With the launch of Cardano's first algorithmic stablecoin DJED, will it too face the threat of a depeg like UST, FEI and others?
On January 31, COTI announced the introduction of DJED, which is also the original stable currency of Cardano (ADA) Internet. The introduction of Djed stable currency is expected to improve the overall locked value of use (TVL) of Cardano ecosystem, and it claims to be able to provide more reliability and benefits to the holders due to the characteristics of its excessive collateral and cost distribution method.
DJED Stablecoin announced in Cardano
COTI pointed out in the article on the official website that once the chain retrieval synchronization process is carried out, the stable currency encouraged by ADA will be launched on the main network. According to the detailed introduction of COTI, the technical process was run a week ago and will take about 14 days to complete. In addition, the report also describes the technicality of importing into the stable currency after the initial release according to the later upgrade.
In the same way, it also added the effect of canceling cooperation. This function allows users to click the refund button to cancel the transaction, "only the transaction is not solved".
Since the collapse of TerraUSD (UST) optimization algorithm to stabilize the currency in May 2022, many consumers in the cryptocurrency market have been tired of solving the optimization algorithm to stabilize the currency. The sales market of this industry has experienced a sharp decline of ten times as Terra broke down.
Read more:Does the price of Hedera (HBAR) increase by US $1 following this trend?
However, this did not prevent the developers of Cardano Internet from launching stable coins for the ecosystem on January 31. According to the recent notice, the DJED elite team has already carried out extensive scientific research on the system vulnerabilities related to the stable currency of optimization algorithms such as UST, FEI and MIM; And has been committed to protecting cryptocurrencies from the impact of such situations. DJED is applied by Cardano's original cryptocurrency ADA and is linked to the use value of US dollars. Shen (Shen) token is the international reserve currency of the website.
DJED use cases are increasing
First of all, Djed will serve as a blockchain technology financial institution to achieve a variety of different use cases. COTI is now developing Djed Pay, which will allow users to pay merchants in stable currency. Replacing financial institutions, loans and remittances are some other examples of blockchain application use cases. In addition, according to the IOG public release plan, Djed will be converted into a loan currency for the purchase of all Cardano natural gas costs later. It is difficult to predict the price of natural gas, which will make the transaction cost consistent and stable for a long time.
In addition, COTI also confirmed that Djed will be launched on the exchange. The Intermediate Exchange Bitrue recently announced that DJED and SHEN will be sold in the spot market after they are officially launched. In addition, COTI stressed that Wingrid, the partner of Djed's blockchain technology exchange (DEX), also suggested to sell the marquee coins. This is also one of the latest launch of Cardano blockchain technology in a series of recent upgrades. This upgrade includes the announcement of the founder, Charles Hoskinson, on January 12 that the ecosystem will take a customized main chain to expand.

In addition, due to this upgrade, the price of Cardano (ADA) soared, the same as the price of the entire data encryption market. In the past 24 hours, the price of ADA has increased by 4.10%, and the current transaction price is about US $0.39.