A new stablecoin is expected to arrive on the Cardano blockchain to offer a dependable tool for decentralized finance (DeFi) operations and avoid hefty transaction fees. Reports indicate that Coti, Cardano’s payment gateway provider, will operate as the official issuer of Djed.
Djed is a new DeFi-focused stablecoin for the Cardano network. Coti CEO Shahaf Bar-Geffen and Cardano founder Charles Hoskinson made this announcement on September 26 at the Cardano Summit. Coti previously partnered with Cardano’s stablecoin hub Ardana to bring some decentralized stablecoin payments to AdaPay.
This new stablecoin is based on algorithmic design, utilizing smart contracts to guarantee price stability and offering an instrument for decentralized finance (DeFi) transactions. The stablecoin is designed for paying all transaction fees on the Cardano network to avoid “volatile and exorbitant gas fees” and in the process make transaction costs more predictable.
Based on Djed’s research paper released in August 2021, its stablecoin protocol will behave like an:
“autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.”
The stablecoin is designed to operate by maintaining a reserve of base coins, while burning and minting a variety of other reserve coins and stable assets. Hoskinson believes that the Djed stablecoin might be the needed game-changer in the crypto sector as it appeals to:
“an entirely new audience at a time when the industry is already experiencing astronomical growth.”
This news comes moments after Coti partnered with Cardano’s stablecoin hub Ardana to introduce decentralized stablecoin payments to AdaPay. AdaPay is a Cardano (ADA) payment platform that supports more than 30 fiat currencies.