A new stablecoin ‘Coti’ is coming on the Cardano blockchain to supply a tool for decentralized finance (DeFi) operations and steer away from transaction fees.
Cardano founder Charles Hoskinson and Coti CEO Shahaf Bar-Geffen announced Sunday at the Cardano Summit that Cardano’s payment gateway provider, Coti, will be the official issuer of Djed, a new DeFi-focused stablecoin for the Cardano network.
For using smart contracts to make price stability certain and supplying an instrument for DeFi transactions the new stablecoin will be adapted on an algorithmic design. The stablecoin is invented for paying transaction fees on the Cardano network to avoid “unstable and excessive gas fees” and make transaction costs “more probable.”
Its stablecoin protocol will act like an “independent bank that buys and sells stablecoins for a price in a range that is pinned to a target price according to Djed’s research paper released in August.” The stablecoin will function by having a reserve of base coins while burning and minting several other reserve coins and stable assets.
The Djed stablecoin could be a game-changer in the crypto industry as it attracts an “entirely new audience at a time when the industry is already undergoing astronomical growth.” According to Hoskinson.
“Today, COTI is doing its first steps in Defi over Cardano, which we trust will be huge. We are very happy to join hands with the remarkable team of Ardana to bring new Cardano Native Assets to ADA Pay and expand our operation,” stated Shahaf Bar-Geffen, CEO of COTI.
“Both COTI & Cardano have a value proposition that is instantly applicable to each of our day-to-day lives, no matter where we may be. When it comes to e-commerce, it is within our sight to have our stable coin being able to participate in all walks of life- from yield farming on-chain to financing certain farming off-chain” stated Ryan Matovu, Founder of Ardana.