Cardano, Blockchain Payment Startup Coti to Unveil Algorithmic Stablecoin Djed in Jan 2023
As per a press statement published on Monday, the Proof-of-Stake (PoS) blockchain platform Cardano and the blockchain payment network Coti will unveil the algorithmic stablecoin Djed in two months (January 2023). According to the media release, the algorithmic stablecoin is going through auditing and stress testing.
Djed will debut through 40 associates and decentralized exchanges, supported by two tokens: Caldano (ADA) and SHEN. If Caldano has severe volatility to the negative, the model might fail, culminating in Djed losing complete backing. As stated in an informative video, SHEN will thus cover Caldano’s pricing variations and provide market stability.
Terra aimed to create an algorithmic stablecoin devoid of centralized entities. In May, however, the crash of LUNA and its reserve currency UST made the blockchain sector and authorities skeptical of comparable features. As per their respective publications, the three biggest stablecoins by market cap – USDT, USDC, and BUSD – are all underpinned by cash and U.S. Treasury notes.