COTI, the issuer of the algorithmic stablecoin Djed ($DJED), has recently announced that the Cardano-powered algorithmic stablecoin will be listed on MuesliSwap, the network’s largest decentralized exchange (DEX).
COTI retweeted an announcement from the MuesliSwap team, which revealed it will list both $DJED and $SHEN, a reserve token meant to support Djed’s stability, and whose holders will receive additional rewards when Cardano holders stake their coins to mint the stablecoin.
The listing is scheduled for next week, presumably immediately following the launch of the algorithmic stablecoin. Djed is a formally verified algorithmic stablecoin for Cardano that is backed by cryptocurrency. The stablecoin was designed by IOG, the company behind Cardano development, and it is issued by COTI Group.
The use of smart contracts by Djed ensures price stability. Djed has the potential to be useful in decentralized finance (DeFi). It operates by “reserving base coins and minting and burning stablecoins and reserve coins.”
According to its documentation, the stablecoin functions as an autonomous bank that “buys and sells stablecoins for a price in a range that is pegged to a target price,” and it is crypto-backed “in the sense that the bank keeps a volatile cryptocurrency in reserve.”
The reserve is then used to purchase stablecoin from users who wish to sell them, and the revenue generated by stablecoin sales is saved in the reserve. Djed has an over-collateralization mechanism to avoid a collapse similar to the Terra Protocol last year, which means users must pledge more than 400% in collateral to mint Djed.
According to CryptoGlobe, popular and respected Cardano influencer “ADA whale” recently stated that “an insane amount of cool stuff” is coming to Cardano and its ecosystem. Among the projects based on Cardano are algorithmic stablecoin $DJED, fit-backed stablecoin $USDA, and stablecoin decentralized exchange TeddySwap.
Cardano’s market cap surpassed that of popular meme-inspired cryptocurrency Dogecoin ($DOGE) earlier this month, at a time when $ADA is recovering from its second-largest drawdown ever.
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