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HomeCrypto NewsCardanoSpeculations to Integrate Cardano Stable Coin Djed On Cardano DEX

Speculations to Integrate Cardano Stable Coin Djed On Cardano DEX

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WingRiders is already working with COTI to integrate Djed at launch. Djed, the Cardano stable coin, may soon be available on the famous Cardano DEX.

WingRiders, a popular Cardano decentralized exchange, teased an announcement with COTI, the issuers of Djed, Cardano’s stablecoin, in a tweet yesterday, generating suspicion of a significant Djed development.

It is important to note that COTI declared a collaboration with WingRiders in August of last year to incorporate the stablecoin into the DEX at launch.

Significantly, the most recent teaser was released just after WingRiders debuted its “StableSwap” function. 

The new feature will enable stablecoin swaps within a stable swap pool with a lower risk of impermanent loss than is typically confirmed with the constant product function. 

This occurs when an imbalanced supply causes the price of one asset to rise or fall relative to the other assets in the pool.

WingRiders describes the new feature as a compromise between the constant product and price functions.

Developers Are on Track to Launch the Cardano Stablecoin

According to a recent update, COTI has verified that the stablecoin’s developers are scheduled to release it in January, as announced in November. 

As a further incentive for owners of SHEN, the Djed reserve currency, the Cardano stablecoin issuer revealed that developers aim to enable Djed staking at launch.

To guarantee that Djed complies with regulations, the team is also improving internal monitoring tools and incorporating Elliptic services. 

The company acknowledged that it ran into a chain index bug that delayed order processing, but it insisted that it was a minor problem that only took a few days to fix.

To put things in perspective, Djed is an over-collateralized algorithmic stablecoin akin to DAI that keeps its peg to the dollar by minting and burning surplus reserves. 

Developers of Djed claim that the stablecoin would continue to retain a 400% to 800% SHEN collateral ratio, as was previously published in November.

COTI disclosed in November that the stablecoin would debut this month following a thorough audit.

Thanks to alliances created by COTI, the Cardano network will start taking payments in Djed after it launches, and users will be able to use it to pay for items like NFTs.

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