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- COTI has announced that Cardano will unveil its stablecoin, Djed on the mainnet early next year. How will it impact the market?
Following a successful comprehensive audit, COTI has announced that in January of 2023, Djed, Cardano’s over-collateralized algorithmic stablecoin, will go live on mainnet. In order to facilitate its proper utilization, Djed will integrate into a selection of 40 partnerships formed after its mainnet launch with selected top partners and DEXs. If you give liquidity in the form of Djed, you can expect higher incentives from these DEXs.
The Djed rollout schedule and it will impact Cardano
Cardano has been extremely cautious in its release approach. It has ensured that it has conducted a comprehensive audit and other stringent stress testing before publishing on Mainnet. This is because security and stability remain everyone’s top priority, especially in light of the volatile market. In addition, Cardano will take a patient, methodical approach to adding $ADA liquidity to the Djed smart contract.
There will be three phases to the deployment schedule. Djed 1.1.1 (the bare bones version) will be released first in the new year. Included in the $ADA price is an upgrade to the oracle that allows it to use data from six external sources and compatibility with the Vasil hard fork. The initial release will function as a beta version with less liquidity. However, there will be improvements in subsequent releases.
Second, following the introduction of version 1.2, Djed will be utilizing the Vasil features, like a reference script, which will enhance its scalability. Finally, Djed 1.3 will be an updated version of Djed that will have variable pricing and fees. It will also support s taking, will which will significantly boost liquidity.
The value of $DJED is pegged to USD, with support from the base coin, $ADA, and the reserve currency, $SHEN. Their system relies on a collateral ratio between 400% and 800% for $DJED and $SHEN. This guarantees that there will be adequate $ADA available.
Djed is supported by COTI and is based on Cardano. Operating fees from Djed mint and burn transactions will be remitted to the COTI Treasury and redistributed among Treasury participants. That will give those in the COTI ecosystem an opportunity to profit from Djed’s success.