The development of the Ardana protocol to release a stablecoin based on Cardano has been halted. Developers of the blockchain platform announced the release of a new algorithmic stablecoin Djed. It’ll launch in January next year.
The team of the Ardana protocol, which was planned as a platform for issuing its own stablecoin in the Cardano network, announced the project’s shutdown, citing “funding and project timeline uncertainty.”
Ardana was supposed to be a decentralized hub for stablecoins on Cardano. The project was supposed to be the basis for releasing algorithmic stablecoin dUSD and launching an automated market maker based on a DEX to stabilize its exchange rate. The community reacted to the protocol halt by accusing Ardana developers of incompetence.
However, many users weren’t surprised by this announcement because the protocol had problems before. For example, the Ardana team held an ISPO in the Cardano network back in early July, but ADA’s price collapse led to problems for issuers. So, the project’s native token DANA lost 99.85% of its value.
The news about closing the project came immediately after the Cardano team announced the imminent release of Djed, an algorithmic stablecoin. Within the project, Cardano developers collaborate with the Currency of the Internet (COTI) payment system.
Djed’s launch is scheduled for January 2023. Now the project is undergoing an audit and a series of stress tests. According to the developers, Djed will be pegged to the U.S. dollar and backed by ADA.
Cardano’s new algorithmic stablecoin will be added to some DEXs. Djed holders will be able to stake it and receive loans on its collateral, and crypto exchanges will reward users for providing liquidity with Djed.
Shahaf Bar-Geffen, CEO at COTI, citing the implications of FTX’s crash for users, said that Djed would be fully decentralized to have on-chain proof of reserves. He also stressed that Djed would be over-collateralized and become “a safe haven from volatility” in the Cardano network.
In September this year, Cardano held the Vasil hard fork, designed to improve the ecosystem’s scalability and overall transaction throughput in the network.
