What Is Djed?
Djed is a decentralized algorithmic stablecoin that is created on top of the Cardano blockchain technology. Using a mix of collateral and a reserve token, an algorithmic stablecoin can maintain its stability over time.
Innovated by IOG and driven by COTI, a crypto-backed algorithmic stablecoin that functions as an autonomous bank is being created. Smart contracts are used by Djed to guarantee that the price of the currency remains stable and that the coin will be used for DeFi activities. It functions by maintaining a reserve of base coins, as well as minting and burning stablecoins and reserve coins, among other things.
This particular Shen serves as Djed’s reserve currency and is responsible for maintaining price stability, especially by guaranteeing the collateralization rate and the stablecoin’s exchange rate peg.
How does Djed’s advanced algorithm work?
The Djed ecosystem has been evolving since the announcement by Charles Hoskinson and Shahaf Bar-Geffen last year.
The team has focused their efforts on several areas, including user interface integration (UI), final design (final design), configuration management (configuration management), and integration of the Nami-wallet.
They are releasing Djed in a Testnet environment so that they may test the major capabilities of the protocol in an entirely artificial and safe setting while utilizing trial money.
This will also provide everyone with a chance to get an understanding of the protocol’s dynamics without having to take any risks.
SundaeSwap, Minswap, and WingRiders are all putting Djed through its paces by creating test pools on their own platforms.
How to test the Djed ecosystem
- Visit the Cardano test faucet and get the following ADA: https://testnets.cardano.org/en/testnets/cardano/tools/faucet/
- Go to djed.xyz for more information.
- Establish a connection with your Nami wallet.
- Change the network to “Testnet” and restart the computer.
- Check the “custom node” box and paste the following URL into the text field: https://cardano-submit-api-testnet.djed.xyz/api/submit/tx
- Begin minting and burning Djed on the Testnet version of the network today.
We would like to remind you that the goal of the Public Testnet is to thoroughly test all parts of the release, and we anticipate that some technical difficulties may surface.
All of these issues will be addressed and remedied in preparation for the Public Mainnet, which is scheduled to launch in June of this year.
- Carrying out an on-chain code Level 2 audit certification in order to confirm that the mitigations put in place are adequate to address all possible security problems (e.g. double-satisfaction problem, absence of improperly locked funding, resilience against sandwich attacks, absence of rounding issues, etc). This exercise will also ensure that the test objectives are sufficiently broad in order to capture any possible nonconformity scenarios that may arise.
- It was decided to introduce the configuration management contract in order to make it easier to update Djed contracts without having to change the Djed minting policy. This functionality is required in order to guarantee that stablecoin and reserve coin tokens already in circulation may still be redeemed once any updates are implemented.
- Comprehensive property-based testing is being carried out to ensure that Djed’s stability features are preserved and that no security vulnerabilities have been identified.
- Restricting the invocation of the PAB endpoints responsible for deploying, updating, and terminating a Djed instance to just those public key hashes that have been previously identified (or wallet ID).
The Coti Team looks forward to the ongoing collaboration with the Cardano team as they head towards the finish line: Djed’s Mainnet release.
Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf