Certainly, it is a brave move for Cardano to issue Djed stablecoin right now. For those who do not now, Djed is an algorithmic stablecoin not backed by US dollar. And as far as that idea goes, many of those who came before, are now embarrassingly dead in the dumps! In fact, a big reason that the crypto has been bearish for more than a year is Terra USD, an algorithmic stablecoin. Now, Djed stablecoin is supposed to be different, not in its idea, not in its operation, but somehow different in how much we trust its founder. Is that enough for investors?
Djed Stablecoin: Algorithmically Backed
Do not be discouraged if you read the title above and have no idea what it means. Perhaps, we live in times when we are supposed to read titles and not understand them and that’s okay. Maybe, it’s all about trust, just trust Charles Hoskinson and know that he is a kind soul. So of course, you and I can read a lot about how they use an algorithm to regulate the supply and demand and keep the value at $1. But, I cheated a lot in high school and then went on to study literature so I have no idea how algorithms work. But no worries, I used ChatGPT and it told me to trust the algorithm, so my anthropocentric views on comprehension are now slowly dying out.
And as a literature major, I like the sound of having a “new era” as Cardano’s marketing team keeps saying. They also keep saying how Djed stablecoin is a huge milestone for the whole DeFi sector which sound pretty awesome.
The point is, at this point in time, we simply cannot understand how things work. They will explain, and they will elaborate, but at the end of the day, it all comes down to faith. So, all we have to do is to listen to marketing departments, the advertising and Twitter announcements and invest in something we believe.
Yes, there’s some exciting and perhaps life-changing news! Djed stablecoin is now live on the Mainnet. It was live on testnet back in May 2022 and now it’s alive. But before you get overwhelmed, there’s even more exciting news and details!
Djed stablecoin is backed by ADA which we literally sell with full anonymity on HiExchange platform. The almighty algorithm will issue more ADA coins upon price increase and conversely buy off from the market upon decline. Basically, the system interferes with the value through supply and demand.
A few weeks ago, COTI, the platform that issued Djed announced the transition to a multi-chain network for the asset. This would add support for private payment networks and simultaneously bring down deposit fees to half. According to COTI, the changes could significantly help the mass adoption of crypto assets as payment.
“This launch signifies a massive step for the crypto industry, as well as COTI, as the [upgrade] will increase the growth of the widespread adoption of crypto payments for enterprises that are yet to adopt crypto payment solutions.”
They had a successful security audit before the official launch. With that, COTI took to Medium to announce that a “new ear” is on its way.
“The much anticipated public mainnet launch of Djed heralds a new era for stablecoins. Launching Djed is a significant milestone for COTI, the Cardano ecosystem, and for the DeFi ecosystem as a whole. Being a decentralized open-source protocol, Djed is community-driven, as it brings an opportunity for users to hold, mint, and burn DJED and SHEN.”
To be honest, I do not know how to handle all the good news about Djed stablecoin. On one hand, it’s going to start a new ear and on the other, it is a big milestone for DeFi. Personally speaking, I will pray and give thanks to the algorithm gods!