ADA-backed algorithmic stablecoin ‘Djed’ launched on Cardano

Since the autumn of the TerraUSD (UST) algorithmic stablecoin in Could 2022, many customers within the crypto area have developed a weariness towards that exact asset class. The marketplace for algorithmic stablecoins has declined 10x from its all-time excessive earlier than the Terra collapse.

Nonetheless, this has not stopped Cardano community builders from pushing ahead with the launch of the ecosystem’s overcollateralized stablecoin on Jan.31. The brand new algorithmic stablecoin, Djed (DJED), launched on the Cardano mainnet and is pegged to the USA greenback and backed by Cardano’s native cryptocurrency, ADA. It makes use of the Shen (SHEN) token as its reserve coin.

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Based on the announcement, the brand new token lately accomplished a profitable safety audit and was below improvement for over a 12 months. DJED is a product of Coti, a decentralized finance (DeFi) options developer on the Cardano blockchain, as a way for brand new DeFi and fee alternatives.

Cointelegraph reached out to the builders for additional feedback on the launch. 

Previous to the launch of the brand new Cardano stablecoin, the concept of bringing one other algorithmic stablecoin into existence precipitated tremors among the many on-line crypto group.

Associated: Buterin: The way to create algo stablecoins that don’t flip into ponzis or collapse

This is among the newest in a collection of latest updates popping out of the Cardano community, which included an announcement from co-founder Charles Hoskinson on Jan.12 that the ecosystem will broaden by way of custom-built sidechains.

On Jan. 23, resulting from an anomaly, 50% of Cardano nodes disconnected and needed to restart, which precipitated a community outage. This was just one week earlier than the launch of the brand new algorithmic stablecoin.

At the start of 2023, Bloomberg reported that the chance evaluation agency Moody’s Company is creating a scoring system for stablecoins, together with an preliminary evaluation for as much as 20 digital belongings.