To begin, the COTI team has announced the launch of the public Tesnet version of Djed — a decentralized algorithmic stablecoin based on the Cardano network – in cooperation with the Cardano team. The Testnet environment will allow the key functionality to be tested without the risk of using real money.
Shen, a reserve coin specifically created to guarantee the collateralization rate and the peg of the stablecoin, will sustain Djed’s stability.
Djed has been under development since September 2021, with the goal of being “the ultimate token with which Cardano’s whole network transaction costs will be paid.”
Second, the IOST team has revealed plans to produce an algorithmic stablecoin that addresses the three issues below. These include ensuring the accuracy of Oracle price feeds, managing scarcity to maintain price stability and deal with deflationary costs, and developing a short-term price arbitrage model to reduce short-term price volatility.
The IOST team hopes to ‘leverage its strong community of hundreds of thousands of users, underpinning excellent technical support, and the increasingly mature multi-chain ecosystem, which provides a good platform for the next decentralized algorithm stablecoin.’
The IOST Foundation has also increased its financing and resources for the network’s multi-chain ecosystem in order to make its algorithmic stablecoin known for its high annualized interest rates and lower risks than its competitors.
The announcements of Cardano and IOST establishing algorithmic stablecoins follow Tron’s introduction of USDD and Terra’s purchase of $1.5 billion in Bitcoin as reserves for its UST stablecoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
Miami, Florida, 5th November 2024, Chainwire
Want to learn about Bitcoin and Chainlink's prices? See why BlockDAG with its X1 app…
New ATH for Bitcoin’s average hashrate, combined with Bitcoin mining difficulty surpassing 100 trillion hashes,…
Bitcoin's price rose 3% to $70,200, influenced by excitement surrounding the US presidential election.
NY, United States of America, 5th November 2024, Chainwire
This Coincu's article presents a curated list of the top DePIN crypto projects with airdrop…
This website uses cookies.