Djed, a Decentralized Stablecoin Based on Cardano, Will Enter Mainnet in January

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Last Updated on November 22, 2022 by Bitfinsider

In January, Djed, Cardano’s first decentralized stablecoin, will launch on the main network.

The developers made the announcement during the Cardano Summit in Lausanne, Switzerland. Djed is a decentralized, dollar-pegged stablecoin that will exist on the Cardano Layer 1 network.

Coti, in partnership with Cardano’s primary developer Input Output, has created Djed, a cryptocurrency backed by crypto assets rather than fiat currency.

More than a year has been spent developing the stablecoin. Once the stablecoin is introduced, Cardano users will be able to use ADA, the network’s native cryptocurrency, as collateral to mint the stablecoin.

The stablecoin is supposed to be overcollateralized, meaning that it is supported by a reserve of cryptocurrency. This architecture is comparable to that of dai, the most popular decentralized stablecoin in the Ethereum ecosystem. To mint a Djed, more than 400% in collateral must be provided.

The CEO of Coti, Shahaf Bar-Geffen, told The Block that Djed takes over-collaterization extremely seriously. “Djed takes what’s excellent about crypto as collateral, which is that there is no currency in the system, but also takes over-collaterization very seriously.”

Bar-Geffen stated that upon debut, Djed will be incorporated into forty Cardano ecosystem applications. DjedPay, a service that enables retailers and other crypto players to accept Djed payments, will also be introduced in conjunction with the launch.

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