- According to the COTI, DJED stablecoin had been in preparation, development, and security audit for over a year before its official introduction on the Cardano mainnet.
- COTI believes that this groundbreaking initiative marks a new era for stablecoins.
Cardano is expected to react heavily to the increase in activities of Decentralized Applications on its network. Today, the Ethereum competitor has received another boost as COTI, a DAG-based Layer-1 protocol and official issuer of the stablecoin, announces the launch of DJED on its mainnet. According to the company, DJED stablecoin had been in preparation, development, and security audit for over a year before its official introduction on the Cardano mainnet. COTI believes that this groundbreaking initiative marks a new era for stablecoins.
Djed is LIVE!!!https://t.co/a9CWJtT4z4
Visit https://t.co/p7eV0jd400$DJED $SHEN $COTI @InputOutputHK @Cardano@Cardano_CF pic.twitter.com/9W7au8imrr
— COTI (@COTInetwork) January 31, 2023
Having studied the market to offset the prevailing challenges, the asset has been designed as a unique proof of reserve to stabilize and protect its value amid any possible market situation. DJED has been overcollateralized by 400 percent to 800 percent.
After over a year of preparations and development, and following a successful security audit, we are very proud to announce that Djed, the overcollateralized stablecoin on Cardano, is now live on mainnet.
The stablecoin uses SHEN as its reserve coin while backed by ADA as its base coin. It is also pegged by the US dollar. It is worth noting that the protocol will cease the burning of SHEN and the minting of new DJED if the reserve ratio goes below 400 percent. In situations where the reserve ratio goes beyond 800 percent, users would not be able to mint more SHEN. Rather, they would be allowed to mint and burn arithmetic stablecoin when the reserve ratio surpasses 800 percent.
Cardano network receives huge boost
The arithmetic stablecoin is also expected to unlock new opportunities for the Cardano ecosystem, Payments, Decentralized Finance, etc. The project has been massively received with over entities partnering with COTI to adopt DJED. COTI and DJED can currently be accessed on Cardano-based decentralized exchanges such as WingRiders, MinSwap, and MuesliSwap. Reports also mention that Bitrue is set to be the first crypto exchange to list both SHEN and DJED.
COTI also disclosed to be working on other projects:
We started the chain index syncing process. This process may take 14 days, and as we started the sync a week ago, we expect to complete it next week and be ready to launch. As of right now, this is the only technical bottleneck holding up the launch.
According to them, they have made an effort to stake the ADA deposited to the Djed smart contract to generate extra awards to $SHEN holders. As part of this effort, they are developing a snapshot mechanism and UI. This will be added to the djed.xyz. In this case, $SHEN holders can effectively track their rewards.
We have added the ability to cancel an order. Users will be able to click on the “refund button” and their transaction will be canceled (as long as it hasn’t been processed).
The launch of DJED has triggered excitement among the Cardano communities as they expect this to boost Defi activities on the network.
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ADA has reacted to this announcement with a 2.8 percent surge in the last 24 hours. The asset is currently trading at $0.39.
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