Cardano (ADA) has partnered with blockchain payment ecosystem COTI to launch a new algorithmic stablecoin. This is the first algorithmic stablecoin on the Cardano chain. After intensive collaboration, the public testnet version of Djed has now been released. Djed is an algorithmic decentralized stablecoin that maintains stability through a mix of collateral and a reserve token and is built on Cardano.

Charles Hoskinson had announced the algorithmic stablecoin back in July 2021. Before that, however, the Input Output Hong Kong team wanted to take care of the development of more important projects. In particular, the Alonzo update in September 2021 was especially important to finally support smart contracts on the blockchain.