The Cardano-based over-collateralized algorithmically-backed stablecoin Djed is slated to launch next week developed in partnership with the enterprise-grade fintech platform COTI network.Â
Shahaf Bar-Geffen, CEO of the COTI Network, stated Djed merges the idea of over-collateralization and algorithms into one powerful stablecoin.
In exchange for $DJED, the native token of Cardano $ADA is sent to the stablecoin smart contract. When $ADA prices fluctuate, a third token called $SHEN serves as the balance. As a result, $ADA will be used to over-collateralize the stablecoin.
COTI noted last week that Djed will be more than 400% overcollateralized. This indicates that it will have 4 times more underlying value than the whole amount of Djed ever minted.
Leading Cardano DEX Minswap just revealed a few pools for Djed. Djed’s DEX partner Wingriders also made a hint that an announcement would soon be made.
$DJED and its reserve coin $SHEN would be listed on the Bitrue exchange, according to COTI. The network also disclosed the creation of a snapshot mechanism and user interface for tracking rewards.
“As part of our effort to stake the ADA that is deposited to the Djed smart contract and generate extra rewards for $SHEN holders, we are developing a snapshot mechanism and UI that will be added to djed.xyz, where $SHEN holders will be able to track these extra rewards,” COTI stated.
COTI started the chain index syncing process for Djed a week ago, and as the process may take 14 days, it is expected to complete next week and be ready to launch.
In September 2021, COTI announced it will be the official issuer of its Djed stablecoin for Cardano. Djed is not the only stablecoin Cradano is planning to launch this year.
Last November, it was revealed that the Cardano stablecoin USDA is set to launch in early 2023. In Q1 2023, USDA is anticipated to go live on the Anzens platform, allowing users to tokenize their USD into USDA using credit or debit cards, wire transfers, ACH transfers, or conversions of ADA.Â
