Cardano Stable Coin Djed 1.1.1’s testnet launch added Vasil compatibility and new user capabilities.
In a tweet sent out yesterday, Cardano’s Djed stablecoin’s issuer, COTI, revealed that it had relaunched the stablecoin on the testnet.
According to the associated Medium blog post, testnet version 1.1.1 contains additional functionality as part of its integration with the Nami wallet in addition to being Vasil compatible.
Users may now see, for instance, the names of both tokens as well as their display logos for Shen and Djed, according to COTI.
Additionally, the wallet now supports Shen and Djed divisible units. Users will also be able to view their prior transactions on the testnet.
Notably, COTI also announced that the testnet would undergo routine maintenance, with the first scheduled for tomorrow.
Djed is an over-collateralized algorithmic stablecoin that will operate on the Cardano chain and was released by COTI, a fintech payments startup.
Among other things, the Cardano network intends to set network fees in Djed.
According to recent reports, Djed would continue to retain its peg to the US dollar by keeping a reserve ratio of 400% to 800% with Shen.
However, users will need to swap ADA for the ability to mint Djed, and users burn Djed as a result by substituting ADA for it.
Cardano Community Excited About the News
Interestingly, news of the new testnet features was welcomed with excitement by Cardano fans, who were looking forward to the release of the stablecoin, which would power decentralized finance (DeFi) operations on the network. But a few people voiced doubt.
The crypto-anarchist Cryptonator 1337 advised his supporters to stay away from the stablecoin.
The Navcoin team member claimed that Djed would operate on COTI’s Trustchain, which omits the blockchain in favor of Direct Acyclic Graph technology for increased scalability to handle the need for international payments.
He also questioned the credibility of COTI’s HSBC and Goldman Sachs advisors.
It is important to note that these assertions conflict with the details provided by Cardano and COTI.
For instance, Djed will run on Cardano rather than Trustchain, according to a COTI blog post on Medium from September last year.
Additionally, COTI’s responsibility is restricted to creating the user interface, integrating users with smart contracts, and forming business alliances.
Hoskinson Thinks Algorithmic Stablecoins Have Potential
Following the TerraUSD de-pegging event, some in the cryptocurrency community have given up on algorithmic stablecoins delivering at scale, but Charles Hoskinson is still optimistic.
The founder of Cardano referred to algorithmic stablecoins as “the gold standard of the digital era” in a tweet from last Friday.
Hoskinson thinks these stablecoins can displace national currencies since deflationary digital assets back them.
It is yet to be discovered how Djed will perform. However, by conducting stress tests and making audits available, the creators hope to allay concerns about a repeat of the Terra collapse.
Djed will be made available on the Cardano mainnet in January 2023 following a thorough examination, as was previously stated.
Although it has yet to launch, COTI has partnered with several companies and decentralized exchanges to integrate the stablecoin.