ADA backed stablecoin Djed launched on Cardano

Djed, the overcollateralized stablecoin on Cardano, is now live on the mainnet after more than a year of development, planning and completing a successful security audit.

COTI’s Djed algo-stablecoin launched 

Many crypto users worldwide have grown weary of that specific asset class with the collapse of the TerraUSD {UST} algorithmic stablecoin in May 2022. Since its peak before the Terra collapse, the market for algorithmic stablecoins has decreased by ten times.

Despite this, Cardano network developers launched the ecosystem’s overcollateralized stablecoin on Jan. 31. The new algorithmic stablecoin, Djed {DJED}, was released on the Cardano mainnet and is anchored to the U.S. dollar. It is backed by Cardano’s original crypto, ADA, which is now trading down $0.386.

The new token, which has been in development for more than a year, just finished a successful security audit, according to the release. As a platform for new DeFi and payment options, DJED is a creation of Coti, a developer of decentralized finance {DeFi} solutions on the Cardano blockchain.

The prospect of creating yet another algorithmic stablecoin raised concerns in the online crypto market before the release of the new Cardano stablecoin.

This is the latest in a string of recent announcements from the Cardano network, including a statement made on Jan. 12 by co-founder Charles Hoskinson about the ecosystem’s planned expansion through specially created sidechains.

A week before the new algo stablecoin’s introduction

A network outage on Jan. 23 was brought on by an anomaly that required 50% of Cardano nodes to disconnect and restart. The new algorithmic stablecoin’s introduction was just one week away.

Starting in 2023, there were claims that the risk assessment company Moody’s Corporation was creating a rating system for stablecoins that would include a preliminary review of up to 20 digital assets.