Ethereum competitor Cardano (ADA) has teamed up with blockchain payments ecosystem COTI to launch a new algorithmic stablecoin.
In a new blog post, COTI says that Djed, the first-ever algorithmic stablecoin built on the smart contract platform, has gone live on its public testnet.
“We are excited to announce that after months of intense work along with the Cardano team, the public testnet version of Djed is now released!
Djed is a decentralized, algorithmic stablecoin that is built on Cardano. An algorithmic stablecoin maintains stability through a combination of collateral and a reserve token.
In this case, Shen is Djed’s reserve coin and has the role of ensuring price stability – specifically it guarantees the collateralization rate and the peg of the stablecoin.”
According to COTI, the testnet will serve as a way to ensure that Djed and Shen are both technically sound, stable, secure and redeemable after protocol upgrades. COTI says that the Djed mainnet is slated to launch sometime in June of this year.
Cardano creator and Input Output Hong Kong (IOHK) CEO Charles Hoskinson first announced Djed as a project last July. He said that the plan was to eventually incorporate the stablecoin into Plutus, ADA’s smart contract protocol.
“One of the things we’re doing with this stablecoin [project] – after we clean it up a little bit more, because it’s so involved and there are so many moving pieces to it that have to be carefully thought about – is actually implementing it into Plutus as a Plutus native application.”
Cardano is changing hands at $0.783 at time of writing, a 13% decrease from its seven-day peak of $0.897.
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