Cardano's decentralized stablecoin Djed goes live on mainnet

Quick Take

The Djed stablecoin was released on the Cardano blockchain after over a year in development.
Djed’s value is designed to remain close to the U.S. dollar and is backed by a surplus of Cardano’s native cryptocurrency ADA.

Djed, a decentralized stablecoin designed to track the U.S. dollar, launched on the Cardano blockchain after being in development for over a year. Djed was developed by blockchain firm Coti in collaboration with Cardano's core developer Input Output.

Djed aims to be used on DeFi protocols in the Cardano ecosystem as a stable alternative to volatile cryptocurrencies.

Each stablecoin will be over-collateralized by 400-800% with Cardano’s native asset ADA — while using SHEN as a reserve coin. This over-collateralization makes it similar to the dai stablecoin in the Ethereum ecosystem, but it has a minting and burning mechanism like other algorithmic stablecoins.

Djed is expected to be integrated into 40 apps within the Cardano ecosystem. It already received support from decentralized exchanges MinSwap, Wingriders and MuesliSwap. In November, the Coti team told The Block it had plans to launch DjedPay, a service that will let merchants and other crypto players accept payments in the stablecoin.