Cardano (ADA) to Launch Algorithmic Stablecoin in Early

Cardano (ADA) to Launch Algorithmic Stablecoin in Early 2023

Cardano (ADA) is set to unveil its first algorithmic stablecoin, Djed, and integrate it with 40 applications within the Cardano ecosystem starting January next year.

Djed: Cardano's First Algorithmic Stablecoin

Djed, Cardano's inaugural algorithmic stablecoin, is expected to go live on the mainnet in early 2023, as announced by the development team at the Cardano Summit in Lausanne, Switzerland.

According to the announcement, Djed will be a USD-pegged algorithmic stablecoin, over-collateralized with ADA (similar to DAI) and backed by the reserve token SHEN. Each Djed will be backed by 400% of assets. To mint Djed, users will need to collateralize ADA.

Developed over the past year by Coti in collaboration with Cardano's Input Output Global, Djed will gradually be integrated with partners and decentralized exchanges (DEXs) in the future. Users will be rewarded with Djed for contributing liquidity to the stablecoin.

Coti CEO Shahaf Bar-Geffen commented at the conference:

"Recent events have once again proven that we need a safe haven from volatility, and Djed is exactly what people need on the Cardano network. We don’t just need a stablecoin; we need a decentralized stablecoin with on-chain proof of reserves.

Djed brings together the best of both worlds, using cryptocurrency as over-collateralized assets without reliance on fiat."

Djed will be integrated into 40 applications across the Cardano ecosystem. Additionally, DjedPay—a service for making payments with Djed—will also launch concurrently.

Following the announcement, ADA's price saw a slight increase of 1.82% over the past 24 hours and is currently trading around $0.3073.

1-Hour Chart of ADA/USDT on Binance as of 10:30 AM on 11/22/2022

Cardano continues to innovate and evolve. On September 23rd, the long-awaited Vasil upgrade was successfully activated. This hard fork is designed to enhance scalability, transaction throughput, and the development capacity for decentralized applications (dApps) on Cardano.

In addition to Djed, Cardano will also launch USDA in early 2023, a stablecoin specifically designed for the ADA ecosystem, fully backed and licensed by regulators. Furthermore, the project is exploring the potential launch of new blockchain and token initiatives, aimed at ensuring privacy while allowing access for regulatory oversight and auditing.