Announcement of the long-awaited launch date for the stablecoin ‘Djed Cardano’ has been made. ADA prices are down today but could rebound next week.
The COTI Network announced on Jan. 25 that the Cardano stablecoin will be launched next week. Although it did not give a date, previous blog posts indicate that it would be launched before January 31st.
The only thing preventing the launch was the chain-index syncing process. The process was initiated a week ago. It is expected to take 14 days. This suggests that the launch date could be February 1.
COTI also announced the listing of DJED and SHEN, its balancer coin, on the Bitrue Exchange.
Cardano Stablecoin Incoming
COTI is a layer-1, scalable enterprise network that has been working on the Djed stablecoin.
It also explained that a user interface and a snapshot mechanism were developed to track rewards.
“In our efforts to stake the ADA that has been deposited to Djed smart contracts and to generate additional rewards for $SHEN owners, we are creating a snapshot mechanism as well as UI that will be added on to djed.xyz. $SHEN holders will then be able track these extra rewards.”
In return for DJED, ADA is sent the stablecoin smart contracts. When ADA prices fluctuate, a third token called SHEN acts as the balance. The stablecoin will therefore be over-collateralized by ADA.
Coti stated last week that Djed has been over-collateralized by 400% – 800%. It explained that Djed has between 4 and 8 times the underlying value backing it than its total amount of Djed minted.
Cardano’s top DEX Minswap also announced that there are a few pools available for the new tokens.
Cardano aficionados as well as ADA holders were eagerly awaiting the launch. However, ADA suffered a setback during the Wednesday morning Asian trading session.
ADA prices are currently experiencing a significant pullback. As it returns to support levels, the coin is currently down 6.4%.
ADA hit a record $1.384 per week on Jan. 22, but it has since fallen along with the rest. After falling significantly over the past six hour, it is now trading at $0.354.
This retreat could offer another opportunity to buy in the lead-up to Djed launch, which could push ADA prices even higher.