On Wednesday, May 4th, the COTI foundation announced that it would be launching the testnet version of its new stablecoin. The stablecoin was built on the Cardano blockchain and is called Djed. The launch of Djed’s testnet will allow users and developers to detect any possible flaws in the token before it is officially launched. The testnet will also be risk-free for users, and the developers will be using trial funds to operate the protocol.
COTI foundation has been working with the Cardano Foundation to build the Djed token for about a year. The hard work has undoubtedly paid off as the UI integration, the configuration management, and the final design of the stablecoin are all set to be used on the testnet.
Commenting on the introduction of Djed to the Cardano blockchain, the CEO of the COTI group said: “The stablecoin ecosystem has matured tremendously over the past few years. Blockchain participants use stablecoins to engage in everyday transactions because they allow monetary value to be exchanged seamlessly, regardless of the sender and recipient’s location.”
The COTI development team sees stablecoins as a game-changer in the crypto space to trigger mass adoption.
Djed is a decentralized token that will have a value pegged to the US dollar. The algorithmic token will be able to maintain a stable value through a combination of reserve tokens and collateral tokens.
The reserve token for the Djed stablecoin is SHED, while COTI is the collateral token.
At the moment, three DeFi swap platforms are testing the token. SundaeSwap, Minswap, and WingRiders all have the testnet version of Djed in their pools.
It is recommended that individuals who want to test the stablecoin use the Nami wallet. The testing can be conducted on the Cardano test faucet by minting and burning Djed. Detected flaws can also be reported to the COTI foundation.
Successful completion of the test phase will lead to the launch of the mainnet in June this year.
