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 proven again that we need a safe haven from volatility, and Djed will serve as this safe haven in the Cardano network. Not only do we need a stablecoin, but we need one that is decentralized, and has on-chain proof of 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 remains prudent as the launch approaches
Following the Terra LUNA crash that resulted from the de-pegging of their native algorithmic stablecoin Terra USD (UST), Cardano has assured investors that they have been very prudent in the way they approach the release of their stablecoin. One of the things that they have had to do is ensure that a thorough audit took place besides other rigorous stress tests before the stablecoin is launched on the mainnet.
Cardano has also said that it will adopt a gradual and slow approach to providing ADA liquidity to the Djed smart contract. This will allow Cardano to pace themselves and carefully grow the stablecoin.
Once the Djed is launched, it will be integrated with select top Cardano partners to allow for more use cases.
Djed stablecoin features
Djed ($DJED) is an over-collateralized algorithmic stablecoin, built on Cardano and powered by COTI. It will be pegged to USD and backed by ADA.
It will use SHEN as its reserve coin.
$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.