- Cardano had the Vasil Hard Fork event in September.
- Djed is supposed to peg with US dollars.
- It will be backed by $ADA and $SHEN.
Amidst the FTX saga, one of the most interesting events that took place was the Cardano Vasil Hard Fork. The hard fork event is when a network splits into two separate parts where one version follows the old existing features and the new one continues on the upgraded version.
Another stablecoin is coming into existence named $DJED. It is all set to go live on the ADA mainnet in January 2023 after it successfully undergoes rigorous tests and auditing.
According to the developers, the Djed will be pegged to USD while backed by Cardano $ADA. $SHEN will also be used as the reserve coin for the system. The proof-of-stake blockchain platform Cardano collaborated with COTI, a layer 1 protocol based on DAG, to work on the new stablecoin project.
As per the latest announcement by CoinTelegraph, the ambitious project will be backed by excess collateral in the form of crypto assets stored in reserves.
Djed is an algorithmic coin and exclusively uses smart contracts to ensure its peg and price stabilization; the coin is said to be suitable for Decentralized Finance (DeFi) operations. Basically, it operates by keeping a huge reserve of base coins, minting and burning stablecoin and reserve coins as and when the need arises.
It is primarily designed to pay the transaction fees on the Cardano network, adding to the benefit of making the transaction cost more predictable and avoiding volatile and exorbitant gas fees for the users. This algorithmic stable coin will be integrated with selected partners and DEXs, allowing them to reward the users for providing much-required liquidity for Djed.
Again according to Cointelegraph, with every means in place to grow sustainably healthy, the project’s developers are planning to adopt a slow and gradual process in providing $ADA liquidity to the Djed smart contracts.
With the prices somewhat lower than the other altcoins, Cardano keeps innovating and improving its ecosystem. This slow and steady pace is taking it closer to a position where it can dethrone Ethereum.
The Cardano Vasil hard fork went live in September this year, the logical and rational step in improving the scalability and speed of the network. With this latest upgrade, the developers hope to improve the much-required efficiency of smart contracts, making the Cardano network faster and cheaper.
Many such Ethereum killers have surfaced in the past, but none succeeded. Only time will tell if, Cardano with it new found vigor will be able to dethrone Ethereum.