Announced since the end of 2021, the Djed is one of the flagship projects of the Cardano blockchain. It is a decentralized algorithmic stablecoin built by the company IOG (Input Output Global), the main developer of the blockchain. Its issuance will be due to COTI Network, the world’s first blockchain protocol specifically optimized for decentralized payments. According to the developers of the stablecoin, its arrival will meet the demand for crypto solutions, not subject to the realities of volatility. Last November, the developers mentioned the January 2023 date for the launch of Djed. What about the effectiveness of this calendar?
The stablecoin Djed will be available from January 2023
The long-awaited algorithmic stablecoin Djed, will be ready from next January. The information has been confirmed by Shahaf Bar-Geffen, the Director of COTI Network, in an interview published on Learn Cardano.
The Djed is one of the most important projects in Charles Hoskinson’s ecosystem. It will be added to the existing stablecoin projects on Cardano that are LiqwidX and ADADAO.
Algorithmic stablecoins guarantee price stability and a balanced supply of tokens in circulation. This, by attaching itself to a reserve asset. With the Djed, the reserve asset is the Shen. Thus, thanks to the Shen, fluctuations in the price of ADA will be compensated by the fact that the Shen covers the deficits and guarantees the collateralisation rate.
A secure stablecoin?
Asked about the delay in launching Djed, Bar-Geffen noted the need to ensure security for users. For this, he explained that the team behind the project wanted to make sure that Djed integrates with Cardano’s Vasil hard fork. He added that the audits also delayed the launch. The COTI Network boss assured that the developers have conducted rigorous audits to test the security of the stablecoin smart contract.
“One thing we cannot fail on is safety. If people aren’t interested in the product, I can live with that. I can’t live with leaving security holes in the code without doing everything possible to ensure optimal security”did he declare.
Either way, Cardano teams are confident about the adoption potential of Djed. COTI has already partnered with several decentralized financial protocols from Cardano to integrate the stablecoin upon launch.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
