Cardano Stable Coin Djed May Soon Be Availible On Popular Cardano DEX
WingRiders are already in partnership with COTI to integrate Djed At launch.
In a tweet yesterday, WingRiders, a leading Cardano decentralized exchange, teased an announcement with COTI, issuers of Djed, Cardano’s stablecoin, sparking speculation of an important Djed development.
👀$DJED $WRT $COTI https://t.co/07izSyetxB
— COTI (@COTInetwork) January 20, 2023
It bears mentioning that COTI already announced a partnership with WingRiders last August to integrate the stablecoin into the DEX at lunch.
Notably, the latest teaser comes just after WingRiders introduced its “StableSwap” feature. Described as a middle ground between the constant product and constant price function, WingRiders says the new feature will allow for swaps of stablecoins within a stable swap pool with reduced risk of impermanent loss, which usually occurs with the constant product function when there is an imbalanced supply causing the price of one asset to rise or fall relative to the others in the pool.
Per a recent update, COTI has confirmed that developers are on track to launch the stablecoin in January, as revealed last November. In addition, the Cardano stablecoin issuer has disclosed that developers are working to enable Djed staking at launch as an extra incentive to holders of SHEN, Djed’s reserve currency.
The team is also enhancing internal monitoring tools and integrating Elliptic services to ensure that Djed is regulatory compliant. While the team disclosed that it encountered a chain index bug that caused a delay in order processing, it asserted that it was a minimal issue that required only a couple of days to fix.
For context, Djed is an over-collateralized algorithmic stablecoin similar to DAI, which maintains its dollar peg with an excess supply of a reserve currency through a mint and burn mechanism. In the case of Djed, developers say the stablecoin will maintain a 400% to 800% SHEN collateral ratio, as reported last November.
In November, COTI also revealed that the stablecoin would launch this month after a full audit.
The Cardano network will collect all fees in Djed after launch, and users will also be able to use it to pay for things like NFTs, thanks to partnerships established by COTI.