdaPay. AdaPay is a Cardano payment gateway that supports over 30 fiat currencies.