ADA-backed algorithmic stablecoin Djed launched on Cardano

Since the autumn of the Terra (LUNA) algorithmic-stablecoin successful mid-2022, galore users successful the crypto abstraction person developed a weariness towards that peculiar plus class. The marketplace for algorithmic stablecoins has dropped 10 times what it was astatine its all-time precocious anterior to the Terra incident.

However, this has not stopped developers connected the Cardano web pushed guardant with the motorboat of the ecosystem’s overcollateralized stablecoin. Djed (DJED) launched connected the Cardano mainnet connected Jan 31. and is pegged to USD and backed by Cardano’s autochthonal coin ADA (ADA). It uses the SHEN token arsenic its reserve coin.

According to the announcement the caller token precocious completed a palmy information audit and was nether improvement for implicit a year. DJED is simply a merchandise of Coti, a decentralized fiscal (DeFi) solutions developer connected the Cardano blockchain, arsenic a means for caller DeFi and outgo opportunities.

Cointelegraph reached retired to the developers for further comments connected the launch. 

Prior to the motorboat of the caller Cardano stablecoin, the thought of bringing different algorithmic stablecoin into beingness caused tremors among the online crypto community.

Related: Buterin: How to make algo stablecoins that don’t crook into Ponzis oregon collapse

This is 1 of the latest successful a bid of caller updates coming retired of the Cardano network, which included an announcement from co-founder Charles Hoskinson connected Jan.12 that the ecosystem volition expand via custom-built sidechains.

On Jan. 23, owed to an anomaly, 50% of Cardano nodes disconnected and had to restart, which caused a web outage. This was lone 1 week anterior to the motorboat of the caller algo stablecoin.

At the opening of 2023, Bloomberg reported that the hazard appraisal steadfast Moody's Corporation is processing a scoring strategy for stablecoins, which volition see an archetypal investigation for up to 20 integer assets.