September 27th, 2021 at 7:24 am UTC · 2 min read
Charles Hoskinson, the Founder of Cardano (ADA), one of the world’s largest blockchain platforms, revealed during the Cardano Summit that COTI will serve as the official issuer of a new stablecoin, based on the Djed stablecoin protocol, for the fast-growing Cardano ecosystem.
The Djed stablecoin protocol is based on an algorithmic design, which leverages 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 letting users mint and burn stablecoins and reservecoins. According to its creators, there are ongoing discussions about making an implementation of Djed on Cardano provide stablecoins with which Cardano’s network usage (transaction) fees could be paid through the “Babel fees” approach.
Shahaf Bar-Geffen, CEO at COTI Group, stated:
“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-based stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform.”
Charles Hoskinson, CEO of IO Global 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.”
COTI is a fully encompassing “Finance on the blockchain” ecosystem, specifically designed to meet the challenges of both centralized finance (fees, latency, global inclusion and risk) and Decentralized Finance DeFi (fees, clogging and complexity) by introducing a new type of DAG based base protocol and infrastructure that is scalable, fast, private, inclusive, low cost and is optimized for finance.