Cardano’s stablecoin project may soon be officially introduced to the cryptoasset market. According to an announcement during the Cardano Summit, COTI has been the company chosen to issue Djed.
Designed to be used as payment for the Cardano network fee, Djed will allow more stably priced fees using smart contracts. In addition, the stablecoin should have an integration with the Decentralized Finance (DeFi) universe.
Djed’s project evolution announcement was presented by Cardano founder Charles Hoskinson last Sunday (28). In addition, Shahaf Bar-Geffen, CEO of COTI, attended the project announcement during the Cardano Summit.
Cardano will have stablecoins
Seeking to reduce fees and keep the network with greater price stability, Cardano will have a stablecoin. Called Djed, the project will integrate with the Cardano network and be used for fee payments.
With greater predictability of network fee costs, the community expects significant potential adoption of Cardano’s stablecoin.
Like most stablecoins, Djed will have the price pegged to another asset besides the dollar. According to a statement from IOHK, Cardano’s developer, the stablecoin will have a basket of fiat currencies.
In addition, Djed will maintain a system for burning other stablecoins to ensure Djed’s price stability. According to the developers of the project, the cryptoasset is “killer app”.
In a statement from the developer of Cardano, Shahaf Bar-Geffen commented that stablecoins had grown surprisingly fast in the market, with the adoption of cryptoassets as a form of payment.
“The stablecoin ecosystem has matured amazingly in recent years. Blockchain technology users use stablecoin for their daily transactions, regardless of where they are sent or received”.
COTI is chosen to issue Djed
Cardano developers have chosen COTI as the company responsible for issuing Djed, which still has no official market release date. In a statement, Charles Hoskinson, Cardano founder and CEO of IOHK, says that COTI has been developing projects for the Cardano ecosystem for years.
“COTI is a long-time partner in the Cardano ecosystem, and we are pleased to work with them on this new venture”.
Djedi is an effort by Cardano to stay updated in the face of the rise of DeFi projects in the market. In addition to a digital currency with stable pricing, Cardano recently launched its decentralized exchange (DEX), Cardax.
Commenting on Djed’s differential, Hoskinson said the stablecoin would have a mechanism that aims to combat the price volatility of cryptoassets in the market.
“Djed Stablecoin is a game-changer in the cryptoasset universe. It attracts a new audience when the industry is already experiencing extraordinary growth. Djed shares a commitment to formal verification and cryptography. Proving a robust method of combating price fluctuations in the asset market.”