$ADA: Cardano-Powered Algorithmic Stablecoin $DJED to Launch Early Next Year
It is crypto-backed in the sense that the bank keeps a volatile cryptocurrency in its reserve. The reserve is used to buy stablecoins from users that want to sell them. And revenue from sales of stablecoins to users are stored in the reserve. Besides stablecoins, the bank also trades reservecoins in order to capitalize itself and maintain a reserve ratio significantly greater than one.
Paper: Djed: A Formally Verified Crypto-Backed Pegged Algorithmic Stablecoin
Good to see some slightly different algorithms. I haven't read it fully yet (I know, it's a year old) but it is at heart another collateral-backed coin, so not sure why they claim it to be algorithmic - at best, it is a hybrid.
The djed was allegedly supposed to represent the spine of Osiris - hence stability.
It still looks like a capacitor. lol. possibly our own anachronistic overlay.