Cardano Parent Company IOG Unveils Two Versions of Stablecoin Djed
The entire cryptocurrency market capitalization has seen a notable increase of around 6% over the last several days, as of today, reaching over $2 trillion USD. Cardano (ADA), proclaimed as the Ethereum-killer and currently the world’s third-largest crypto by market cap, is forging ahead.
Cardano (ADA) has risen 1.5% and is now trading at a fresh all-time peak of $2.42, reflecting a market value of $77.66 billion. Cardano’s year-to-date gains now run at a whopping 1300%. The ADA price has increased by more than 100% in the past month.
The use of smart contracts will significantly improve Cardano’s network ability. As a result, it will open up new possibilities in the DeFi sector and develop as a genuine Ethereum-killer.
The cryptocurrency has risen in value with the excitement revolving the impending Alonzo hardfork, which will bring the much-anticipated smart contract capabilities to the Cardano network.
Smart contracts, which are self-executing commitments between buyers and sellers, have played a significant role in Ethereum’s development. Cardano’s parent company, IOG (Input Output Global), has unveiled a distinct stablecoin algorithm called Djed to help the network’s development.
The Djed stablecoin will address the most frequent concerns about credibility, balances, and liquidity. Cardano will use its forthcoming smart contract capabilities to ensure price stability. According to IOHK’s official blog article, “Djed is a crypto-backed algorithmic stablecoin agreement that functions as an autonomous banking institution.”
“It works by maintaining a stockpile of base coins and generating and destroying stablecoins and reserves.” The Cardano stablecoin will work in the same way as an autonomous “central bank-like” arrangement. Surprisingly, the Djed will not be tied to a single currency. According to the blog post, “it may operate with rest of the currencies until oracles provide the deal with the appropriate price index.”
Following the publication of the Djed paper, Cardano co-founder Charles Hoskinson announced the formation of a Plutus team to develop a model. Furthermore, IOG said that Djed’s characteristics are “confirmed by mathematical theorems.”
Additionally, the Cardano-based stablecoin will have two different versions: the basic Djed stablecoin, which will be “simple and intuitive.” The other will be a longer Djed with additional stability initiatives. IOG also said that it would provide additional incentives to keep the reserve ratio at an optimal level.
Cardano launched the stablecoin as a testnet venture and has already deployed it on Binance Smart Chain, Polygon, Ethereum, Avalance, and other platforms. Aside from Cardano, the entire crypto market is seeing a significant rebound. Several of the top 10 cryptocurrencies are up between 6% and 20%. Bitcoin (BTC) is up 6%, passing the $47,000 mark.
In the cryptocurrency sector, Etheruem (ETH) has pushed above its critical resistance level of $3200, gaining 2.1% in the previous 24 hours. Following the footsteps of Cardano (ADA), XRP has gained 2.90% in the last 24 hours.