While COTI is already operating its stablecoin DJED in public testing phase with several decentralized exchanges and protocols DeFi, IOST reveals plans to launch its own in the coming months. Both projects leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. the technology of Cardano to develop these initiatives.
***
The topic of algorithmic stablecoins has become one of the focal points of interest within the space. Blockchain, currently having the teams of TRON y Earth in the spotlight. However, the ecosystem of Cardano does not seem to have intentions of staying behind, since there are a couple of projects that aim to break into this sector and take advantage of the benefits of the network a network refers to all nodes in the operation of a blockchain at any given moment in time. for these purposes.
DJED de COTI ya está en fase pública de pruebas
The first case is that of DJED, the algorithmic stablecoin developed by the team from COTI in collaboration with developers from Cardano, which currently has a public test version, in which you can test its main features without using real funds.
This was announced this week by the team of COTI through his official account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of Medium, in which they shared the news with those interested in the project and referred to DJED as follows:
“DJED is a decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. algorithmic stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. that is based on Cardano… It maintains stability through a combination of collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. and a reserve token. In this case, SHEN is the reserve currency currency is a medium of exchange that defines value. of DJED and has the function of guaranteeing price stability, specifically the guarantee rate and digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency peg.”
In addition to this, the COTI team also noted that SundaeSwap, Minswap y WingRiders are starting to test DJED on their respective platforms, for which they have enabled test groups on their platforms.
IOST also jumping on the algorithmic stablecoin bandwagon
On the other side is IOST, one of the development teams that also makes a life in the ecosystem of Cardano, which recently announced plans to launch its own algorithmic stablecoin.
With regard to the plans for IOST, the team envisions that the proposal they are working on will address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. three key problems present in the ecosystem:
- Guarantee the authenticity of the price sources reported by the oracles.
- Manage scarcity to ensure price stability and address deflationary costs.
- Design a short-term price arbitrage arbitrage is the practice of quickly buying and selling the same asset in different markets to take advantage of price differences between the markets. model to reduce price volatility.
According to a publication by the IOST through his account on Medium, the main objective is to take advantage of the community of hundreds of thousands of users that they manage, together with the benefits offered by an increasingly mature multichain ecosystem, in order to generate solid foundations for the creation of a stablecoin that operates in a decentralized way.
Let’s keep in mind that this team has experience working with stablecoins, among which stand out projects such as iUSD, XUSD, HUSD y JPYA, the latter with a value linked to the Japanese yen.
- Cardano in figures: number of transactions grew by 8% and ADA addresses by 3% in April
- Cardano increases its block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. size by 10% after last update
- WingRiders becomes the second DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. with the most daily operations on Cardano’s network.
Source:EthereumWorldNews, Medium (1) (2)
Version by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash
