The Cardano blockchain gears up to see the launch of one of its most anticipated stablecoin projects, Djed. Shahaf Bar-Geffen, the head of COTI Network, reiterated during an interview that the algorithm stablecoin would launch on the mainnet in January.
Speaking with popular Cardano-focused podcaster, ‘bigpey,’ Shahaf stated:
“Next month is our goal to launch the mainnet of Djed and Shen. Right now, you can play with the testnet on Djed.xyz.”
Bar-Geffen notes that the launch took this long because developers wanted to ensure that the stablecoin integrates with Cardano’s Vasil hardfork. Conducting audits also added to the delay of the launch. According to the COTI CEO, developers conducted two rigorous audits to test the security of the stablecoin’s smart contract.
“One thing we cannot fail on is security. If people are not interested in the product…, I can live with that. I can’t live with leaving security vulnerabilities in the code without doing everything that we could to make sure that we block all hedges,” he said.
Meanwhile, he also revealed that COTI and IOG would open-source the highly complicated smart contract that powers the stablecoin shortly after launch. COTI first announced the January launch timeline of Djed during the Cardano Summit back in November.
Djed is already poised to gain adoption in the Cardano ecosystem
The Djed algorithmic stablecoin launch comes with many perks to the Cardano blockchain. Djed boasts of being backed by only cryptocurrencies — including SHEN, its reserve currency, and ADA, the native token of Cardano.
The stablecoin could likely see very rapid adoption due to the fact that it is overcollateralized and has an on-chain proof-of-reserve. COTI already partnered with several Cardano decentralized finance protocols to integrate the stablecoin at launch.
However, this expectation may not play out for several reasons. For one, trust in algorithmic stablecoins has been notably low in the crypto space since the crash of Terra’s UST and its sister token, LUNA.
Similarly, other stablecoin projects that will compete with Djed are also under development in the Cardano ecosystem. Notably, some of these projects have also run into their own problems.
Last month, Ardana, a company developing a fiat-backed fully reserved stablecoin for the Cardano ecosystem, shut down due to funding problems. Charles Hodkinson, the IOG CEO, commented that it was unfortunate how the project went down. He, however, remains optimistic that more projects will spring up as Cardano grows to become an ecosystem of blockchains.