Cardano is all geared up to launch an algorithmic stablecoin in 2023, that will be backed by crypto collateral in excess. The proof-of-work (PoW) blockchain has teamed up with COTI to launch this ‘over collateralised’ stablecoin. COTI is a Layer 1 protocol, that would provide the base blockchain infrastructure. The name of this stablecoin has been decided as ‘Djed’ and it is estimated to go live on the mainnet provided by COTI around January 2023.
Launched in 2017, the Cardano blockchain can be used to create smart contracts, decentralised applications, and protocols. Its native ADA cryptocurrency ranks eighth on CoinMarketCap, with the current market cap of $10.3 billion (roughly Rs. 84,888 crore).
Before Djed goes live, it will have to clear a bunch of technically rigorous stress checks and tests. The stablecoin will be pegged to the US dollar. It will use the ADA and SHEN as the reserve cryptocurrencies.
The stablecoin will be integrated with select partners and decentralised exchanges (DEXs). This will reward its users for offering liquidity via Djed.
“Recent market events have proven again that we need a safe haven from volatility, and Djed will serve as this safe haven in the Cardano network. Not only do we need a stablecoin, but we need one that is decentralised, and has on chain proof of reserves,” a CoinMarketCap report quoted COTI CEO Shahaf Bar-Geffen as saying.
In September 2022, Cardano’s Vasil upgrade finally went live. The hard fork was designed to help improve the ecosystem’s scalability and general transaction throughput capacity.
As it stands today, Cardano already has made significant progress. More than 3,200 Plutus (the native smart contract language used on Cardano) scripts exist on the blockchain.
The blockchain has processed a total of more than 50 million transactions and developers are building 1,100 projects using the blockchain.