Cardano and IOST Announce Plans to Launch Algorithmic Stablecoins

The teams behind Cardano and IOST have both revealed intentions to build their own versions of algorithmic stablecoins, indicating that the digital assets are gaining steam. Cardano’s Djed is Live on Public Testnet To begin, the COTI team has announced the introduction of the public Tesnet version of Djed — a decentralized algorithmic stablecoin based on the Cardano network – in conjunction with the Cardano team. The Testnet environment will allow the key functionality to be tested without the risk of using real money. Shen, a reserve coin specifically created to guarantee the collateralization rate and the peg of the stablecoin, will sustain Djed’s stability. Djed has been under development since September 2021, with the goal of being “the ultimate token with which Cardano’s whole network transaction costs will be paid.” IOST’s Plans for An Algorithmic Stablecoin Secondly, the team at IOST has announced plans to launch an algorithmic stablecoin that solves the following three core problems. Ensure the authenticity of oracle price feeds Manage scarcity to ensure price stability and deal with the deflationary cost To design a short-term price arbitrage model to reduce short-term price volatility The IOST team hopes to ‘exploit its robust community of hundreds of thousands of users, underpinning excellent technical support, and the increasingly mature multi-chain ecosystem, which provides a good platform for the next decentraliz...