Since the crash of the algorithmic stablecoin Terra (LUNA) in mid-2022, many users of the crypto sector have expressed a certain aversion towards this particular asset class. The algorithmic stablecoin market is down 10x from its all-time high before the Terra bankruptcy.
However, that hasn’t stopped Cardano developers from launching the ecosystem’s over-collateralized stablecoin Djed (DJED) today. Available on the Cardano mainnet, it is pegged to the US dollar and backed by Cardano’s native currency (ADA). Use the SHEN token as a reserve currency.
According to the announcement, the new token – which has been in development for over a year – has recently successfully completed a security audit. DJED is a product of Coti, developer of decentralized financial solutions (DeFi) on the Cardano blockchain, such as tool for new opportunities in DeFi and payment.
Cointelegraph reached out to the developers for further comments.
Before the launch of the new Cardano stablecoin, the idea of proposing another algorithmic stablecoin caused quite a stir in the crypto community.
Related: Buterin: How to create secure algorithmic stablecoins
Among the latest updates to the Cardano network, Charles Hoskinson announced on January 12 that the ecosystem will expand through custom sidechains.
However, on January 23, due to an anomaly, 50% of Cardano’s nodes went offline and had to restart, causing a network outage. This happened just a week before the launch of the new algorithmic stablecoin.
In early 2023, Bloomberg reported that risk assessment firm Moody’s Corporation is developing a scoring system for stablecoinswhich will include an initial analysis for up to 20 digital assets.
