$DJED is Coming to Cardano Mainnet
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COTI announced earlier this week that $DJED will release on Cardano Mainnet in January.
Exciting Announcement From COTI:
After months of anticipation in regard to the release of the $DJED stablecoin, those who are enthusiastic about this Cardano-based stablecoin will only have to wait a few more months until $DJED releases.
Shahaf Bar-Geffen; CEO of COTI, a self-described “platform for creating price table coins,” recently announced that after a successful audit $DJED is fully prepared to go live on the Cardano Mainnet in January of 2023.
What is $DJED?
$DJED aims to function as a stable asset pegged to the U.S. Dollar using an algorithmic model that allows a user to send $1 worth of $ADA to receive 1 $DJED in return and vice versa.
IOHK has described $DJED as “an algorithmic stablecoin protocol that behaves like an autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.”
Using the aforementioned algorithmic model, $DJED is collateralized with reserves of the volatile cryptocurrencies $ADA and $SHEN providing a 400%–800% collateralization rate. Any $ADA price fluctuations causing the collateralization rate to fall at concerning rates will be “offset by $SHEN, covering shortfalls and guaranteeing the collateralization rate.”
The Significance of $DJED:
$DJED aims to function as a stable asset pegged to the U.S. Dollar using an algorithmic model that allows a user to send $1 worth of $ADA to receive 1 $DJED in return and vice versa.
In times of immense volatility, as we have seen over the past year or two, a price-stable token available in the Cardano ecosystem allows a more feasible and safe opportunity to engage within it allowing more mainstream exposure and usage.
Currently; there are only three options to purchase stablecoins using ADA, (1) send your $ADA to a centralized exchange and exchange your $ADA for a stablecoin (forcing you to store your stablecoin in an exchange putting your funds at risk) and (2) exchanging your asset with the newly released $iUSD synthetic asset released by Indigo Protocol as well as (3) purchasing wrapped stablecoins (which are extremely experimental).
The release of $DJED provides a much-needed solution and alternative to the current selections present. COTI has also secured an abundance of partnerships to allow $DJED to have mainstream utility on a number of Cardano-based projects/applications.
Why Are Stablecoins Important?
$DJED; like many other stablecoins, provide immense utilities for ecosystems such as Cardano that make them extremely significant for their success. Stablecoins that can utilize their stabilization mechanisms correctly are not affected by volatility providing a far more secure form of storing funds digitally within an ecosystem. Furthermore; stablecoins provide a far more feasible and useful medium of exchange when engaging in transactions, as much of the world still remains focused on a token’s denomination in fiat currencies.
Those that preside in high-inflation economies find these stablecoins to be a far more beneficial store of value as they are oftentimes pegged to more stable currencies, like the U.S. Dollar. With the combined benefits of being shielded from volatility along with instant transfers and low fees, many have begun using these digital assets over and over again.
The Future of Cardano:
With the release of $DJED, the future of Cardano truly does look bright. $DJED has the potential to allow more mainstream exposure and utilization of the ecosystem without having to deal with the volatile nature of cryptocurrencies.
Enjoying the technology powering these ecosystems and utilizing them for their true purposes is how the world can be changed for the better and with $DJED, it can allow so many more people to utilize this ecosystem to empower themselves in some capacity just as it was meant to do.
