The Djed stablecoin has been launched on Cardano

We reported about it regularly in the past month; the highly anticipated launch of Djed, the algorithmic stablecoin for the Cardano (ADA) network. This week it’s finally here. Djed was successfully launched by Coti, a DeFi service provider on Cardano. However, the term ‘algorithmic stablecoin’ sounds alarm bells among many crypto fanatics.

What is Djed?

Djed (DJED) is an algorithmic stablecoin linked one-to-one to the dollar. The underlying value is ADA. Over the past year, developers at Coti have been working hard on Djed, and after a successful safety audit, all lights are green. Djed has to compete with established names such as USDT, USDC and BUSD.

The difference between the above and Djed is that Djed is only covered by ADA. The link with the dollar must be maintained algorithmically without collateral from other crypto, assets or the dollar itself. Let the last project that tried this be Terra (LUNA), the crypto project that imploded last summer, shaking the entire crypto sector to its foundations.

The Terra fiasco hasn’t stopped Djed’s developers. Now it’s up to Djed to prove that it won’t follow in LUNA’s footsteps. One of the mechanisms to ensure that this does not happen is Djed’s cover. Djed is covered for no less than 400%. This means that for every DJED token there is four dollars of underlying value.

Cardano is doing great

The launch of Djed on the Cardano network is one of many developments currently active on the network. This week Charles Hoskinson, the founder of Cardano, said that things are moving so fast right now that it’s hard to keep up. According to him, all developments will follow quickly with increased activity on the network.

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Hoskinson is sometimes criticized for his nice talk about his crypto child. This while Cardano shows little activity according to many. However, a recent survey by DappRadar showed that Cardano is making terrible progress in terms of development. The survey revealed Ethereum (ETH) as the blockchain with the most active developers. Cardano followed closely behind.

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