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The Djed stablecoin should lead to new growth and new use cases in the Cardano ecosystem's fast-growing decentralised financing space (challenge). In recent weeks, developer djed, coti network, said the stablecoin will most likely be released in January.
In the cardano area, however, There has recently been speculation about the state of preparations for the introduction of stablecoin, announced in November of this year, have progressed. To dispel the speculation, COTI has now published a new blog post confirming the launch within the next week. However, an exact date has yet to be determined.
"We are pleased to provide you with another update on djed's progress and to let you know that the launch is planned for next week," says the announcement.
In addition, COTI announced that cryptocurrency exchange Bitrue will list Djed and SHEN. DJ's dex partner wingriders also suggested on twitter that an announcement will be made in the near future.
As for Djed’s technological developments, the COTI team says it has begun the process of syncing the chain index.
“This process may take 14 days, and since we started synchronization a week ago, we expect to finish next week and be ready for launch. Currently, it's the only technical bottleneck that is holding up the launch," says Coti.
In addition, the company is still working on a snapshot mechanism and user interface that will allow tracking of the additional rewards for SHEN holders who deposit and stack ADA into the Djed smart contract.
Is Djed going to revive the cardano ecosystem?
Djed launch comes with high expectations because a stablecoin has not been present in the cardano ecosystem until now. Stability is of vital importance for the implementation of low-cost strategies, in particular in the challenge area.
Djed is also entering a crypto market where stablecoins have become more and more important over the last few years. In the top 10 cryptocurrencies by exchange capitalization, There are no fewer than three stability points, tether (usdt), United States Dollar Coin (usdc), and currency (bus) binance, which are fixed at 1:1 USD and supported by various types of fiduciary currency reserves.
On the other hand, the cardano stablecoin is designed to ensure the stability of its prices by means of in ada reserves. Initially, the team had referred to it as an algorithmic stablecoin but had dropped that wording – presumably given the terrible memories of Terra Luna and its algorithmic stablecoin UST, which was backed by BTC.
COTI calls Djed an overcollateralized stablecoin, whose coverage in ADA is at least four times that of Djed issued. The cardano stablecoin has some similarities with the tron ecosystem (trx), on which the oversized stabilized stablecoin system relies.
However, USDD has also been struggling to defend its peg to USD lately. However, usdd is highly popular. Stablecoin de l'ecosysteme tron has a market capitalization of 716 million dollars. Possibly because of this, Tron’s DeFi ecosystem is much larger ($5.1 billion TVL) than Cardano’s ($73 million TVL), according to DeFiLlama data.
Can the ADA reach $1 after the release of Djed?
If the djed concept works, stablecoin can overwhelmingly stimulate the cardano challenge ecosystem. However, djed first needs to pass the test on the ground. In addition to the massive potential, there is also the potential for Terra-like failure. It could cause serious damage to the cardano ecosystem and the ada price.
But if djed makes it, it might give ada a big push. A look at the cardano day chart shows that the price has come out of a downward trend over eight months and passed a new test in mid-January.
The next big price objective is the area of resistance around $0.41, which served as support for a long time. In the event of a drop in that resistance, $0.75 would be the next target before $1 is on the cards.
