A new stablecoin is coming to the Cardano blockchain to provide a tool for decentralized finance (DeFi) operations and avoid transaction fees.
Charles Hoskinson, Coti founder and CEO, Schaff Bar Geffen, announced at the Cardano Summit on Sunday that Cardano’s payment gateway provider, Coti, will be the official issuer of Djed, a new DeFi-focused stack coin for the Cardano network.
The new stable will be based on an algorithm scheme that uses smart contracts to ensure price stability and provide a tool for DeFi transactions. Stablecoin is designed to pay transaction fees on the Cardano network to avoid “exorbitant and volatile gas fees” and to make transaction costs “more predictable.”
According to a research article by Jed published in August, its stablecoin protocol will act like “an independent bank that buys and sells stablecoins at a price in an area linked to a target price.” Stablecoin will work by holding a reserve of base currencies while hitting and burning other fixed assets and reserve currencies.
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According to Hoskinson, Djed’s stable value could be a change agent in the cryptocurrency industry as it reaches “a whole new audience at a time when the industry is already experiencing astronomical growth.”
The news comes shortly after Coti partnered with Cardano’s Stablecoin hub, Ardana, to bring decentralized stable payments to AdaPay, Cardano’s (ADA) payment gateway that supports more than 30 fiat currencies.