What To Expect As Cardano-Based Overcollateralized Stablecoin Djed Is Set To Go Live ⋆ ZyCrypto

• COTI revealed that Djed will launch for the mainnet this week.
• The long-awaited algorithmic stablecoin is poised to drive new adoption to the Cardano network.

Djed, the flagship Cardano blockchain native overcollateralized stablecoin, is set to launch this week. COTI, the layer 1 blockchain network that co-developed Djed with core developer Cardano IOG, unveiled new details of the launch.

COTI noted in a blog post that ADA-backed stablecoins will be implemented on the mainnet once the index chain synchronization is complete. The technical process took about 14 days to complete and started last week, COTI said.

“We started the chain index synchronization process. This process may take up to 14 days, and while we started syncing a week ago, we expect to complete it by next week and be ready to roll out. As of now, this is the only technical hurdle hindering the launch,” said the post.

The post also highlights technologies that will be added to the stablecoin with post-launch updates. L1 network developers are building a snapshot mechanism and UI for the Djed web page, Djed.xyz. This feature will enable SHEN holders to track prizes earned from ADA that are staked in the Djed contract.

Likewise, the ability to cancel orders has been added. The feature will allow users to click the refund button to cancel their transaction “as long as it has not been processed.”

Meanwhile, Djed will also be listed on the exchange at launch, COTI also revealed. Centralized exchange Bitrue has announced that DJED and SHEN — the stablecoin reserve currency — will be listed on its spot market upon launch. COTI noted that Djed’s decentralized exchange (DEX) partner, Wingriders, also hinted at a stablecoin listing.

What does Djed bring to the Cardano network?

Cardano fans have been looking forward to the dollar-pegged stablecoin, which IOG and COTI talk about as “the first stablecoin protocol in which stability claims are precisely and mathematically stated and proven.” Djed is expected to maintain stability by 400% to 800% overcollateralized at all times.

Djed will, for example, operate as a decentralized bank with multiple use cases. COTI has developed Djed Pay to allow users to pay vendors with stablecoins. Other use cases include alternative banking, lending, and remittances.

Stablecoins are also expected to be widely integrated throughout the Cardano ecosystem. Several DEX and NFT marketplaces are already working towards their integration.

Furthermore, Djed will eventually become the token in which all Cardano gas fees are paid as per the plans disclosed by IOG. This will allow for uniform and predictable transaction costs rather than having volatile gas fees.

Meanwhile, amidst the latest update by COTI, the price of ADA is surging along with the surge in the broader crypto market. ADA is up 3.60% in the last 24 hours, trading around $0.39 at the time of writing.