21 Nov 2022
In January, Djed, a decentralized stablecoin Cardano-based, will hit the mainnet.
On the Cardano network, the Djed stablecoin will launch in January. In the Cardano ecosystem, Djed will be incorporated into 40 applications.
In January, Djed, Cardano's first decentralized stablecoin, will launch on the primary network. Developers made the announcement during the Cardano Summit conference in Lausanne, Switzerland.
Djed is a decentralized stablecoin that will operate on Layer 1 of the Cardano blockchain and is soft-pegged to the dollar.
Djed, backed by cryptocurrency assets rather than fiat money, was created by a company called Coti in cooperation with Cardano lead developer Input Output.
It has taken more than two years to develop the stablecoin. After the launch, Cardano users can use ADA, the network's native cryptocurrency, as collateral to mint the stablecoin.
The stablecoin is intended to be overcollateralized, which means that additional collateral in the form of cryptocurrency kept in reserve is used to back it.
The most well-known decentralized stablecoin in the Ethereum ecosystem, dai, uses a similar design. Each Djed must be minted with a collateral value of at least 400%.
Shahaf Bar-Geffen, CEO of Coti, told The Block that Djed "takes what's great with crypto as collateral, meaning no fiat in the system, but also takes over-collateralization very seriously."
Djed will be incorporated into 40 Cardano ecosystem apps at launch, according to Bar-Geffen.
DjedPay, a service that enables merchants and other crypto players to accept Djed payments, will also be unveiled alongside the launch.
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