ADA Bulls with Cardano’s Djed Stablecoin Set to Debut in January

• Cardano’s Djed could be used to settle transaction fees on the Cardano platform in the future says Shahaf Bar-Geffen.
• Stablecoins are digital currencies whose prices are kept stable by being tied to the prices of other assets, like fiat currencies or gold.

Djed is a new algorithmic stablecoin being developed by Input Output HK (IOHK) and COTI for the Cardano network. It is designed to be a more stable and secure alternative to other algorithmic stablecoins, such as TerraUSD (UST).

Djed will be pegged to the US dollar and will be backed by Cardano’s native cryptocurrency, ADA. It will also use a reserve coin called SHEN to help maintain its peg.

Unlike other algorithmic stablecoins, Djed will be over-collateralized. This means that there will always be more ADA backing each Djed in circulation. This will help to prevent Djed from depegging, which is when the value of a stablecoin falls below its peg.

Djed will also use proof-of-reserves, which means that users will be able to verify the amount of ADA backing each Djed in circulation. This will help to build trust in Djed and make it more attractive to users.

Djed is still in development, but it has the potential to be a major player in the stablecoin market. It is designed to be more stable and secure than other algorithmic stablecoins, and it is backed by a large and growing ecosystem.

Here are some of the key features of Djed:

• P pegged to the US dollar
• Backed by Cardano’s native cryptocurrency, ADA
• Over-collateralized
• Uses proof-of-reserves
• Integrated with more than 40 apps in the Cardano network
• Can be used for multiple purposes, such as alternative banking, mobile payments, and lending remittance

Djed is a promising new stablecoin that has the potential to be a major player in the market. It is designed to be more stable and secure than other algorithmic stablecoins, and it is backed by a large and growing ecosystem.

Comparison with UST

Djed is often compared to TerraUSD (UST), another algorithmic stablecoin. However, there are some key differences between the two coins.

UST is only collateralized by LUNA, which is a volatile cryptocurrency. This makes UST more susceptible to depegging. Djed, on the other hand, is over-collateralized by ADA, which is a more stable cryptocurrency. This makes Djed less likely to depeg.

Another difference between Djed and UST is that Djed uses proof-of-reserves. This means that users can verify the amount of ADA backing each Djed in circulation. UST does not use proof-of-reserves, which makes it more difficult for users to trust the coin.

Overall, Djed is a more stable and secure alternative to UST. It is backed by a more stable cryptocurrency and it uses proof-of-reserves. This makes Djed a more attractive option for users who are looking for a stablecoin that they can trust.