New Stable coin Is In The Making From Cardano in 2023!

Despite the crypto winter which has been prevalent for the crypto community in 2022, many historic events took place for some of the most well known crypto networks! Starting from the infamous Ethereum Merge, to Cardano's Vasil Hard fork, to Solana coming out with their phones! With so much happening around the FTX incident that almost shook the crypto community along with many VCs, the matter is moving ahead with their solving-the-problem strategies and we have newer updates from various projects coming in.

Cardano is coming out with a new stablecoin in 2023!

The proof of stake blockchain platform, Cardano, has joined hands with COTI, a DAG-based Layer 1 protocol to work on a new stablecoin project. They are looking forward to launching what it refers to as an over-collateralized algorithmic stablecoin. According to the announcement provided to Cointelegraph, the project said that the stablecoin will be backed by excess collateral in the form of crypto stored in a reserve.

The stablecoin is named Djed. According to Cardanocube, it is a stablecoin, based on algorithmic design. It uses smart contracts to ensure price stabilization, and the coin will be useful for decentralized finance (DeFi) operations. It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins. Djed operates by maintaining a reserve of base coins while minting and burning various other stable assets and reserve coins. It is designed to be used for paying transaction fees on the Cardano network. One benefit of this is to make transaction costs more predictable, so avoiding volatile and exorbitant gas fees for users.