DJED Expanding To Other Networks
Since its launch on the Cardano network in January, DJED, an $ADA-backed stablecoin, has shown significant growth, securing 36M ADA in its over-collateralized reserve within three months.
Despite financial instability in the US and European banking sectors, DJED maintained its value and even expanded, highlighting the market’s demand for a stable and reliable stablecoin.
To meet this demand, DJED is set to be integrated into other blockchains, starting with Binance Smart Chain ($BNB) and Ethereum ($ETH). 🤯
This expansion, facilitated by the cross-chain protocol ChainPort, will significantly boost DJED’s user base, resulting in increased rewards for $SHEN holders and higher operational fees for $COTI Treasury participants, ultimately enhancing DJED’s utility across the wider crypto ecosystem.
Check our Crypto 101 article on DJED here.
Enter Hydra
Hydra is a layer-2 scaling solution developed for the Cardano blockchain, designed to significantly enhance the scalability and efficiency of the network.
Layer-2 refers to a secondary protocol or framework built on top of an existing blockchain network. The main objective of Hydra is to help the Cardano network handle a much larger volume of transactions and smart contract interactions without clogging up the network or leading to high fees. 🦑
Hydra is a family of layer 2 protocols designed to improve network scalability. The Hydra Head is the first in this protocol suite.
This thread looks at how #Hydra Head works, its benefits, use cases, and current implementations.🔎
🧵 pic.twitter.com/nkvN4XmA0B— Input Output (@InputOutputHK) January 26, 2023
Hydra achieves this by enabling the creation of what’s called “Hydra heads,” which are essentially state channels or off-chain mini-blockchains. Each Hydra head can process transactions independently and concurrently, thereby dramatically increasing the total throughput of the Cardano network.
This not only accelerates processing times but also lightens the load on the main chain and cuts transaction costs. With these advancements, the Cardano DeFi scene is truly kicking into high gear.
Don’t know what Layer-2 is? Check out today’s Crypto 101 article.