Cardano’s first decentralized stablecoin, Djed, will be available on the main network in January.
The move was announced by developers at the Cardano Summit event in Lausanne, Switzerland. Djed is a soft-pegged, decentralized stablecoin that will exist on Cardano’s Layer 1 blockchain.
Djed, which is backed by crypto assets rather than fiat money, was created by a company called Coti in collaboration with Cardano lead developer Input Output.
For more than a year, the stablecoin has been in development. Cardano users will be able to use ADA, the native cryptocurrency of the Cardano network, as collateral to mint the stablecoin once it is released.
Tomorrow, NOV 21st, 3pm CET on #CardanoSummit2022 main stage. Watch it! $COTI @COTInetwork @Cardano @IOHK_Charles pic.twitter.com/bsR1uiORI1
— Shahaf Bar-Geffen (@shahafbg) November 20, 2022
The stablecoin is overcollateralized, which means it is backed by excess collateral in the form of cryptocurrency held in reserve. Dai, the most popular decentralized stablecoin in the Ethereum ecosystem, uses a similar design. To be minted, each Djed will require more than 400% in collateral value.
“Djed takes what’s great with crypto as collateral, meaning no fiat in the system, but also takes over-collaterization very seriously,” Coti CEO Shahaf Bar-Geffen.
At its launch, Djed will be integrated into 40 apps in the Cardano ecosystem, Bar-Geffen said. DjedPay, a service that will allow merchants and other crypto players to accept Djed payments, will also be introduced as part of the launch.
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