COTI, a software development company, has recently made an announcement regarding the issuance of the very first stablecoin developed to run on the Cardano (ADA) blockchain. The stablecoin is reportedly called Djed and the news was revealed by the leader of Cardano, Charles Hoskinson, and CEO of COTI Group, Shahaf Bar-Geffen at the Cardano Summit stage in Laramie, Wyoming.
It has been recently revealed that the Djed stablecoin is going to be launched on Cardano and will be promoting the growth of its nascent ecosystem, specifically now that the blockchain has started extending support to smart contracts.
Due to this factor, the crypto market has strong expectations about the possible development of Defi platforms on the Cardano blockchain.
There are various methods to attain this relationship and the most popular method is the holding or blocking of an amount of the reference asset that extends support to the issuance of a proportional amount of the correspondent stablecoin.
Talking about Djed, it has already been revealed that the value of Djed will be kept stable by an algorithmic design, which tends to leverage smart contract design on the Cardano blockchain to maintain a price as close as possible to attain the mark of $1.
In accordance with the whitepaper, there are going to be versions of Djed, a minimal one, designed exclusively to serve as a medium of exchange, and an extended one whose smart contract makes use of a continuous price structure and fees to react faster to external events.
The Chief Executive of COTI Group, Shahaf Bar-Geffen, said at the conference that the use of stablecoin like Djed will be allowing users to maintain greater control over their transactions. As said:
“Blockchain participants are using stablecoins to engage in everyday transactions because they allow monetary value to be exchanged in a seamless manner, regardless of the sender and recipient’s location. I believe that adding the Djed stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform.”
In addition to this, the official revelation said:
“The Djed stablecoin could be a game-changer in the crypto space, appealing to an entirely new audience at a time when the industry is already experiencing astronomical growth. COTI has been a long-time partner of the Cardano ecosystem. It’s great to have them on board with this new venture.”