A new stablecoin is coming to the Cardano blockchain to provide a tool for decentralized financial operations (DeFi) and avoid transaction fees.
Cardano’s payment gateway provider Coti becomes the official publisher of Djed, a new DeFi-focused stablecoin for the Cardano network, announced Cardano founder Charles Hoskinson and Coti CEO Shahaf Bar-Geffen at the Cardano summit on Sunday.
The new stablecoin will be based on an algorithmic design that uses smart contracts to maintain price stability and provide an instrument for DeFi transactions..Â It should pay transaction fees in the Cardano network in order to avoid “volatile and exorbitant gas fees” and to make the transaction costs “more predictable”.
According to Djed’s research paper published in August, its stablecoin protocol will act like an “autonomous bank that buys and sells stablecoins at a price in a range that is tied to a target price”.The stablecoin operates by maintaining a reserve of base currencies while minting and burning various other stable assets and reserve currencies.
According to Hoskinson, the Djed stablecoin could be a game changer in the cryptocurrency industry as it attracts many “Completely new audiences at a time when the industry is already experiencing astronomical growth”.TO
The news comes shortly after Coti partnered with Cardano’s stablecoin hub Ardana to bring decentralized stablecoin payments to AdaPay, a Cardano (ADA) payment gateway that supports more than 30 fiat currencies