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Cardano's new stablecoin Djed launches

With Djed, Cardano expanded its portfolio on January 31 with a new algorithmic stablecoin.

By Luc Vesters
• 2 min read
Cardano's new stablecoin Djed launches

With Djed, Cardano expanded its portfolio on January 31 with a new algorithmic stablecoin. The cryptocurrency is pegged to the U.S. dollar and is backed by its own token (ADA), with the SHEN token as the reserve asset.

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The Djed comes from the DeFi project COTI and is therefore part of the Cardano ecosystem. It is primarily intended to be used as a means of payment in the DeFi sector. "The long-awaited public mainnet launch of Djed marks a new era for stablecoins. The launch of Djed is a major milestone for COTI, the Cardano ecosystem, and for the DeFi ecosystem as a whole," says the company.

Algorithmic stablecoins have long been the subject of hard criticism. After Terra Luna's collapse last year, many investors lost confidence in algorithmic collateral.

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