Djed, Cardano’s over-collateralized algorithmic stablecoin, will be live on mainnet in January 2023 following a successful full audit. The scheduled launch is a great milestone coming days after Shahaf Bar-Geffen’s announcement about the stablecoin on the main stage at the Cardano Summit.

To make the announcement, Shahaf Bar-Geffen, COTI’s CEO, said:

“Djed going to public mainnet is a great achievement, following a lot of hard work from IOG and COTI. Recent market events have shown that volatility is a problem. Djed will be this safe haven within the Cardano network. We need a stablecoin that is not only decentralized but also has on-chain proof reserves. Djed is just that and I see it becoming the top stablecoin on the Cardano network, considering all of the integration partnerships already signed for it.”

Cardano remains prudent as the launch approaches

Following the Terra LUNA crash that resulted from the de-pegging of their native algorithmic stablecoin Terra USD (UST), Cardano has assured investors that they have been very prudent in the way they approach the release of their stablecoin. They had to ensure that the stablecoin was released on the mainnet with a thorough audit and other rigorous stress tests.

Cardano has also said that it will adopt a gradual and slow approach to providing ADA liquidity to the Djed smart contract. Cardano will be able to grow stablecoin slowly and at a slower pace.

Once the Djed launches, it will be integrated to select top Cardano partners for additional use cases.

Djed stablecoin features

Djed ($DJED), an algorithmic stablecoin that is over-collateralized and powered by COTI, was built on Cardano. It will be pegged at USD and backed with ADA.

It will use SHEN to be its reserve coin.

$DJED’s algorithm is based on a collateral ratio within the range of 400%-800% for $DJED and $SHEN in order to ensure there’s enough $ADA in the pool.