The Cardano-powered algorithmic stablecoin Djed ($DJED) recently passed the 4 million tokens in circulation threshold, with 4.2 million presently in circulation. Djed is an overcollateralized stablecoin that uses SHEN as a reserve coin and is based on Cardano’s native blockchain token, ADA.
Djed provides an added degree of security with a reserve ratio of 380%, as its current circulating supply is covered by nearly four times the quantity of outstanding coins. Approximately 38.9 million ADA tokens are now in circulation.
Meanwhile, the project’s $SHEN reserve coin is now trading at 1.13 $ADA and has a circulating quantity of 25.7 million tokens. Users can contribute to the stability of Djed’s USD currency peg by buying and selling SHEN, as well as receive a part of transaction fees in the reserve pool purchasing and selling SHEN. SHEN holders may also profit from short- to medium-term price changes.
Djed is a formally confirmed algorithmic stablecoin for Cardano that is backed by bitcoin. The stablecoin was devised by IOG, the company leading Cardano development, and COTI Group issues it. The stablecoin was announced in September 2021 and introduced this year.
Djed’s website claims that $DJED is backed by “400-800% over-collateralization and is guaranteed by its reserve coin, $SHEN.” According to the website, the protocol’s over-collateralization “eliminates the need for trust in a governance token as seen in algorithmic stablecoins.”
Following its first release, the stablecoin was rapidly supported by a variety of Cardano-powered decentralized exchanges (DEXes), including MuesliSwap, Minswap, and WingRiders, as well as several big exchanges, including Bitrue.
Djed’s expansion coincides with an increase in the total value locked on the Cardano network’s decentralized finance (DeFi) ecosystem. According to CryptoGlobe, it has increased by more than 250% year to date. Notably, according to the most recent Cardano network data, 124 projects have been started on Cardano, and 8.1 million native tokens have been deployed across 71,500 token policies.
