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The founder of Cardano, Charles Hoskinson, shared with Twitter subscribers new details of the progress of the launch of Djed. This is an algorithmic stablecoin smart contract of the network, created by the developers of the IOG blockchain, in conjunction with the COTI project.
Analysts believe Cardano’s Djed could play the same role as the UST stablecoin for Terra, which has raised its market cap to 9th in CoinMarketCap’s rankings.
Charles Hoskinson announced that IOG are ready to submit the first integration of the coin to COTI in a few days. This platform is already working with the ADA Pay payment system, which allows you to speed up exchanges and settlements in cryptocurrency.
Now COTI has integrated oracles for delivering the Djed course. The issue of this coin, which automatically adjusts its peg to the dollar, will be governed by a smart contract running on the Plutus network.
In the future, Djed will become the main unit of account for gas on the blockchain for ADA transfers. Moving to direct dollar-based fees and on-net miner rewards will change the Cardano ecosystem. Obviously, investors are positive about this idea, the ADA rate rose by 4% per day, returning to the highs of the week.
Today’s growth may continue with the pump – active speculative buying of ADA at the time of Djed integration. The topic of algorithmic stablecoins is now relevant to the cryptocurrency market in light of possible significant restrictions for tokens tied to real fiat collateral.
The US Treasury is able to restrict their use at the legislative level, after the FSOC Oversight Council recognized them as a threat to the financial stability of the American economy. According to the Dodd-Frank law, Congress is obliged to legislatively respond to the threat or the Treasury will independently adopt its own rules.
They boil down to a ban on issuing stablecoins without a banking license. In this case, exchanges will be forced to switch to the algorithmic version of tokens. To date, only two of their types have been promoted – DAI and UST.
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