Djed, Cardano’s over-collateralized algorithmic stablecoin, will be live on mainnet in January 2023 following a successful full audit. The scheduled launch is a great milestone coming days after Shahaf Bar-Geffen’s announcement about the stablecoin on the main stage at the Cardano Summit.
Making the announcement, COTI’s CEO Shahaf Bar-Geffen said:
“Djed going to public mainnet is a great achievement, following a lot of hard work from IOG and COTI. Recent market events have demonstrated that we need a safe place to avoid volatility. Djed will provide this safe haven in Cardano’s network. We need a stablecoin that is not only decentralized but also has on-chain proof reserves. Djed is just that and I see it becoming the top stablecoin on the Cardano network, considering all of the integration partnerships already signed for it.”
Cardano continues to be prudent as the launch draws near
Cardano assured investors following the Terra LUNA collapse that was caused by the de-pegging their native algorithmic stablecoin Terra USD, (UST), that they had been extremely prudent in how they approached the release of their stablecoin. They had to ensure that the stablecoin was subject to a rigorous audit and that it passed all stress tests prior to its launch on the mainnet.
Cardano stated that it will be providing ADA liquidity to Djed smart contract in a slow and gradual manner. Cardano can take their time and grow the stablecoin.
To allow for greater use cases, the Djed will be integrated with selected top Cardano partner companies once it’s launched.
Djed stablecoin features
Djed ($DJED) is an over-collateralized algorithmic stablecoin, built on Cardano and powered by COTI. It will be pegged at USD and backed with ADA.
It will use SHEN for its reserve currency.
$DJED’s algorithm is based on a collateral ratio within the range of 400%-800% for $DJED and $SHEN in order to ensure there’s enough $ADA in the pool.