Cardano’s native ADA token continues its price rally today as work on the stablecoin’s “Alonzo update” continues and a new document describing the technical foundation of the Cardano-based stackable coin is released.
Today, Thursday (11:09 UTC), the ADA is trading at $2.12, up 5.1% in the past 24 hours. Recent activity means that the token is up 18% in the past seven days and nearly 90% in the past 30 days, according to CoinGecko.
Today’s rise follows a bull market in the ADA, largely due to the much-anticipated ‘Alonzo’ platform update, which is said to finally allow smart contracts to run on Cardano.
Commenting on the progress of the update, Cardano’s Input-Output development team announced yesterday that the GitHub shared code repository had received 3,100 new comments on the open-source project in one week, as “we are getting closer to rolling out smart contracts”. Alonzo is moving forward.
And while Alonzo moved on, Cardano fans were thrilled to see the release of a new stablecoin Djed album on 18 August.
Charles Hoskinson, a co-founder of Cardano and CEO of Input-Output, presented information about the Stablecoin, which has been under development on the Cardano blockchain for some time, last month with individual screenshots from the document. The full text of the whitepaper is now available.
However, the release of the full whitepaper reveals more details about the project, which is being billed as “the first officially validated stablecoin protocol”.
The whitepaper describes Djed as “an independent bank that buys and sells stablecoins at a fixed price […]”. and is a cryptographic, algorithmic stablecoin.
The coin is currently pegged to the US dollar, but the Input-Output document summary makes it clear that it can work with other currencies “as long as there is an oracle that adjusts the contract price accordingly”.
Stable currencies with algorithms that don’t support fiat have been a problem for the crypto industry for some time, with many projects failing over the years.
The most famous project is probably Iron Finance’s TITAN token, which was famously burned by Dallas Mavericks owner Mark Cuban.
A successful solution to this problem would be promising for Cardano’s blockchain, which is trying to compete with Ethereum (ETH) and dominate the field of decentralized finance (Defi).