Djed is a stablecoin based on an algorithmic design. It uses smart contracts to ensure price stabilization, and that the coin will be useful for decentralized finance (DeFi) operations.
It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins.
Djed isn’t just a stablecoin built upon Cardano’s chain, it is also designed to become the ultimate coin with which Cardano’s entire network transaction fees will be paid. It makes more sense for a chain to have predictability in how much transaction costs, rather than have volatile gas fees, and Djed will do just that.
Being the issuer of Djed, COTI assumes the responsibility of publishing the smart contracts for the stablecoin and being the front end engaging with funds, enterprises, developers and others who wish to mint both the stablecoin and the reserve coin used as part of the pegging algorithm.
COTI is the world’s first DAG protocol optimized for creating decentralized payment networks and stable coins.