Those that invest in coins are aware that new coins are being released into the crypto market, providing investors with a plethora of possibilities.
The Djed by ADA is the most recent stablecoin. Djed is the Cardano network’s first over-collateralized ADA-backed stablecoin contract.
It functions by maintaining a reserve of base coins (ADA) and minting and burning stablecoins and reserve coins.
The contract keeps stablecoins pegged to a target price by purchasing and selling stablecoins, utilizing the reserve, and charging fees that grow in the reserve.
The ultimate benefactors of this income stream are reserve coin holders, who contribute monies to the reserve while accepting the risk of price fluctuations.
Djed is the first stablecoin protocol that has been formally validated. Its design and stability properties have considerably benefited from the usage of formal approaches in the programming process.
The stablecoin is a Cardano-backed algorithmic stablecoin developed by Coti, a decentralized financial (DeFi) solutions developer on the Cardano blockchain.
Since its announcement, the stablecoin has been one of the most expected news in the crypto market, particularly among ADA investors, who feel it is a strong enough trigger to drastically move ADA.
Despite that the stablecoin has only been launched, the stablecoin has already secured a few listings on Cardano marketplaces.
Djed is currently accessible on djed.xyz, MinSwap, Wingriders, and MuesliSwap. Bitrue will be the first centralized exchange to list Djed, and it is predicted that it will be listed on other key platforms in the Cardano ecosystem in the future.
Djed, as previously predicted, would be a linked bedrock that will open up options for the Cardano ecosystem.
Following that, the developers formed over 40 collaborations to ensure that the stablecoin is properly utilized and adopted.
Djed is also pegged to the US dollar and backed by Cardano’s native cryptocurrency, ADA. The Shen (SHEN) token serves as the token’s reserve coin.
According to the announcement, the stablecoin will go through two more generations of updates in the following months.
Version 1.2 will be the first version to incorporate Vasil features, such as a reference script, to improve the token’s scalability.
The second upgrade, Djed 1.3, is an enhanced version that will handle a more comprehensive delegation program and include dynamic fees and prices, leading to increased liquidity provision.
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