Cardano-Based Algorithmic Stablecoin “Pretty Close,” COTI Founder Says

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Alex Dovbnya

COTI Network head Shahaf Bar-Geffen says that he is “really excited” about launch of upcoming product

During a recent podcast appearance, Shahaf Bar-Geffen, chief technology officer at blockchain-based COTI Network, said that Djed, a Cardano-based algorithmic stablecoin, would be launched soon.

Bar-Geffen initially announced that the algorithmically-backed stablecoin would be launched in January 2023 at Cardano Summit last month.

As reported by U.Today, the stablecoin was in the final stages of development in September. It became available for testing with enhanced functionality earlier this month.

According to Bar-Geffen, the team had to make sure that the stablecoin was compatible with the Vasil upgrade.

On top of that, the project has already conducted two “rigorous” audits. “The one thing that we can’t fail on is security…If people are not interested in the product…I can live with that. I can’t live with leaving security vulnerabilities…This is why it took a bit more time.”

Investors’ faith in algorithmic stablecoins was shaken by the collapse of TerraUSD (UST) back in May. Several similar projects also went underwater prior to Terra, which highlights a systemic risk.

Following its release, Djed stablecoin will be integrated into a bunch of decentralized finance protocols.

It is challenging to predict how successful Djed is going to be. Ardana, Cardano’s leading stablecoin project, was shut down last month due to funding problems. Input Output CEO Charles Hoskinson said that it was “distasteful” on the part of the management of these projects to blame Cardano for their failures.