The blockchain of Cardano is getting ready to witness the release of a desperately anticipated stablecoin project called Djed. The chief of COTI Network (the collaborator of Cardano on the development of stablecoins, Shahaf Bar-Geffen, stated in an interview that the launch of the algorithmic stablecoin on the blockchain’s mainnet is to take place in January.
Cardano’s Djed Stablecoin Is to Be Released in January 2023
While making remarks on the move, the COTI chief mentioned that the reason behind such a delay in the stablecoin’s launch is that the developers intended to guarantee that the respective stablecoin has the integration with the Vasil hard fork of Cardano. As per the CEO of COTI, the developers organized a couple of rigorous audits aiming at testing that the security of Djed’s smart contract is completely operable.
As per him, the most prioritized thing is security. He added that the decreased user base can be tolerated however no compromise on security can be tolerated. In the meantime, the CEO disclosed that IOG and COTI would open-source the considerably complex smart contract responsible for operating the stablecoin soon after its launch. Initially, COTI declared the timeline of the stablecoin’s launch in November during the Cardano Summit.
The release of Djed is taking place with several advantages on the Cardano blockchain. The stablecoin boasts of having support by just crypto assets, taking into account ADA (the local token) and SHEN (the reserve currency) of Cardano. It is likely for the stablecoin to witness swift adoption because of its over-collateralization. The token additionally possesses an on-chain proof-of-reserve.
Collaborations have already been carried out by COTI with diverse decentralized finance (DeFi) protocols on Cardano to integrate the algorithmic stablecoin after its launch. Nonetheless, the respective anticipation may not come true because of some reasons. One is that considerably less trust has been shown in the algorithmic stablecoins in the crypto industry since the collapse of the UST and LUNA tokens of the Terra ecosystem.
In the same vein, the rest of the projects of stablecoins that are to contest with this one are additionally going through their development phases in the ecosystem of Cardano. it is noteworthy that a few of the respective projects have additionally experienced several issues. In November this year, Ardana (the entity responsible for creating a fiat-supported stablecoin for the Cardano ecosystem) put an end to its operations because of funding-related issues.
The CEO of Input Output Global (IOG), Charles Hoskinson, commented on this by saying that the ending of the project was very unfortunate. Nevertheless, he is still confident about the projects and considers that they will spike up with the advancement of Cardano as it is attempting to turn into an ecosystem comprising several blockchains.
In the previous month, Cardano notably recorded the peak development activity among the blockchain platforms as it recorded up to 572 created events in the open GitHub repositories thereof. Formerly, it was reported that the network has also seen a gradual increase in its Plutus smart contracts as their cumulative number moved above 300% this year.
IOG Establishes First-Ever Blockchain Decentralization Index
As of the 6th of December, the respective smart contracts contained more than 4,239 scripts. Apart from that, in the previous month, IOG declared establishing the initial blockchain decentralization index of the world. Following that, the group launched an exclusive section specified for the DApp developers related to Plutus.
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