Cardano has announced that it will launch its algorithmic stablecoin, Djed, in January 2023.
What is the Market Situation?
After the new bill that will pave the way for Bitcoin bonds from El Salvador and the statements of Binance CEO CZ, cryptocurrencies started to rise on a small scale. Bitcoin has gained more than 5% in the last 24 hours, while the leading altcoin Ethereum has appreciated over 6%. ADA, which gained more than 5% value in the last 24 hours with the recovery of the market and the new development it announced, continues to be priced at 31 cents.
Cardano Makes Date for Djed
The Cardano ecosystem continues to grow. Cardano has partnered with COTI to launch Djed, the collateralized algorithmic stablecoin. The djed stablecoin will be an over-collateralized algorithmic stablecoin backed by a Bitcoin reserve. If all goes well in audits and upcoming tests, the Djed mainnet is scheduled to be available in January 2023. According to the developers, Cardano-backed Djed will be backed by Cardano’s native crypto assets ADA and SHEN, as well as pegged to the US Dollar.
Commenting on the subject, COTI CEO Bar-Geffen said: “Recent market events have proven once again that we need a safe haven from volatility. Djed will serve users as a safe haven in the Cardano network. We need not only a stablecoin, but also decentralized and on-chain proof of reserve.” He used his expressions.
The algorithmic stablecoin will be integrated with selected partners and decentralized exchanges that will reward users who provide liquidity using Djed. The developers plan to take a gradual and slow approach to providing ADA liquidity to the Djed smart contract in order to move at a healthy and sustainable pace.
The Djed team is also working on creating a payment platform and cryptocurrency gateway called Djed Pay. This payment gateway will receive the support of the Cardano Foundation and elevate its status among businesses. The launch of Djed could have positive repercussions for Cardano, including the development of decentralized finance on the network.
COTI Sets Roadmap for Djed
According to the information provided by the developer team COTI:
- Djed version 1.1.1 will be released in January and will include Vasil hard fork compatibility and oracle upgrade to support 6 external sources. This version will be released as a beta version with limited liquidity that will be increased in future releases.
- Version 1.2 will be released later. Until then, Djed will be using Vasil features, including a reference script that will increase its scalability.
- Djed 1.3 will be the extended Djed version that will offer dynamic fares and prices. Staking will also be supported, which will lead to substantial liquidity provision.
While ADA’s price hasn’t seen much movement lately, development activity and the latest announcement suggest that this may change. Currently, there is a broad bear trend in the cryptocurrency market, but projects like Cardano that are still rising despite the trend may gain more popularity when the trend reverses.
ADA Price Analysis
If the ADA price continues to rise, the first resistance point it will encounter is at 34 cents. If ADA manages to break the 34 cent level, the next resistance level is at the 40 cent point. In the event of a retracement of the ADA price, the support levels to be followed are 30 cents and 27 cents.
