• Djed, a Cardano-based overcollateralized stablecoin, is expected to launch next week.
• Djed will be integrated to several Cardano dapps on launch, and a payments application, DjedPay, is also being developed.
• Djed will use an overcollateralized mechanism to ensure its value holds stably and prevent a collapse like that of terraUSD.
Cardano-based decentralized stablecoin djed is set to launch next week, made possible by a joint development by Cardano code maintainer IOG and Coti, a layer 1 blockchain. This highly anticipated stablecoin will be integrated to several Cardano-based decentralized finance (DeFi) applications on launch, and has been designed to use an overcollateralized mechanism to ensure its value holds stably and prevent a collapse like that of the infamous stablecoin terraUSD.
The overcollateralized mechanism of djed requires more than 400% in collateral value to be posted before it is issued to a user. This means that the value of the stablecoin will remain relatively stable even during market stress. The token can also be minted by ADA holders. In addition to djed, a payments application, DjedPay, is also being developed that would allow users to transfer the tokens to merchants and businesses.
The launch of djed is highly anticipated by the Cardano community, as the decentralized finance (DeFi) ecosystem on the network currently locks up over $72 million worth of tokens, according to data from DefiLlama. With djed, users will be able to use the Cardano network to borrow, lend, and trade with stablecoins, allowing for greater financial rewards for users.
The launch of djed will be a major milestone for the Cardano ecosystem, as it will open up new opportunities for users to access a variety of DeFi services from one platform. With djed, users will be able to securely store their funds while earning passive income, and merchants and businesses will be able to accept payments in djed with minimal fees. With the launch of djed, Cardano is set to become a major player in the DeFi space.