Blockchain Protocol Coti, the protocol behind Cardano’s new stablecoin, has announced that it has successfully upgraded its network, MultiDAG 2.0.
The upgrade aims to transition its ecosystem from a single-currency infrastructure to a multi-token network.
Coti’s MultiDAG 2.0 Mainnet Goes Live
The DeFi protocol behind Cardano’s new Djed stablecoin has announced the successful hard fork MultiDAG 2.0, aiming to transition the ecosystem from a single-currency infrastructure to a multi-token network. Coti revealed the launch of the mainnet on the 29th of December, during which Explorer 2.0 and the Bridge 2.0 app were also deployed. The team behind a protocol released a statement stating,
“This launch signifies a massive step for the crypto industry, as well as COTI, as the MultiDAG 2.0 will increase the growth of the widespread adoption of crypto payments for enterprises that are yet to adopt crypto payment solutions. The transition from a single currency infrastructure to a multi-token network is an exciting step for us, and we’re glad to have your support on this important path.”
MultiDAG 2.0 leverages the COTI MultiDAG (CMD) standard, which facilitates the issuance of tokens on the COTI Trustchain. This is similar to the concept of ERC-20 tokens on the Ethereum blockchain. However, in the case of the COTI Trustchain, the issuance takes place on a single DAG. The MultiDAG 2.0 release will help enhance Coti’s position in helping enterprises launch their own Private Payment Network (PPN), which would also include the issuance of CMD-branded payment tokens, CMD-branded loyalty tokens, and more.
“The launch of the MultiDAG 2.0 protocol heralds the full transition of COTI from a single currency infrastructure to a multi-token network. We believe COTI is uniquely positioned to serve enterprises, enabling them to launch their own Private Payment Network (PPN), which includes the issuance of CMD [COTI MultiDAG] branded payment tokens, issuance of CMD branded loyalty tokens, and more.”
Coti added that the new tokens would retain the same capabilities of the Trustchain in terms of security, scalability, and throughput, helping manage any requirement of enterprises. Additionally, the Bridge 2.0 app released along with the protocol also comes with a refund feature, allowing users to apply for a refund in case a swap fails due to technical difficulties.
Change In Fee Model
COTI also announced a change in its fee model. The firm revealed that deposit fees would see a decrease of 50%. Meanwhile, withdrawal fees will see a switch from a set price to a dynamic one. However, the early withdrawal fee will remain intact. Other changes in the fee include a fixed multiplier charge which is applicable to multiplied deposits, and a liquidation fee between 1% to 5%, which will also be applicable to multiplied deposits. According to the team, the new fee model will go into effect on the 15th of January, 2023.
Coti’s Association With Djed Stablecoin
The Coti ecosystem is also heavily involved with Djed, the Cardano ecosystem’s new stablecoin. The protocol is the official issuer of the over-collateralized algorithmic stablecoin, which is expected to launch on the mainnet in January 2023. The co-founder of Coti, Shahaf Bar-Geffen, is quite optimistic about the upcoming launch of Djed, despite the catastrophic failures of previous algorithmic stablecoins such as TerraUSD (UST). He shared his views on Djed when speaking at the Cardano summit, stating that he expected the stablecoin to act as a “safe haven” in the Cardano network.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.