COTI_Official

At Rare Evo, COTI proudly unveiled the next evolution of DJED, the algorithmic stablecoin built on Cardano. DJED was pioneered by COTI and IOG in 2023 and has proven itself as one of the most resilient stablecoins in the space.

Now, it’s introducing three major developments that mark DJED’s transformation into a new kind of digital asset that ushers in a new class of use cases, strengthening its long-term position as a core infrastructure for Web3.

DJED Gets Powerful Open Source Features

DJED has consistently held its peg since inception, outperforming its peers and making it the most robust stablecoin on the market. Now, COTI is open-sourcing key parts of the Djed infrastructure (order API, chain indexer, frontend) to empower developers and communities to build around it.

Developers will be able to:

Build custom frontends for DJED

Integrate DJED functionality into wallets or dApps

Run backend services to interact securely with it

IOG stated: “Open-sourcing DJED gives Cardano developers the ability to inspect, extend, and build directly on the protocol, with transparency, driving faster innovation and deeper trust. This is a complex system engineered for uniquely high assurance: it’s grounded in formal methods, backed by very thorough testing, and has been running reliably on mainnet for 2.5 years.”

Private DJED: Privacy-Preserving Stablecoin for Cardano, COTI, and Midnight

COTI will also introduce Private DJED, the first enterprise-ready, private stablecoin to launch across multiple chains.

DJED On COTI

With the open sourcing of DJED, COTI will introduce a wrapped version of DJED into its own blockchain infrastructure.

COTI is a powerful home for Private DJED and a game-changer for enterprises, institutions, and privacy-conscious users. Not only will users be able to send, receive, and interact with it confidentially, but COTI’s capabilities extend the ability of Private DJED to be used within more complex dApps and DeFi flows. Private DJED is suitable for fully private DeFi, supply chain finance, enterprise, RWA markets, and many more use-cases.

COTI’s privacy layer, powered by garbled circuits, enables fast, light, and scalable privacy that will turn DJED into a privacy-first financial primitive that can operate at speed and scale.

Private DJED on Cardano (via COTI’s privacy layer)

COTI will also launch a confidential version of DJED on Cardano that will leverage COTI’s privacy-on-demand capabilities. This gives users access to COTI’s comprehensive privacy features without leaving the native Cardano chain.

As it stands, Cardano is the home of DJED’s native stable asset infrastructure, but Private DJED will ensure that this foundation is ready for the next wave of adoption. COTI’s programmable privacy will mean users can decide when, how, and with whom sensitive transaction data is shared.

Users will be able to:

Send and receive DJED privately

Ensure transaction details such as amounts and wallet addresses are known only to selected parties

Remain compliant while preserving on-chain privacy

Private DJED Goes Multi-Chain on Midnight

In addition, COTI will also deploy a wrapped version of Private DJED on Midnight, the privacy-focused sidechain developed for Cardano. Midnight’s confidential smart contracts make it a great home for privacy-first applications. By introducing a stable, compliant, and privacy-preserving asset, COTI can help the Midnight ecosystem to serve its users secure, shielded stablecoin transfers, ideal for institutions, enterprises, and privacy-conscious users.

Midnight is also designed for interoperability. As a purpose-built sidechain within the Cardano ecosystem, it supports interaction with multiple blockchains such as Solana, XRP, and Avalanche. Through the deployment of Private DJED, COTI is transforming DJED from a single-chain stablecoin, facilitating private stablecoin flows through Midnight’s multi-chain user base, and creating a hub for cross-chain stablecoin activity.

Why It Matters

DJED will be the first stablecoin with native privacy support across multiple chains and privacy layers, whilst providing the foundation for both open and private finance. But this isn’t just about infrastructure, it’s also about ecosystem expansion. Cardano has an estimated 1 million active users and hundreds of projects building on it, and Midnight has an even bigger reach of an estimated 12–18 million users from eight different blockchains. DJED is arguably the first privacy stablecoin with serious institutional and cross-chain potential, and COTI is the privacy layer that connects them all.

The Future Is Private, Programmable, and Open.

Whether you’re a developer looking to integrate a stablecoin into your dApp or a user who values financial privacy, DJED is here for you.

The code is opening. The shield is activating.The Future has Arrived.

For COTI updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

Trading with leverage is risky. While your potential gains are amplified, so are your losses. With high leverage, the market only needs to move a small amount in the wrong direction for your collateral to be completely wiped out.

When you’re trading on a DEX, where trades are transparent and visible to everyone, it’s particularly dangerous. Well-capitalized entities can profit by pushing the market towards prices where they know large liquidations will occur, a practice known as “stop hunting”. For example, they might drive the price down to the point where a leverage long is liquidated, so that the trader’s collateral is automatically sold to cover their loss.

This magnifies the price movement, forcing the market lower still. The attacker has already taken a short position and profits from the volatility.

