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Cardano Djed Stablecoin Issuer COTI Unveils Major Update

Thu, 12/29/2022 - 16:03
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Gamza Khanzadaev
COTI reveals important update regarding its treasury and fees
Cardano Djed Stablecoin Issuer COTI Unveils Major Update
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COTI, an enterprise crypto solutions company and developer and issuer of stablecoin Djed on the Cardano network, has unveiled an important economic update to its project. The update directly affects the Treasury and also promotes a new fee model. It should come into force as early as mid-January 2023.

According to the official COTI blog on Medium, deposit fees have been halved to 0.25% in order to speed up adoption. Deposit and withdrawal fees have been changed even more globally. Following feedback from the community, COTI developers decided to make withdrawal fees dynamic, depending on the duration of the deposit. In other words, the longer a deposit is kept in the Treasury, the lower the withdrawal fee, but not lower than 0.4%.

Cardano-Based Algorithmic Stablecoin "Pretty Close," COTI Founder Says

The update also introduced fees that depend on the risk of liquidation of the COTI deposit. These are taken in those deposits where a multiplier is applied and differ between 1% and 5%, depending on the risk health factor.

Big month ahead for COTI

January promises to be a busy month for COTI when, in addition to the updates listed above, stablecoin Djed, developed jointly with Input Output Global, Cardano's founding company, is set to launch on the main network.

Cardano (ADA) to Launch Djed, Here’s What You Should Know About Algorithmic Stablecoin

As reported by U.Today, Djed is a stablecoin with overcollateral in ADA, operating on the Cardano network. In addition to the launch of a stablecoin, a service to accept payments in Djed, called DjedPay, will be released.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.