COTI and Occam.fi will explore ways to implement the Djed stablecoin — the first stablecoin on Cardano — with the OccamX decentralized exchange (DEX). As recipients of IOHK’s cFund, both Occam.fi and COTI will work together to ensure Cardano-based projects have access to adequate liquidity upon launch through Djed trading pairs on OccamX.
Djed is an algorithmic stablecoin design that uses smart contracts to ensure price stability. Smart contracts are also used to ensure that Djed will play a pivotal role in decentralized finance (DeFi) transactions on Cardano — of particular interest to OccamX.
Djed maintains a reserve of ‘base coins’, balancing its value by continuously minting and burning stable assets and reserve coins as required. Ultimately, Djed is designed to be a more user-friendly and predictable method of paying transaction fees on the Cardano network.
It is believed that it could play a similar role in the OccamX DEX environment, as well as providing one-half of liquidity pairs for Cardano-based assets listing on the OccamX DEX.
Shahaf Bar-Geffen, CEO of COTI, said:
As Djed’s official issuer, COTI assumes the responsibility of smart contracts publication and is on the front-end engaging with funds, enterprises, developers and others wishing to mint both the stablecoin and the reserve coin used as part of the pegging algorithm. As COTI and Occam.fi’s decentralized launchpad OccamRazor have been collaborating on exploring opportunities and solutions for payment methods, the most natural next step is that Djed will be integrated into OccamX”.
Djed is designed as a fiat-pegged currency, initially pegged to USD, providing a stable means of exchange for users. However, Djed can also be pegged to other currencies, which will increase as more decentralized oracles are able to supply price-feed data to Cardano.
Elliot Hill, head of communications at Occam.fi, said:
“As joint recipients of IOHK’s cFund, COTI and Occam.fi have many avenues to work together to grow the DeFi landscape on Cardano. The OccamX DEX will be one of the most significant secondary market trading venues for the Cardano ecosystem, the UniSwap of Cardano, and to achieve that we require a reliable and dynamic stablecoin asset like Djed. We look forward to revealing more information on our integration soon.”
OccamX recently released a DEX demo showing its solution for the Cardano concurrency problem, which can be viewed here.
The Occam.fi ecosystem is managed and maintained by the Occam Association, a Switzerland-based entity operating from the crypto-friendly Canton of Zug. When the Occam.fi ecosystem grows sufficiently, Occam.fi will be governed and steered by a carefully designed decentralized autonomous organization. Occam.fi is the first decentralized launchpad designed for the Cardano ecosystem, built with expertise and care from a veteran team of blockchain entrepreneurs and professionals. Learn more at Occam.fi’s website.
For all of our updates and to join the conversation, be sure to check out our channels:
Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf