It's hoped Djed will make transaction costs on the Cardano network cheaper and more predictable.
Cardano will soon have a stablecoin for the very first time, it has been revealed.
At a summit held in Wyoming yesterday, the blockchain network’s founder Charles Hoskinson unveiled Djed, an algorithmic stablecoin that uses smart contracts to eliminate price fluctuations.
All of this could open doors for Cardano — dubbed an “Ethereum killer” by some enthusiasts — to play a bigger role in the world of decentralized finance.
The platform’s native cryptocurrency, ADA, has surged in value over recent months. With a market capitalization of $71.6 billion at the time of writing, it’s now the third-biggest coin that’s listed on CoinMarketCap.
According to announcement unveiling the stablecoin, Djed will primarily be used for settling transaction fees on the Cardano network — making costs more predictable and eliminating the danger of “volatile and exorbitant gas fees.”
Unlike other assets, Djed is also being touted as a “formally verified” stablecoin protocol, with a series of measures being implemented to ensure that its value doesn’t go above or below the set price.
The COTI platform has been tapped as the official issuer of Djed. Shahaf Bar-Geffen, COTI Group’s chief executive said:
“The stablecoin ecosystem has matured tremendously over the past few years. Blockchain participants are using stablecoins to engage in everyday transactions because they allow monetary value to be exchanged in a seamless manner, regardless of the sender and recipient’s location.”
Hoskinson also predicted that Djed could be a “game-changer” in the crypto space that will appeal to an entirely new audience.
Djed’s development comes as the U.S. continues to examine whether stablecoins should be subject to tighter regulation, amid fears that this asset class could contribute to financial instability.