COTI to issue Djed stablecoin on Cardano

Original author:

Anthony Quinn - Editor

Originally published on IOHK.io: September 26, 2021

Summary:

Innovative coin for the fast-growing ecosystem announced today at Cardano Summit 2021

Article:

At the Cardano Summit stage in Laramie, Wyoming, on Sunday, Charles Hoskinson and Shahaf Bar-Geffen announced that the COTI platform would be the official issuer of Djed, a new stablecoin for Cardano.

Djed is based on an algorithmic design that uses smart contracts to ensure price stability. Smart contract programming is also used to ensure that the stablecoin will work effectively for decentralized finance (DeFi) transactions. 

Djed operates by maintaining a reserve of base coins, while minting and burning various other stable assets and reserve coins. It is designed to be used for paying transaction fees on the Cardano network. One benefit of this is to make transaction costs more predictable, so avoiding volatile and exorbitant gas fees for users. 

The COTI development team believes that stablecoins are a 'killer app' that will be adopted by a large number of crypto users for settling payments and covering fees. The company was the first recipient of equity investment from the cFund for Cardano developments. 

Shahaf Bar-Geffen, chief executive of COTI Group, said: 'The stablecoin ecosystem has matured tremendously over the past few years. Blockchain participants are using stablecoins to engage in everyday transactions because they allow monetary value to be exchanged in a seamless manner, regardless of the sender and recipient’s location.

'I believe that adding the Djed stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform.' 

IO Global chief executive Charles Hoskinson said: 'The Djed stablecoin could be a game-changer in the crypto space, appealing to an entirely new audience at a time when the industry is already experiencing astronomical growth. Djed shares our commitment to formal verification, proving a robust method of combating price volatility of crypto markets.

'COTI has been a long-time partner of the Cardano ecosystem. It’s great to have them on board with this new venture.'

Check out the Djed website.