The COTI platform will issue Djed, an algorithmic stablecoin for Cardano’s DeFi. The announcement was made during the two-day event Cardano Summit, which was held this weekend in Wyoming.
A new stablecoin is coming to the blockchain of Cardano which will provide a tool for decentralized finance (DeFi).
COTI Network (COTI), a platform fintech enterprise level that allows organizations to build payment solutions, will be the issuer of Djed, the new stablecoin of Cardano. This was announced by the founder of Cardano, Charles Hoskinson, and the CEO of Coti, Shahaf Bar-Geffen, on Sunday during the event Cardano Summit.
According to a statement, Djed is based on an algorithmic design that uses smart contracts to ensure price stability. Smart contract scheduling is also used to ensure stablecoin works effectively for DeFi transactions.
Besides, the stablecoin eIt is designed to be used to pay transaction fees on the network Cardano. An advantage of this is that it could avoid volatile and exorbitant gas fees for users by making transaction costs more predictable.
Djed: the new stablecoin algorithmic de Cardano
The CEO and co-founder of IOHK, Charles Hoskinson, had already presented the project of stablecoin in the middle of July this year. At that time, as we reviewed in Daily bitcoin, he had shared in a tweet four screenshots from an article describing “a formally verified cryptocurrency-backed and linked algorithmic stablecoin“.
Been Busy. pic.twitter.com/mmYGoBAsPO
— Charles Hoskinson (@IOHK_Charles) July 15, 2021
Name Grandpa comes from a symbol reproduced in Egyptian mythology that means “Balance“.
According to Djed’s research paper, your stablecoin protocol will behave like a “autonomous bank that buys and sells stablecoins for a price in a range that is tied to a target price“. The stablecoin will operate by maintaining a reserve of base currencies while minting and burning various other stable assets and reserve currencies.
In Hoskinson’s opinion, the new one stablecoin from Cardano “could be a game changer in the cryptocurrency space, attracting a whole new audience at a time when the industry is already experiencing astronomical growth“. He added in the statement:
Djed shares our commitment to formal verification, demonstrating a robust method to combat price volatility in the cryptocurrency markets.
For its part, Bar-Geffen highlighted that the stable currency “will significantly improve the way transactions are settled” In the net Cardano. The announcement comes just a couple of days after COTI joined with the center of stablecoins from Cardano, Ardana, to bring decentralized payments to ADAPay, a payment gateway Cardano (THERE IS) that supports more than 30 fiat currencies.
Association with Chainlink
During the two-day event in Wyoming there were other prominent announcements for the ecosystem of Cardano. Among them, a new strategic collaboration with Chainlink which will help developers create smart contracts for DeFi applications from Cardano.
Announcement: we partnered with @chainlink to help Cardano developers build smart contracts for secure DeFi applications. For press release, DM us or email [email protected] #CardanoSummit2021 pic.twitter.com/1qOs0WdLtq
— Input Output Media (@IOHKMedia) September 25, 2021
“Oracles are essential for making real-world data accessible in Cardano and supporting advanced smart contracts such as DeFi applications.Hoskinson commented on the association in a statement.
Sergey Nazarov, co-founder of Chainlink, he added for his part that DeFi developers at Cardano now they can connect and reproduce the prices of Chainlink in your smart contracts to gain access to high-quality price data in real time on a wide range of assets. “Ultimately, this will allow Cardano developers to create next-generation applications faster and more securely.“, He assured.
Initially, the information sources for real-time market prices will be linked to Cardano. Over time, additional data sources on sports and weather will follow, for use with insurance, games and tokens no fungibles (NFT).
Hannah Estefanía Pérez’s version / Daily bitcoin
Image from Unsplash
We would like to thank the author of this post for this remarkable content
Payment company COTI to launch stablecoin dubbed Djed in Cardano – DiarioBitcoin