COTI to issue new stablecoin for Cardano ecosystem

During the Cardano (ADA/USD) Summit, founder Charles Hoskinson announced COTI would be the official issuer of a new stablecoin for the Cardano system, based on the Djed protocol, Invezz learned from a press release. Cardano is one of the biggest blockchain platforms in the world with the third-biggest market cap for the cryptocurrency.

COTI is designed to meet DeFi and CeFi challenges

COTI is a full-scale “finance on the blockchain” ecosystem, aimed at solving issues typical of centralized finance such as latency, fees, risk and decentralized finance (complexity, clogging, fees, etc.) It does this by implementing a new type of DAG-based infrastructure and base protocol that is private, affordable, scalable, inclusive, fast, and finance-optimized.

Charles Hoskinson, CEO of IO Global said:

Djed maintains reserve of base coins while letting users mint and burn

The Djed stablecoin protocol maintains stable prices by leveraging smart contracts. Its algorithmic design includes smart contract programming to make sure the stablecoin will support DeFi transactions. Djed works by maintaining a base coin reserve while allowing users to mint and burn stablecoins as well as reservecoins. Its creators share plans to potentially implement Djed on Cardano to generate stablecoins. This approach would pay Cardano network use fees (transaction fees) through a "Babel fees" type mode.

Shahaf Bar-Geffen, CEO at COTI Group, stated: