How Cardano’s new stablecoin Djed will reduce gas fee for crypto transactions?

Courtesy: COTICardano’s new stablecoin Djed will make it easier to run DeFi projects.After the Alonzo update empowering Cardano to support smart contracts, a new stable coin Djed (pronounced Jed with a silent D) is arriving on the Cardano blockchain. Djed will be issued by the decentralized payment platform, COTI.Investors in the market have strong expectations about the booming DeFi platforms and Djed can make it easier to run DeFi projects on the blockchain.Here’s what you need to know about the Djed coin:On its website, Djed says it is “a crypto-backed algorithmic stablecoin that acts as an autonomous bank, developed by IOG and issued by COTI.COTI is a decentralized payment platform that organizations can use to build their own digital payment solutions. COTI already acts as a payment platform for Cardano’s ADA Pay.Djed is based on an algorithmic design that uses smart contracts to ensure price stability. Smart contract programming is also used to ensure that the stablecoin will work effectively for decentralized finance (DeFi) transactions.Stablecoins are pegged to a range of assets from fiat to gold or another cryptocurrency to maintain a stable value with respect to a reference. Popular stablecoins include USDT, which is pegged to fiat currencies, PAX Gold (PAXG) and Digix Gold (DGX), pegged to gold. The function of stablecoins is to offer an easy way to trade in and out of a volatile market.Read more: Should You Invest In Stablecoins? Are They Really Stable?Djed operates by maintaining a reserve of base coins, while minting and burning various other stable assets and reserve coins. It is designed to be used for paying transaction fees on the Cardano network. One benefit of this is to make transaction costs more predictable, so avoiding volatile and exorbitant gas fees for users.The value of Djed is kept stable by an algorithmic…