This behavior is believed to be widespread on DeFi platforms, though it’s hard to prove. One trader, James Wynn, has recently become famous for being liquidated for over $100 million on the Hyperliquid DEX.

Wynn placed huge 40x leveraged bets on Bitcoin, but the market moved against him. He claims the “cabal” is after him, and that they were manipulating the market to liquidate his positions.

It’s possible he was just unlucky or got carried away. It’s also possible that this was a huge airdrop or engagement farming exercise, or that he secretly had opposite positions that canceled out his losses, as some analysts have speculated.

Still, the transparent nature of the blockchain means that order books are visible to all, and well-funded attackers can exploit this by pushing the market past key liquidation prices.

It was following this incident that Binance co-founder and former chairman, CZ, remarked on the need for a dark pool perp DEX.

COTI Fixes This

COTI uses garbled circuits to prevent attackers from exploiting transactions before they are confirmed on the blockchain. Garbled circuits are a fast, lightweight solution that process transactions in encrypted form, preserving end-to-end privacy. COTI can be used to achieve a combination of speed and scalability that is unique for Decentralized Confidential Computing (DeCC).

COTI enables confidential on-chain operations, including encrypted transfers and MEV-proof DeFi transactions, secure data storage, private multi-party interactions, and verifiable computations on encrypted data, all with optional disclosure for compliance! Build with COTI for everything from private DEX trading and RWAs to AI and ML operations with encrypted data sets.

Enjoy secure trading with no front-running on COTI with PriveX, the world’s first intent-based private Perp-DEX.

For COTI updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

We’re proud to announce that CIP (Crypto Inheritance Protocol), the first privacy-preserving inheritance solution for digital assets, is now live on the COTI Mainnet.

CIP allows users to securely and privately pass down their crypto holdings to loved ones without involving third-party custodians, legal paperwork, or centralized services. It runs entirely on smart contracts, powered by privacy logic, and is now operating on the COTI network.

This launch is more than a technical milestone. It solves a long-standing issue in Web3 that has real-world relevance.

Inheritance, the Silent Problem in Web3

As digital assets become an increasingly important part of personal wealth, the question of legacy grows more urgent: What happens to crypto when the holder is no longer around?

Until now, the answers have ranged from impractical to insecure, but CIP is working hard to change this. The company provides an automated, verifiable, and private method for inheritance through smart contracts secured by COTI’s on-chain privacy layer.

Users can set conditions such as wallet inactivity or future time-based triggers. When these conditions are met, assets are automatically transferred to designated beneficiaries in a secure and confidential manner with no intermediaries and no keys lost to time!

Why COTI is the Foundation for CIP

COTI provides the ideal foundation for CIP through its unique privacy infrastructure, powered by garbled circuits. By leveraging encrypted computations, CIP users can transfer assets without exposing underlying data, making it perfectly suited for inheritance scenarios where confidentiality is non-negotiable.

“The future of digital wealth demands solutions that transcend mere transactions. Our partnership with COTI is pivotal in building CIP, a protocol that not only secures assets but profoundly ensures their legacy. We are making Web3 inheritance private, seamless, and truly in the hands of the owner. This is about providing unparalleled peace of mind for crypto holders worldwide.” — Samson Ajah, Co-founder of CIP

Features of CIP include:

No custodians, no intermediaries: Assets stay under the user’s control until the moment of transfer. No banks, no lawyers, no external access.

Inheritance via inactivity or preset date: Users can define a timeframe of wallet inactivity or a specific future date. When either condition is met, the designated beneficiary automatically receives the inheritance.

On-chain and private: Every action occurs on-chain, with all logic processed privately through COTI’s Privacy Layer.

What’s Next for CIP

The launch of CIP marks the start of a broader roadmap toward a full digital inheritance framework. The upcoming development phases include:

• Phase 2: Community testing, bug bounties, hackathons, and user-driven improvements.

• Phase 3: Expanded asset support, including multiple cryptocurrencies, stablecoins, and NFTs. Introduction of advanced logic such as multi-party inheritance, milestone-based release, and custom conditions.

Developer Momentum: CIPs Growing Builder Ecosystem

CIP’s development is bringing new builders and privacy-focused applications to the COTI platform. Most recently CIP held an in-person hackathon across Ahmadu Bello University and Federal University in Nigeria. Aimed at fostering a new talent pool for COTI, the event attracted over 100 builders, giving CIP the catalyst it needs to scale their efforts into a broader hackathon program.

What CIP Means for COTI

This launch represents a significant milestone for the COTI ecosystem and delivers a powerful use case for its Privacy 2.0 framework. CIP’s MVP is exclusively built around COTI so that every interaction with CIP, from setting inheritance conditions to executing transfers, increases on-chain volume and ecosystem engagement.

CIP is a tangible example of how COTI’s privacy infrastructure can power mission-critical, high-value applications beyond traditional DeFi.

