The Coti network team confirmed that Djed stablecoin will enter the Crypto market by the next week, which means early February of this year.
Djed stablecoin is an algorithmic concept-based stablecoin, which was initially proposed by the Cardano founder Charles Hoskinson in mid-2021. Hoskinson also released a paper for this coin to prove by the mathematical theorem that Djed will remain stable in every high sell pressure situation.
Recently Coti network, a team behind the Djed coin development, announced via a new blog post that Djed was already introduced in the blockchain execution process 15 days ago and now the execution will complete within the next week.
The Coti team is not sure about the date but expects that 1 Feb 2023 could be the final date for this stablecoin to come into full life.
DJED, TerraUSD & Criticism
As we know that Djed is a project from the Cardano team but the Cardano team handed over the development work to the talents of the Coti team.
In May 2022, During very high volatility in the Crypto market, TerraUSD stablecoin collapsed badly. TerraUSD was also an algorithm-based stablecoin, which was integrated with the trade volume of Terra’ Luna coin. But both of the coins collapsed badly.
After the downfall of TerraUSD stablecoin, many people noted that Cardano’ Djed stablecoin is also an algorithm and will surely face a similar kind of downfall in the future.
Cardano founder Charles Hoskinson talked about this thing and said that perhaps Djed stablecoin is based on a perfect algorithm but still the management team behind this stablecoin will hold huge amounts of funds to fight against any challenge easily.
A week ago, the Coti team also talked about this thing and said that Djed stablecoin will be overcollateralized by 300% to 400%.