Since the autumn of the TerraUSD (UST) algorithmic stablecoin in Might 2022, many customers within the crypto area have developed a weariness towards that individual asset class. The marketplace for algorithmic stablecoins has declined 10x from its all-time excessive earlier than the Terra collapse.
Nonetheless, this has not stopped builders on the Cardano community from pushing ahead with the launch of the ecosystem’s overcollateralized stablecoin. Djed (DJED) launched on the Cardano mainnet on Jan 31. and is pegged to USD and backed by Cardano’s native coin ADA (ADA). It makes use of the SHEN token as its reserve coin.
In keeping with the announcement the brand new token lately accomplished a profitable safety audit and was underneath improvement for over a yr. DJED is a product of Coti, a decentralized monetary (DeFi) options developer on the Cardano blockchain, as a method for brand spanking new DeFi and fee alternatives.
Cointelegraph reached out to the builders for additional feedback on the launch.
Previous to the launch of the brand new Cardano stablecoin, the concept of bringing one other algorithmic stablecoin into existence triggered tremors among the many on-line crypto neighborhood.
Associated: Buterin: How you can create algo stablecoins that don’t flip into Ponzis or collapse
This is without doubt one of the newest in a collection of latest updates popping out of the Cardano community, which included an announcement from co-founder Charles Hoskinson on Jan.12 that the ecosystem will broaden by way of custom-built sidechains.
On Jan. 23, resulting from an anomaly, 50% of Cardano nodes disconnected and needed to restart, which triggered a community outage. This was just one week previous to the launch of the brand new algo stablecoin.
In the beginning of 2023, Bloomberg reported that the danger evaluation agency Moody’s Company is growing a scoring system for stablecoins, which is able to embody an preliminary evaluation for as much as 20 digital property.