2023-05-14
Cardano’s (ADA) decentralized finance (DeFi) ecosystem is evolving rapidly on the back of recent developments, according to the Ethereum (ETH) rival’s developers.
In a new update, Cardano developer Input Output Global (IOG) says that the introduction of ADA-backed stablecoin Djed has helped the DeFi ecosystem expand greatly as of late.
Djed, created by payments platform COTI Network (COTI), went live at the beginning of this year.
“Working with other blockchains, writing smart contracts in Plutus, handling more tasks, and a more resilient Cardano network are all stages in developing a finance system that can be used by anyone, anywhere. Another piece of the decentralized financial (DeFi) jigsaw was added when Djed, a stablecoin on Cardano, went live at the end of January. Within a day, Djed attracted 27 million ADA in backing and was available on exchanges such as MinSwap, MuesliSwap, and Wingriders.
Six ADA back each Djed to help keep the coin’s price stable. That backing will unlock DeFi opportunities for the Cardano ecosystem, as well as Djed being used for settling payments and covering fees.”
IOG also says that Hydra, which the firm describes as a family of layer-2 protocols designed to make Cardano more scalable, has drastically improved the network.
“Another core concept where there has been recent progress is scalability. Here, Hydra technology, which sits on top of Cardano as a layer 2 protocol, is important. Hydra gives developers the potential to create their own mini-blockchains – heads – for functions that can be handled off the main blockchain. Hydra heads speed up processing time for an application and also free up the main chain from doing that work. The technology also cuts transaction costs.”