Cardano Gets Ready For DeFi Assault; Reveals New Stablecoin

Cardano has been making lots of headlines these days due to various improvements that the project has been seeing and due to the price of ADA coin as well.

Cardano is close to final HFC event

It’s been just reported that Cardano is close to its final Hard Fork Combinator (HFC) event, “Alonzo,” to implement smart contract capabilities on the mainnet.

Dev, community projects, and IOG are gearing up for the milestone and the potential growth of the network’s ecosystem.

Recently, IOG released a paper that’s focused on addressing a new algorithm stablecoin to be launch on the platform, called Djed.

Djed algorithmic stablecoin

As the online publication NewsBTC notes, the project has been under development by IOG and partners Emurgo, and Ergo blockchain, as a “stablecoin contract”, Cardano’s developer said in an official post.

It’s also been reported that this digital asset will tackle the most common issues with other stablecoins, such as Tether and USD Coin.

These will include the lack of transparency about their reserves and their liquidity.

More than that, it’s important to note that it will leverage a smart contract to guarantee the stability of its price. IOG said the following:

“Djed is a crypto-backed algorithmic stablecoin contract that acts as an autonomous bank. It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins.”

The online publication mentioned above notes that the Cardano-based stablecoin will operate with an Autonomous “Central bank like” contract. It’s also been reported that it will be comprised of reserve, equity, and liabilities.

“But Djed is not limited to being pegged to the dollar. It can work with other currencies, as long as there are oracles providing the contract with the corresponding pricing index.”

Stay tuned for more relevant news from the crypto space.

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