Coti, Cardano’s payment gateway provider, is set to launch a new DeFi-focused stablecoin, Djed. The stablecoin will be launched on the Cardano blockchain to enable decentralized finance operations while avoiding transaction fees. The official announcement was made on Sunday by Coti CEO Shahaf Bar-Geffen and Cardano founder Charles Hoskinson at the Cardano Summit.
Djed will use algorithms and smart contracts to provide price stability and an instrument for decentralized transactions. The stablecoin will be used as an alternative for paying for transaction fees on the Cardano network so that users can escape exorbitant gas fees and ensure transaction fees are predictable.
According to its whitepaper, the stablecoin protocol will act as an autonomous bank such that the stablecoins trading price reflects the target price. It will be the responsibility of the stablecoin to ensure it has a reserve of base coins while at the same time creating and burning the different stable assets and reserve coins.
According to Hoskinson, Djed is very strategic and timely in aligning itself to the market’s needs. There is a current high demand for stablecoin, making it experience astronomical growth; hence it is bound to grow.
This is not the first time Coti is making strategic partnerships. It recently partnered with Ardana, Cardano’s stablecoin hub, to ensure decentralized stablecoin payments to AdaPay.AdaPay is a Cardano(ADA) payment gateway that supports over 30 fiat currencies.
The rise of Cardano
Cardano has been hitting the airways lately. It had a hard fork mainnet upgrade its services. The upgrade made it possible for the platform to offer smart contracts, making it at par with Ethereum and Solana. Since the upgrade, there are currently over 200 smart contracts listed on the Cardano blockchain explorer.
As expected, COTI’s announcement of the partnership has spiked its price up. Since the announcement, the token price increased by 3.21% in a day. There is so much positivity expected in the market.