The long-awaited ‘Djed’ Cardano stablecoin launch date has been announced. ADA prices have plummeted today, but there may be a rebound next week.
The COTI Network stated on January 25 that the Cardano stablecoin would be released next week. It did not mention a date, but prior blog articles suggested that it would be before the end of January.
It went on to say that the only thing holding back the launch was the chain index synchronizing process. This process began a week ago and is expected to take 14 days, implying that the debut date could be around February
COTI also announced the addition of DJED and its balancer currency SHEN to the Bitrue exchange.
COTI is a scalable layer-1 enterprise network that has been working on the Djed stablecoin.
It further stated that a snapshot system and user interface had been created to track prizes.
“We are designing a snapshot mechanism and UI that will be introduced to djed.xyz, where $SHEN holders will be able to track these extra payouts, as part of our effort to stake the ADA that is deposited to the Djed smart contract and produce extra rewards for $SHEN holders.”
In exchange for DJED, ADA is paid to the stablecoin smart contract. When ADA prices fluctuate, a third token called SHEN serves as the balance. As a result, ADA will be used to over-collateralize the stablecoin.
Coti indicated last week that Djed is 400% to 800% over-collateralized. “This means it has 4 to 8 times the underlying value of the total amount of Djed minted,” it added.
In addition, Minswap, Cardano’s top DEX, established a few of pools for the new tokens.
Cardano enthusiasts and ADA holders have been eagerly awaiting the debut. However, ADA fell throughout the AM Asian trading session on Wednesday.
ADA prices are currently experiencing a significant decline. The coin is down 6.4% on the day as it seeks support.
ADA hit an eleven-week high of $0.384 on January 22 but has since fallen along with the rest of the crypto market. It is currently trading at $0.354, having dropped significantly during the last six hours.
The retreat may provide another purchasing opportunity in the run-up to the Djed launch, which may push ADA prices even higher.