Cardano founder Charles Hoskinson highlighted the impressive performance of the network’s native stablecoin, DJED.
He noted that DJED has maintained price stability 99.9% of the time over the past two years. Hoskinson shared this information during a recent livestream while addressing the latest depeg of DJED.
DJED Recovers Dollar Peg Within 5 Hours
Notably, the DJED stablecoin was developed by the Cardano research and development arm, Input Output, in partnership with the COTI Network. Over the weekend, it experienced a sharp drop from around $0.99 to $0.55, losing its $1 peg.
The decline occurred amid a broader market sell-off on October 10, triggered by fears of a renewed trade war following U.S. President Donald Trump’s proposal to impose an additional 100% tariff on goods imported from China.
Meanwhile, after losing its dollar peg, Hoskinson noted that DJED recovered within five hours, which he considered ‘magical.’
DJED’s Design
Hoskinson noted that the development team did not design DJED to maintain minute-by-minute or second-by-second stability. Instead, the goal is to ensure that the stablecoin eventually recovers from any depeg.
As an algorithmic stablecoin, DJED maintains its peg through an over-collateralized mechanism that uses both ADA and SHEN as reserve assets. This collateral ratio ranges between 400% and 800%.
According to Hoskinson, whenever there is high volatility, the system freezes new DJED deposits to prevent further price drops. In his view, the approach is part of a learning process of a two-year experiment exploring how to build an efficient stablecoin system.
Impressive 2-Year Performance
Meanwhile, the Cardano founder cited on-chain data indicating that DJED has maintained a narrow trading range between $0.97 and $1.03 for 99.9% of the time since its launch in January 2023.
While he acknowledged a few rare deviations, most notably a brief surge to $2.46 and a recent drop to $0.55, Hoskinson emphasized that, overall, DJED has demonstrated remarkable stability within its intended dollar peg.
Notably, Hoskinson expressed pride in the stablecoin, noting that it has been a fun experiment over the past two years.
💰$Djed has kept its price stable 99.9% of the time over the past 2 years, despite market volatility. @IOHK_Charles calls it a “volatility dampener” – no absolute peg, just consistency. A step forward for decentralized stablecoins.
#Cardano #Djed #Stablecoin #DeFi pic.twitter.com/FZf8qMjFz7
— Cardano 5PC (@cardano_5pc) October 13, 2025
In the meantime, DJED is trading at $0.99, currently hovering within the range of its dollar peg. It has a market cap of $3.28 million, which is relatively smaller compared to established stablecoins like USDT and USDC.
Hoskinson Pushes to Introduce Tier-1 Stablecoin on Cardano
Meanwhile, Hoskinson has been pushing for the introduction of a tier-1 stablecoin within the Cardano ecosystem. Many believe this move could significantly strengthen the network’s DeFi landscape.
As part of this effort, Hoskinson has met with Ripple executives, including CEO Brad Garlinghouse, to discuss the possibility of bringing Ripple’s stablecoin, RLUSD, to Cardano.
While Hoskinson noted that discussions are progressing smoothly, no official launch date has been set for RLUSD’s potential debut on the Cardano blockchain.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
