- Cardano (ADA) stablecoin is set to be launched in the upcoming week.
- The native coin of Cardano, ADA, will be used as collateral to mint the stablecoin.
- The price of ADA dropped by around 6.97% in the last 24 hours.
The launch of the Cardano stablecoin Djed finally announced on January 25th, 2022. But the date is still not confirmed.
Cardano Stablecoin (Djed)
COTI Network is a DAG-based Layer 1 that is developing the Djed stablecoin. It shared a tweet that says the launch is scheduled for next week. However, the date of launch is not yet decided but as per their previous blog post the launch will be before the end of this month.
According to the COTI, the chan index syncing process is delaying the launch. The process began a week ago and is scheduled to take 14 days which means the launch date could be around February 1st, 2023.
Along with DJED, the balancer coin of COTI, SHEN, would be listed on the Bitrue exchange. The network further explained that a snapshot mechanism and user interface that is being developed will track rewards.
COTI added in its Medium blog post that “as part of their effort to stake the ADA that is deposited to the Djed smart contract and generate extra rewards for $SHEN holders, they are developing a snapshot mechanism and UI that will be added to djed.xyz, where $SHEN holders will be able to track these extra rewards.”
It must be noted that ADA is sent to the stablecoin smart contract in return for DJED. While the third token, SHEN, manages the price fluctuation of ADA as the balance. Thus the stablecoin will be over-collateralized with ADA. Djed is over-collateralized by 400% to 800%, which means it has 4 to 8 times more underlying value backing it, than the total sum of Djed minted, as COTI explained.
Cardano (ADA) Price Action
From last month, the price of ADA surged from almost 44%. At press time, the Cardano price is $0.354134 with a 24-hour trading volume of $407.34 Million. Cardano is down 6.97% in the last 24 hours, with a current market cap of $12.24 Billion.
Even after the price drop in the last 24 hours, the sentiments are still bullish for ADA tokens.
Source: https://www.thecoinrepublic.com/2023/01/25/the-launch-of-cardano-stablecoin-and-ada-price-action/