Cardano, one of the most popular proof-of-stake projects, is on the cusp of a big week.
As reported by U.Today, Cardano-based decentralized exchanges (DEX) MinSwap and MuesliSwap as well as plenty of other decentralized finance apps will add support for the much-hyped Djed stablecoin.
The overcollateralized stablecoin is the creation of lead Cardano developer Input Output and decentralized payment platform COTI.
The launch of the Djed (DJED) stablecoin is expected to be a boon for Cardano’s struggling DeFi ecosystem since it will likely bring much more liquidity.
The algorithm of the much-talked-about stablecoin is based on a collateral ratio that is in the range of 400%-800%. In layman's terms, other tokens will back the stablecoin. It will be impossible to mint new DJED tokens if the reserve ratio drops below the 400% mark.
The Djed stablecoin will be able to maintain its dollar peg with the help of a backup coin called Shen (SHEN).
On top of that, Liqwid Labs, an on-chain non-custodial interest rate protocol, is scheduled to have its mainnet launch next week. It acts as a decentralized marketplace for borrowers and lenders.
It remains to be seen whether Cardano (ADA) will react to the upcoming events. The cryptocurrency is currently trading at $0.39 on major spot exchanges, with its market cap sitting at $13.5 billion.
As reported by U.Today, Cardano founder Charles Hoskinson recently commented that tons of decentralized applications were coming online.