article

Is COTI a stable coin?

Nahid
Published: May 28, 2025
(Updated: May 31, 2025)
2 min read
Is COTI a stable coin?

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COTI is not a stablecoin, it’s a utility token that fuels the operations and infrastructure of the COTI network. Its value fluctuates based on market conditions, similar to most other crypto assets. COTI plays a central role in staking, governance, treasury participation, and powering confidential computation through the upcoming COTI V2 Layer 2 on Ethereum. It is not pegged to any fiat currency or backed by reserves meant to maintain a fixed value.

However, the confusion often arises because COTI is the issuer of Djed, which is a stablecoin. Djed is the official algorithmic, overcollateralized stablecoin of the Cardano blockchain. It is pegged to the U.S. dollar and backed by ADA. COTI manages the smart contracts and issuance of Djed, making it a critical player in Cardano’s DeFi strategy but COTI itself remains a utility token with variable price.

The distinction is important:

  • COTI = Utility Token , Used for paying transaction fees, staking in the Treasury, running computations in COTI V2, and participating in governance.

  • Djed = Stablecoin , Pegged to $1 USD, backed by ADA and SHEN reserves, and designed to provide price stability in Cardano-based DeFi protocols.

In many ways, COTI plays the “infrastructure layer” role for Djed, enabling it to exist without actually being a stable asset itself. This dual identity - as both a utility token and stablecoin issuer gives COTI a unique position in the Web3 financial stack.

As COTI V2 evolves, the distinction will become even more pronounced. COTI’s value will reflect the demand for private computation, while Djed remains a stable tool for Cardano-native DeFi.

EXPLORE MORE : 
1. What is the use case of Coti coin?
2.What does Layer-2 mean in crypto?
3. ⁠Does Coti have a future? 
4. What are the expectations for the COTI coin?

5. ⁠COTI FAQ 

 

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About the Author

Nahid

Nahid

Based in Bangladesh but far from boxed in, Nahid has been deep in the crypto trenches for over four years. While most around him were still figuring out Web2, he was already writing about Web3, decentralized protocols, and Layer 2s. At CotiNews, Nahid translates bleeding-edge blockchain innovation into stories anyone can understand — proving every day that geography doesn’t define genius.

Disclaimer

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official stance of CotiNews or the COTI ecosystem. All content published on CotiNews is for informational and educational purposes only and should not be construed as financial, investment, legal, or technological advice. CotiNews is an independent publication and is not affiliated with coti.io, coti.foundation or its team. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented. Readers are strongly encouraged to do their own research (DYOR) before making any decisions based on the content provided. For corrections, feedback, or content takedown requests, please reach out to us at

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