To provide decentralized stablecoin payments to AdaPay, Coti previously teamed with Cardano’s stablecoin hub Ardana.
Cardano founder Charles Hoskinson and Coti CEO Shahaf Bar-Geffen revealed on Sunday at the Cardano Summit that Coti, Cardano’s payment gateway provider, will be the official developer of Djed, a new DeFi-focused stablecoin for the Cardano network.
To provide price stability and provide an instrument for DeFi transactions, the new stablecoin will be built on an algorithm structure employing smart contracts. The stablecoin will be used to pay transaction fees on the Cardano network, avoiding volatile and excessive gas expenses and making transaction costs more consistent and predicted in an easier manner.
Djed’s stablecoin protocol, per a research paper published in August of 2021, will act as an autonomous bank that buys and sells stablecoins at a price in a range that is tethered to a specific target price. The stablecoin will function by minting and burning various stable assets and reserve coins while keeping a reserve of base currencies.
Hoskinson supports that the Djed stablecoin might just be a breakthrough in the cryptocurrency industry since it appeals to a completely new market at a time when the industry is booming.
This affiliation announcement comes after the recent project that Coti and Cardano cooperated in. Ardana, the stablecoin hub of Cardano enables decentralized payments of more than 30 fiat currencies to AdaPay.