04 May 2022 · 1 min read

Cardano’s Djed Stablecoin Testnet Goes Live, ADA Outperforms

Charles Hoskinson. Source: a video screenshot, Youtube/Charles Hoskinson

 

The smart contract platform Cardano (ADA) launched a testnet version of the new algorithmic and decentralized stablecoin Djed, and is requesting feedback from the public. ADA jumped on the news.

At 14:33 UTC, ADA traded at USD 0.83 and was up 5% in a day, becoming the best performer among the top 10 cryptoassets by market capitalization today. ADA erased all its weekly losses but it is still down 30% in a month and 39% in a year.

“[…] after months of intense work along with the Cardano team, the public Testnet version of Djed is now released,” they said, adding that extensive work has been put in to build the Djed ecosystem, including developing a user interface and work to integrate the Nami wallet.

Nami is a browser-based wallet extension built for the Cardano blockchain.

The update from the team also said that releasing Djed in a testnet environment allows the protocol to be tested “in a fictitious and safe space using trial funds.” This will give all users the opportunity to understand how the protocol works without taking risks with their own funds, it added.

The Djed stablecoin, which is backed by a combination of collateral and a separate reserve token known as Shen, is pegged to the US dollar. The project was first announced by Cardano founder Charles Hoskinson in July last year.

The Cardano-based decentralized exchanges (DEXes) SundaeSwap, Minswap, and WingRiders are now starting to test Djed through test pools on their token swap platforms, Wednesday’s announcement said.

Coti, the company that developed the stablecoin for Cardano, shared the following video to show how Djed works:

Following the launch of Djed on Cardano’s testnet, the next step for the team is to perform a so-called on-chain code Level 2 audit certification. Further, the team should also perform further testing of the protocol after any vulnerabilities have been fixed. 
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Learn more:
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- ADA Rallies as Coinbase Offers 3.75% APY for Staking Cardano

- Number of Devs on Solana, Polygon, Cardano & Co Growing Faster Than on Ethereum
- After Failed Prediction, Cardano’s Hoskinson Pushes for ‘Real Decentralization’