This time the Cardano Stablecoin DJED is being launched! Cardano announces the launch of its stablecoin in January 2023. To avoid failure, it relies on new technologies. DJED, a stablecoin, has been approved.
Coti CEO Shahaf Bar-Gffen has announced the launch date for Cardano’s new stablecoin algorithm.
This news came during a conference held on Monday, November 21. According to the official site, the logo will go live in January 2023 after a thorough review. This token is an over-paid coin that supports excess in the form of a secured digital asset.
The failure of Terra Luna stablecoin, UST, is due to illegal assets, and to avoid such a failure, Cardano comes with an illegal deposit. Here is an overview of Cardano and Coti’s stablecoin, DJED.
What is DJED? The cryptocurrency of the Cardano network is called ADA and this DJED stablecoin will support it. But how? When a user sends ADA to a given smart contract chain, they receive DJED in return.
If you send ADA worth $1, you will get DJED worth $1. “Djed considers the good in crypto as a contract, which means that there is no fiat in the system, and also takes over-collateralization very much,” said Coti CEO Shahaf. Bar-Geffen.
But what if ADA fails?
The answer is that DJED will also fail if ADA fails because of the support system. However, the company has another reason for this. If the ADA fails, it will be supported by a reserve fund called SHEN, to cover the cost of the ADA. The money is invested in the same smart contract. This system ensures price stability and guarantees a contract price of 400 to 800%. Also, SHEN does not assign a price, it is open to change. However, once the smart contract reaches its limit, it will prevent anyone from creating new SHEN tokens to avoid the lock-in. To add more flavor to the service, DJED will integrate with 40 apps in the Cardano ecosystem and a new service that DjedPay will introduce to help customers and other crypto readers accept Djed payments.
Why is DJED important?
Bar-Geffen emphasized the importance of launching Djed, noting that the collaborative efforts of COTI and Input Output Global (IOG) contributed to the development of the stablecoin.
“Recent market events have shown once again that we need a refuge from change, and Djed will serve as a safe haven in the Cardano network. Not only do we need a stablecoin, but we need one that is indivisible and has a proof-of-concept that protects its contents,” said Bar-Geffen.
How do you know if your money is bad?
After the crash of FTX and Terra Luna, it took time for many blockchains to share the evidence to regain the trust of investors and users. Major cryptocurrency exchanges such as Binance and Bitstamp have announced that they are sharing their proof of deposit to gain customer trust. Many other exchanges such as Grayscale refuse to share proof of deposit for security reasons. Bar-Gaffen’s support in sharing evidence shows market impact. If stablecoins are to survive, they must provide enough storage to satisfy regular token purchases. These feelings of war and trust arose when the UST and Luna signs collapsed in May 2022.
USDT, USDC, and BUSD are three stablecoins and all are backed by US funds and assets. The information was made available to the public through these three coins.
Final Thoughts
The UST crash took billions of dollars out of the market and people lost a lot of assets besides trust in stablecoins. However, Cardano stablecoin can become a better and more promising alternative than many other coins. On paper, it looks promising because of its large format. It could be the next big thing in the crypto market.
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