A new stablecoin will appear on the Cardano blockchain to provide a tool for decentralized financial operations (DeFi) and avoid transaction fees.
Cardano payment gateway provider Coti will be the official publisher of Djed, a new DeFi-focused stablecoin for the Cardano network, announced Cardano founder Charles Hoskinson and Coti CEO Shahaf Bar-Geffen at the Cardano Summit on September 26th.
The new stablecoin will be based on algorithmic design, use smart contracts to ensure price stability, and provide a tool for DeFi transactions. Stablecoins are supposed to pay transaction fees in the Cardano network in order to avoid “volatile and exorbitant gas fees” and to make transaction costs “more predictable”.
According to Djed’s research paper published in August, his stablecoin protocol will act like a “self-regulating bank that buys and sells stablecoins at a target price range”. Stablecoins work by maintaining a reserve of base currency while minting and burning other stable assets and reserve currencies.
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According to Hoskinson, the stablecoin Djed could be a game changer in the crypto industry as it “attracts a whole new audience at a time when the industry is experiencing tremendous growth”.
The news comes shortly after Coti partnered with Cardano’s stablecoin hub Ardana to bring decentralized stablecoin payments to AdaPay, a Cardano (ADA) payment gateway that supports over 30 fiat currencies.