Since the TerraUSD (UST) algorithmic stablecoin fell in May 2022, many users in the crypto space have grown weary of this particular asset class. The algorithmic stablecoin market has fallen 10x from its all-time high before Terra crashed.
However, that didn’t stop Cardano network developers from launching the ecosystem’s over-collateralized stablecoin on Jan. 31. The new algorithmic stablecoin Djed (DJED) launched on the Cardano mainnet and is pegged to the US dollar and backed by Cardano’s native cryptocurrency, It uses the Shen (SHEN) token as a reserve token.
According to the announcement, the new token recently successfully completed a security audit and has been in development for over a year. DJED is a product of Coti, a developer of decentralized finance (DeFi) solutions on the Cardano blockchain, as a means to new DeFi and payment opportunities.
It’s the latest in a string of recent updates to the Cardano network, including co-founder Charles Hoskinson’s Jan. 12 announcement that the ecosystem would expand through custom sidechains. On January 23, due to an abnormality, 50% of the Cardano nodes were disconnected and had to be restarted, resulting in network interruption. This comes just a week after the launch of the new algorithmic stablecoin.
In early 2023, Bloomberg reported that risk assessment firm Moody’s was developing a stablecoin scoring system, including an initial analysis of as many as 20 digital assets.
