Recently Cardano and COTI is being rally up drastically and now is cooling down a bit. Yep of course it is because Bitcoin crashing! ahaha

Okay let's jump into Djed!

First thing first! recently Cardano is announcing that they have teamed up with 13 major organization, and one of them is COTI. Actually i've posted it before you can go check it here

What will they do? and the answer is one of their procjet "Djed"
"an algorithmic stablecoin protocol that behaves like an autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price"

Djed: a crypto-backed algorithmic stablecoin contract. Djed acts as an autonomous bank, keeping a reserve R of BaseCoins (BCs), and minting and burning StableCoins (SCs) and ReserveCoins (RCs). It maintains the peg of the SCs to a target price by buying and selling SCs, using its reserve. While doing so, it charges fees and accumulates them in its reserve. The beneficiaries of this revenue stream are ultimately the RC holders, who contribute with additional funds to the reserve and take the risk of price fluctuation.

Here's you can read the Research Paper
down bellow is some spoiler if you understand hahaha

i will make the chart later on here CHART stay tuned!

I posted some of my fundamental knowledge here! check it out too! Recap Analysis