Cardano-Based First Stablecoin Issued by COTI

by in Cryptocurrency News

Cardano Coti stablecoin Djed

In terms of the previously held Cardano conference, Charles Hoskinson, the establisher of the platform unveiled a new stablecoin coming to the environment.

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The stablecoin, named Djed, was created due to the collaboration between Cardano and COTI, which is a blockchain protocol focused on DeFi payments.

Djed is a crypto-pegged stablecoin powered by smart contracts and algorithms. It is developed by IOG (Input Output Global) and released by COTI. Djed reaches stability by keeping a reserve of base assets through mint and burn activities.

Commenting on the news, the CEO of COTI, Shahaf Bar-Geffen noted the growth of the stablecoin sector during the last several years.

He added that Djed will essentially boost the settlement of transactions on the network. Previously, on September 23, Coti revealed a partnership with Cardano's stablecoin hub, Ardana.

Stablecoins are vital components of DeFi as being pegged to a certain asset, they reduce price fluctuations. Coti platform was launched in 2017. It has a native coin COTI, which currently trades at around $0.59 with a market cap of over $512 million and ranks 121.

Cardano’s native token ADA ranks 4th with a market cap of over $67.6 billion.

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With the recent Alonzo hard fork upgrade, Cardano allows building various projects on top of it.