A new DeFi focused stablecoin comes on Cardano network

  • Cardano’s payment gateway provider will be the official issuer of Djed, a new DeFi-focused stablecoin
  • The new stablecoin will be built on an algorithmic design that uses smart contracts
  • The stablecoin will be used to pay the transaction fees on the Cardano network

On the Cardano blockchain, a new stablecoin will provide a mechanism for decentralised finance (DeFi) activities while avoiding transaction costs.

Cardano founder Charles Hoskinson and Coti CEO Shahaf Bar-Geffen announced on Sunday at the Cardano Summit that Coti, the official issuer of Djed will be the payment gateway provider for Cardano for the Cardano network.

Providing stability

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To provide price stability and provide an instrument for DeFi transactions, the new stablecoin will be built on an algorithmic design employing smart contracts. Stability will be used to pay the transaction commissions on the Cardan network, avoiding volatile and excessive gases and making the transaction costs more predictable.

Djed’s stablecoin protocol, according to research paper released in August, will act as a stand-alone bank that buys and sells stable coins at a price within a range linked to a target price. Stablecoin will work by minting and burning various stable assets and reserve currencies while maintaining a base currency reserve.

Game changer 

The Djed stablecoin, according to Hoskinson, might be a game-changer in the crypto business since it is aimed at a whole new audience at a time when the industry is already growing exponentially.

Coti recently joined with Ardana, Cardano’s stablecoin hub, to enable decentralised stablecoin payments to AdaPay. It is a Cardano (ADA) payment gateway that supports over 30 fiat currencies.

Smart Contracts 

Recently Cardano has completed the Alonzo hard fork, ushering its long-awaited smart contract functionality. The update had been successfully completed at time 290. It will facilitate the creation and execution of smart contracts on the public blockchain for the first time. 

Despite the successful launch, Cardano believes that it is still very new and early days for the project. Plutus scripts, which the developers describe as a purpose-built smart contract development language and execution platform utilising the Haskell functional programming language, can be used to write smart contracts for Cardano using Alonzo branch.

Cardano might not have been a popular currency unlike Bitcoin and Ethereum, but the token is slowly gaining momentum and is popular among investors. While Cardano promised to challenge Ethereum’s supremacy in hosting decentralised finance (DeFi) and Web 3.0 apps, after starting in September 2017, the project has been chastised for failing to implement smart contract capabilities till now.

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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