Milkomeda, a Layer 2 protocol that “delivers rollup technologies to leading Layer 1 ecosystems by offering the most popular smart contracting language, Solidity, while enhancing inter-blockchain interoperability, user experience, and developer traction all at the Layer 2 level;” announced that the DJED stablecoin protocol would be arriving on Milkomeda-C1, an EVM compatible side chain that enables Ethereum DApps to be deployed in the Cardano ecosystem which opens the gateway for Ethereum developers.
DJED’s deployment on the Milkomeda sidechain marks the third deployment of the DJED stablecoin in totality and the first deployment of the protocol on a Solidity-based sidechain, paving the way for DJED’s deployment on a multitude of other Solidity-based ecosystems. Additionally, the protocol’s deployment on Milkomeda marks the first time DJED’s protocol will be released and maintained completely autonomously with DJED’s Version O (Orisis) Protocol with the protocol’s oracles controlled by Milkomeda’s nodes that check prices every ten seconds and automatically insert transaction limits to ensure the reserve ratios are satisfied. Furthermore, this marks a historic moment for the Milkomeda ecosystem with the $DJED stablecoin being the first algorithmic stablecoin to be launched on the sidechain.
Djed Alliance, the collaborative arm of the Djed Stablecoin Protocol, which supports the deployments of the protocol on multiple blockchains and sidechains, stated that the deployment on Milkomeda-C1 is based on version O (Osiris) of the protocol. The key differentiation of version Osiris of the DJED protocol in contrast to prior editions is the aforementioned autonomous nature of the updated version as well as Osiris’ enabling of reserve coins and stablecoins to be sold in unison back to the DJED contract, regardless of the reserve ratio. For additional context, a reserve coin in the DJED protocol assigns ownership of a portion of the surplus of the underlying reserves of the base coin.
DJED’s deployment on the Milkomeda sidechain is a remarkable moment that is bound to attract liquidity, developers, and investors alike to Milkomeda and the Cardano ecosystem through a dollar-pegged stablecoin due to the fact that many in the Ethereum ecosystem, unfortunately, remain reluctant to invest in Cardano’s native token, ADA. Through a stablecoin, those from Ethereum can experience the Cardano ecosystem and deploy their decentralized applications for those in Cardano to enjoy.