Explore CIP Today

Visit www.ciprotocol.com to explore the platform and sign up for early access. Builders can undertake live testing of CIP on COTI Mainnet today.

You can also follow CIP on X and join the Telegram community here.

Stay COTI.

For COTI updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

COTI is one of 24 new members to join the organization that aims to drive more than $1 trillion in assets on-chain.

Today, we’re proud to announce that COTI has been selected to join the Tokenized Asset Coalition (TAC). The TAC welcomed 24 new members, including COTI, into its ranks from hundreds of applicants.

The Tokenized Asset Coalition champions the adoption of public blockchains, asset tokenization, and institutional DeFi to dramatically alter the way capital is formed, invested and managed on-chain.

By joining the Tokenized Asset Coalition, we align ourselves with a shared vision for a more open, fair, and transparent financial system and will work to proactively shape the future of on-chain finance.

How COTI Is Pioneering Privacy For RWAs

The lack of privacy is the single biggest limiting factor for tokenization, and must be solved before institutions adopt blockchain at scale.

COTI’s Privacy-on-Demand solution is ideally placed to deliver compliant confidentiality to real-world asset issuers and their customers, providing both robust privacy and the assurance that they can meet regulatory requirements when necessary. COTI’s technology, which is based on a breakthrough implementation of garbled circuits, is both lightweight and flexible — avoiding any unnecessary friction or costs for users.

Recognizing the enormous opportunity of RWAs, COTI has been forging key partnerships in the tokenized asset space over the last year, and exploring collaborative opportunities all over the world. In addition to membership of the Tokenized Asset Coalition:

COTI announced membership of the Africa Tokenization Council (ATC).

The ATC launched its movement by hosting its first roundtable at the RWA Summit in Dubai during TOKEN2049, convening leaders from government, policymaking, investment, and technology, to discuss pathways to large-scale tokenization for MENA and broader Africa regions.

COTI has worked as a “Pioneer” with the ECB to develop a proof-of-concept for a euro-wide CBDC.

COTI CEPO Joshua Maddox attended the Inaugural New York City Digital Asset Summit Roundtable.

Most recently, COTI signed a Memorandum of Understanding (MOU) with Aureus. Money, committing to integrating Privacy-on-Demand into Aureus’s Hedera-native platform and setting new standards for institutional-grade privacy in Web3.

Membership of the TAC is a golden opportunity for COTI to build on these foundations and make an outsized impact in the fast-growing RWA space. COTI brings a unique perspective to the TAC, based on our deep insight into compliant confidentiality, auditability, and ways to bridge the gap between TradFi and Web3 technologies.

Our list of initiatives and partnerships demonstrates both COTI’s expertise in the RWA field, and our growing influence at the highest levels of industry and policymaking. We are confident that these connections will prove mutually beneficial as we seek to build value within the TAC and in wider RWA circles.

Learn more about the Tokenized Asset Coalition: tokenizedassetcoalition.com

For COTI updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

Vault liquidation

DeFi lending protocols like Aave and Compound let users deposit collateral to borrow other assets. If the collateral’s value falls below a certain threshold, the position becomes undercollateralized and eligible for liquidation to avoid the protocol accruing bad debt.

Anyone can repay the debt and receive the collateral at a discount, earning a liquidation reward in the process — typically 5–10% of the collateral amount. Think regular users get a shot at picking up those lucrative rewards? Not a chance.

In the event that a user does spot a vault that’s eligible for liquidation, their transaction will almost certainly be front-run by a bot. The bot spots the user’s transaction in the mempool, copies it with their own details, and adds a high enough gas fee to ensure it will be executed ahead of the original one. Even if the bot account does not hold enough assets to repay the fee, it doesn’t matter, since they can use a flash loan to borrow the required tokens, liquidate the vault, and pay back the loan in the same block.

Meanwhile, the user’s transaction either fails or executes after the vault has already been emptied.

Vault liquidations are particularly attractive to bot runners due to their high profitability, since DeFi vaults may hold millions of dollars worth of tokens. The scale of the problem is hard to gauge, because by definition, the affected user transactions are never confirmed on the blockchain. However, the issue likely affects users to the tune of millions of dollars per year.

COTI Fixes This

COTI uses garbled circuits to prevent attackers from exploiting transactions before they are confirmed on the blockchain. Garbled circuits are a fast, lightweight solution that process transactions in encrypted form, preserving end-to-end privacy. They offer a combination of speed and scalability that is unique for decentralized confidential computing (DeCC).

Our solution enables confidential on-chain operations, including encrypted transfers and MEV-proof DeFi transactions, secure data storage, private multi-party interactions, and verifiable computations on encrypted data — all with optional disclosure for compliance! They’re ideal for everything from private DEX trading, and RWAs, to AI and ML operations with encrypted data sets.

For COTI updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

COTI Fixes This #4: Vault Liquidation Fee “Thefts” was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.