Specifically, Cardano’s payment gateway provider – Coti – will reportedly be officially in charge of the issuance work for Djed – a new DeFi-centric stablecoin on the Cardano network, as revealed by the network’s founder, Charles Hoskinson, and Head of Coti – Shahaf Bar-Geffen.
The freshly rolled out stablecoin will reportedly be built upon an algorithmic design, employing smart contracts to achieve price stability, as well as offering a medium facilitating DeFi transactions.
The stablecoin is reportedly built with a target of covering payments for transaction fees on the Cardano network, in an attempt to steer away from “volatile and exorbitant gas fees”, together with amplifying the predictability of transaction costs.
As detailed in Djed’s research paper published in August 2021, its stablecoin protocol will reportedly operate as an “autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.”
The stablecoin will normally function via maintaining a reserve of base coins, and simultaneously mint and burn a variety of other stable assets and reserve coins.
Per Hoskinson, the Djed stablecoin has the ability to revolutionize the crypto sector, since it caters to an “entirely new audience at a time when the industry is already experiencing astronomical growth.”
The development reportedly surfaced not long after Coti established an alliance with Cardano’s stablecoin hub, Ardana, to make decentralized stablecoin payments available across AdaPay – a Cardano (ADA) payment gateway offering facilitating features for more than 30 fiat currencies.