Algorithmic stablecoin Djed released on Cardano network

The team behind the COTI Network blockchain platform, in collaboration with Input Output, has released the algorithmic stablecoin Djed on the Cardano network. Work on the project lasted more than a year.

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 asset is intended for use in DeFi protocols within the Cardano ecosystem as a ‘stable alternative to volatile cryptocurrencies’.

The stablecoin is over-collateralised — backed by 400-800% of the native ADA asset, as well as SHEN as the reserve coin. 

This approach makes Djed similar to DAI from MakerDAO. It also features a mint-and-burn mechanism like other algorithmic stablecoins. 

The new coin is expected to be integrated into 40 applications across the Cardano ecosystem. Djed is already listed on decentralized exchanges MinSwap, Wingriders and MuesliSwap. 

In November, representatives of COTI Network told The Block about plans to launch DjedPay — a service allowing merchants and other market participants to accept payments in stablecoins. 

Earlier, Cardano founder Charles Hoskinson called algorithmic stablecoins ‘the gold standard of the digital age’.