Cardano’s algorithmic stablecoin DJED powered by COTI is finally live on the mainnet following a year and a half of development.
According to the blog post, the launch of the community-driven token commences a new era for stablecoins and is touted to be a “significant milestone” for ADA’s DeFi ecosystem.
Besides that, the decentralized open-source protocol also aims to provide an opportunity for users to hold, mint, and burn DJED and its reserve coin SHEN.
Further, Djed also intends to act as a stable alternative to volatile cryptocurrencies furthering its use cases on the DeFi protocols in the Cardano ecosystem.
Each stablecoin will be over-collateralized by 400-800% with Cardano’s native asset ADA — while using SHEN as a reserve coin. This over-collateralization makes it similar to the dai stablecoin in the Ethereum ecosystem, but it has a minting and burning mechanism like other algorithmic stablecoins.
Within the Cardano ecosystem, Djed is anticipated to be incorporated into 40 applications. Decentralized exchanges [DEXes] likeWingriders, MuesliSwap, and MinSwap have already endorsed it.
In addition to these top platforms in the Cardano ecosystem, Bitrue will be the first exchange to list DJED and SHEN, in accordance with the blog post.
DJED’s official backer, Coti disclosed plans to launch DjedPay, a service that will enable merchants and other crypto players to accept payments in the stablecoin. This was announced in an interview with a leading media outlet, back in November.
That said, the much-awaited launch was marred with technical snags that delayed its launch by several dates.
As reported by TronWeekly, the so-called chain index syncing process, was the only “technical bottleneck” holding up the launch at the moment.
The abovementioned process typically takes a total of 14 days and was initiated over a week back, according to the COTI Network. This led to speculation that the launch might be deployed around February 1.
Cardano’s latest update is in a long line of upgrades that have fueled hope for the ADA community which is anticipating a turnaround in the asset’s price action.
Cardano’s DJED Has Gained Investor’s Attention
ADA continued to gain traction towards month’s end after an epic rise of over 50% since the start of the year. The altcoin, which ranks eighth by market capitalization, topped $0.3990 at one point this weekend before recoiling.
The latest launch has created a lot of buzz as it intends to bring greater usability to the stablecoin landscape and make transaction costs more predictable.