Many cryptocurrency community members have become weary of stablecoins since the collapse of the TerraUSD in May 2022. Since its peak just before Terra’s collapse, the market for algorithmic stablecoins has dropped 10x.
Nonetheless, on January 31st, the overcollateralised stablecoin for the Cardano ecosystem will be released by the network’s creators. Djed (DJED), a new algorithmic stablecoin on the Cardano mainnet, is backed by ADA and tied to the US dollar. The Shen (SHEN) token is the secondary medium of exchange.
Djed is LIVE!!!https://t.co/a9CWJtT4z4
Visit https://t.co/p7eV0jd400$DJED $SHEN $COTI @InputOutputHK @Cardano@Cardano_CF pic.twitter.com/9W7au8imrr
— COTI (@COTInetwork) January 31, 2023
The new coin was claimed to have been in development for over a year and recently passed a security examination. Coti, a provider of DeFi solutions built on the Cardano blockchain, has created DJED as a method of expanding the potential applications of that network.
Some rumours spread before the introduction of the new Cardano stablecoin owing to the prospect of bringing into life another algorithmic stablecoin.
One of the recent developments on the Cardano network, this follows Charles Hoskinson’s January 12 declaration that the ecosystem would grow through the use of custom-built sidechains.
On January 23rd, the network was down due to an anomaly that prompted half of the Cardano nodes to disconnect and restart. It was just a week before the launch of the brand-new algorithmic stablecoin.
A stablecoin rating system, comprising an initial analysis for up to 20 digital currencies, is reportedly being developed by risk assessment agency Moody’s Corporation in early 2023.