Cardano code maintainer IOG and Layer-1 blockchain Coti have announced a stablecoin launch.
Per the announcement, the decentralized stablecoin Djed is set to launch the first week of February 2023. The stablecoin, which is based on the Cardano blockchain, has been jointly developed by the two companies. Additionally, the coin will be backed by other tokens.
According to the statement, the stablecoin, Djed, has an overcollateralized mechanism. The mechanism requires more than 400% of collateral value to be posted before it is issued to a user.
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This allows the token’s value to hold stably during market stress. Further, it prevents repeating a similar situation Terra USD experienced last year, falling over 99% in value.
The development team behind Djed has also announced that holders of the reserve token SHEN will receive extra rewards. The bonuses will be acquired by SHEN holders when the Cardano (ADA) holders stake their ADA coins to mint Djed stablecoins.
The team also noted that there will be a snapshot mechanism.
<…> we are developing a snapshot mechanism and UI that will be added to djed.xyz, where $SHEN holders will be able to track these extra rewards.
In addition to the launch of the stablecoin, a payment application will be also available for users. Developers revealed that customers will be able to transfer the tokens to merchants and businesses using an app called DjedPay.
Upon launch, Djed is expected to go live on over 40 Cardano-based decentralized finance (DeFi) applications.
The news of Djed’s launch has been met with excitement, with Bitrue announcing that they will list $DJED and $SHEN on their exchange platform.
According to the development team, the launch of Djed is expected to bring even more growth and adoption to the Cardano ecosystem. Currently, the Cardano dApp ecosystem locks up over $72 million worth of tokens.
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