• Djed, a Cardano-based stablecoin, is set to launch next week.
• Djed is overcollateralized, meaning that it requires more than 400% in collateral value to be posted before it is issued to a user.
• DjedPay, a payments application that uses djed, will enable users to transfer the tokens to merchants and businesses.
Cardano-based decentralized stablecoin djed is set to launch next week, bringing a much-needed financial option to the Cardano network. Developed jointly by Cardano code maintainer IOG and Coti, a layer 1 blockchain, djed has been designed to be an overcollateralized stablecoin. This means that, before djed is issued to a user, more than 400% in collateral value must be posted. Such a system would allow djed’s value to remain steady during market stress, thereby avoiding a repeat of the infamous terraUSD, the stablecoin linked to luna which plummeted over 99% in May.
In addition to djed, developers have also built DjedPay, a payments application that uses the stablecoin. Users will be able to use DjedPay to transfer tokens to merchants and businesses, allowing for a more seamless transfer of funds. Djed will also be integrated into over 40 Cardano-based decentralized finance applications (dapps) at launch, as per a November report on The Block. This will allow users to take advantage of the advantages of djed, such as low fees and quick transfers.
The Cardano dapp ecosystem currently locks up over $72 million worth of tokens, according to DefiLlama data. With the launch of djed, users will be able to access a reliable and secure financial option that is backed by Cardano’s robust blockchain technology. This will help to further promote the Cardano network and its use cases, while also providing a reliable source of stablecoins to users. The launch of djed is an exciting development for the Cardano network, and it is expected to be a major success.