Despite the Terra (LUNA) algorithmic stablecoin debacle of mid-2022, which caused cryptocurrencies to plunge drastically from their all-time high, developers on the Cardano network have been undeterred in their pursuit of an overcollateralized crypto asset. On January 31st, Djed (DJED), a USD-pegged coin backed by native ADA and powered by SHEN token reserves, was released on Cardano’s mainnet.
After being in development for over a year, DJED has recently announced the successful completion of its security audit. Developed by Coti—a decentralized financial (DeFi) solutions provider on Cardano’s blockchain—this new token opens up exciting and fresh doors to DeFi and payments.
Before the unveiling of Cardano’s brand-new algorithmic stablecoin, the idea of creating a stablecoin caused a stir within the online crypto community. This is just one of the numerous updates that have occurred in recent times from the Cardano network, with co-founder Charles Hoskinson announcing on January 12th their plans to engineer sidechains for extended development and use throughout their system.
Just one week before the release of the innovative algo stablecoin, an unexpected incident occurred. On January 23rd, 50% of Cardano nodes disconnected and had to restart due to a system anomaly, resulting in network outages. According to reports, Moody’s Corporation is developing a scoring system for different digital assets, including analysis of up to twenty stablecoins.
