- The Cardano blockchain to unveil a new stablecoin
- Coti is the official issuer of the new DeFi stablecoin, Djed
- The new stablecoin is built on an algorithmic design and will use smart contracts
The Cardano blockchain is set to unveil a new stablecoin on its ecosystem that will be a tool for DeFi transactions with zero transactions fees.
Coti, Cardano’s payment gateway provider, is the official issuer of the new DeFi stablecoin, Djed. The news of the release was announced on September 26 by the Cardano founder, Charles Hoskinson, and Coti CEO, Shahaf Bar-Geffen.
To guarantee price stability, the new stablecoin is built on an algorithmic design and will use smart contracts as an instrument for transactions on the platform. The stablecoin is specifically designed to be used for paying transactions fees on Cardano to avoid high gas gees and market volatility.
According to the research paper on the Djed coin, the protocol will behave like an autonomous bank for buying and selling stablecoins for a price pegged to a target price. The stablecoin will maintain a base coin reserve and still mint and burn other reserve coins and assets.
The Cardano founder terms this as a gamechanger in the crypto space since it will appeal to a new audience.
The news comes a short time after a recent Coti-Ardana partnership meant to bring decentralized stabelcoin payments to Cardano’s AdaPay platform.