- Coti, the issuer of Djed stablecoin on Cardano, has undergone a significant protocol upgrade, with Djed 1.2 now live.
- Djed 1.2 is ushering in new improvements, including increased accessibility, which will solidify Djed’s position within the Cardano DeFi ecosystem.
Cardano-backed Stablecoin Djed has undergone a significant upgrade. COTI has announced the successful launch of the long-awaited version 1.2, which was confirmed via a post on X (formerly Twitter) by the stablecoin issuer COTI. According to the team, this significant improvement ushers enhanced functionality and accessibility.
Launched one year ago in January, the stablecoin has operated seamlessly amidst huge regulatory and technical concerns around stablecoins. Notably, the stablecoin has not lost its peg for the one year of operation. The release of version 1.2 is a continuation of the improvement roadmap, the most recent being in September last year.
Big news for Cardano DeFi! The most significant upgrade to Djed since launch is now live 💫
These updates take Cardano's overcollateralized stablecoin to new heights in stability, accessibility, and efficiency
Let's explore the key improvements 🧵@InputOutputHK
1/7 pic.twitter.com/nhPsdhcENE
— COTI Foundation (@COTInetwork) August 8, 2024
Also, Djed 1.2 introduces several improvements, some of which are scheduled for version 1.3.
Djed 1.2 New Features
- Dynamic Fees: This feature was originally scheduled for version 1.3, but the team implemented it earlier than expected. According to the team, the dynamic fee system replaces the current fee structure. In essence, the protocol dynamically adjusts base fees between 0% and 5% according to the reserve ratio. It is worth noting that these fee ranges change according to the ratio.
- Lower Minimums for Minting and Burning: Djed 1.2 has significantly reduced the minimum ADA required for minting and burning DJED and SHEN from 200 ADA to just 50 ADA. Reducing this fee bolsters small investor engagement, fostering greater participation within the Djed ecosystem.
- Increased SHEN Stability with Additional Reserves: The upgrade allocates more ADA reserves within the smart contract, further strengthening SHEN’s backing. This reinforces stability while encouraging active participation in the protocol.
- Percentage-Based Operator Fees: Djed 1.2 has an adaptable fee structure. This means that version 1.2 is replacing fixed fees with a percentage-based system. “Users will benefit from this more adaptive fee structure, making transactions more cost-effective across different order sizes and reducing the likelihood of completely failed transactions.”
Additionally, Djed 1.2 also enhances the user experience by allowing partial transactions. If users don’t have enough fees to complete a full transaction, it won’t be canceled entirely.
Also, according to the official blog post, Djed 1.2 will migrate to Plutus V2 “to increase the latest advancements in Cardano‘s smart contract capabilities.” This migration will bring several advantages, including reduced transaction sizes and costs and a streamlined development process.
At the time of writing, ADA is swapping hands with $0.3396, marking a 0.89% and 9.36% decline in the last 24 hours and past week, respectively, leading to a 12.6 billion market cap.
As CNF reported, the Cardano network is edging closer to the Chang hard fork, which promises to be one of the greatest upgrades since its main net launch. This could act as a bullish catalyst to catapult ADA to higher levels.
