• Djed stablecoin is a Cardano-based overcollateralized stable asset that was launched on Wednesday and has already attracted over 27 million in ADA base reserves.
• Djed stablecoin has a total value locked of around $10.39 million and a collateral ratio in the range of 400-800 percent.
• COTI noted that SHEN tokens cannot be minted anymore and traders can only access them through DEXs.
Cardano-based Djed Stablecoin has caught the attention of the crypto market after it was officially launched on Wednesday. The stablecoin, which is powered by COTI and developed by IOG, has already attracted over 27 million in ADA base reserves and has a total value locked (TVL) of around $10.39 million.
The Djed stablecoin is an overcollateralized stable asset backed by ADA and SHEN tokens as reserve coins. As such, the Djed stablecoin cannot de-peg from the programmed price like Terra Luna UST. The stablecoin has a collateral ratio in the range of 400-800 percent, meaning that for every Djed minted, the system ensures that there is more than 4 times the value of ADA in the reserve pool.
In order to ensure trust with users, COTI has noted that SHEN tokens cannot be minted anymore and traders can only access them through DEXs. This is to ensure a healthy market. The future outlook of Djed stablecoin on the Cardano network is uncertain, however, the Cardano network has provided the crypto market with a much-needed decentralized stablecoin after the implosion of Terra Luna UST.
It is yet to be seen if the Djed stablecoin will be able to convince both regulators and traders that its infrastructure is not similar to Terra Luna and will not suffer the same fate. With its overcollateralized structure and SHEN tokens only accessible through DEXs, the Djed stablecoin may be able to provide the market with a secure and reliable stablecoin.