Repost Admin
Recently, FinTech startup COTI Group, the issuer of algorithmic stablecoin Djed (which is built on Cardano), shared with the Cardano community some important details about the current status of the project.
What Is Djed ($DJED)?
On 26 September 2021, day two of the two-day Cardano Summit 2021, IO Global (IOG), the blockchain technology firm responsible for the research and development of Cardano ($ADA), and FinTech startup COTI Group, unveiled Djed, a formally verified crypto-backed pegged algorithmic stablecoin for Cardano that was designed by the former and is issued by the latter.
Djed’s use of smart contracts ensures price stabilization. Djed can be useful in decentralized finance (DeFi). It works by “keeping a reserve of base coins, and minting and burning stablecoins and reserve coins.”
The following is the abstract from IOG’s white paper (released on 17 August 2021) for Djed:
“This paper describes Djed, an algorithmic stablecoin protocol that behaves like an autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price. It is crypto-backed in the sense that the bank keeps a volatile cryptocurrency in its reserve. The reserve is used to buy stablecoins from users that want to sell them. And revenue from sales of stablecoins to users are stored in the reserve. Besides stablecoins, the bank also trades reservecoins in order to capitalize itself and maintain a reserve ratio significantly greater than one.
“To the best of our knowledge, this is the first stablecoin protocol where stability claims are precisely and mathematically stated and proven. Furthermore, the claims and their proofs are formally verified using two different techniques: bounded model checking, to exhaustively search for co
GIPHY App Key not set. Please check settings