Cardano founder Charles Hoskinson has unveiled during the Cardano Summit COTI will serve as the official issuer of a new stablecoin based on the Djed stablecoin protocol.
According to him, the Djed stablecoin protocol, which is based on an algorithmic design, will help grow the Cardano ecosystem.
Some of the most relevant aspects of the assets is that it leverages smart contracts to ensure price stability as well as smart contract programming to ensure that stablecoin will work effectively for decentralized finance (DeFi) transactions.
How Does Djed Work?
Djed basically maintains a reserve of base coins and allows users to mint and burn units of the stablecoin and reservecoins.
Shahaf Bar-Geffen, CEO at COTI Group, stated:
“The stablecoin ecosystem has matured tremendously over the past few years. Blockchain participants are using stablecoins to engage in everyday transactions because they allow monetary value to be exchanged in a seamless manner, regardless of the sender and recipient’s location. I believe that adding the Djed-based stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform.”
Charles Hoskinson, CEO of IO Global, said:
“The Djed stablecoin could be a game changer in the crypto space.”