Djed ($DJED), the recently launched Cardano-powered algorithmic stablecoin, is now backed by over 31.5 million $ADA tokens, as its adoption continues to grow and its reserve ratio remains high.
DJED’s reserve ratio is currently 488%, according to data from the project’s website, with 31.6 million $ADA backing a total of 2.27 million $DJED tokens in circulation.
Meanwhile, the project’s $SHEN reserve coin is currently trading at 1.07 $ADA and has a circulating supply of 23.69 million tokens. Users can contribute to the stability of Djed’s USD currency peg by buying and selling SHEN, as well as earn a share of transaction fees in the reserve pool, by buying and selling SHEN. SHEN holders may also profit from short- to medium-term price fluctuations.
Djed is a formally verified algorithmic stablecoin for Cardano that is backed by cryptocurrency. The stablecoin was designed by IOG, the company behind Cardano development, and it is issued by COTI Group. The stablecoin was announced in September 2021 and officially launched last week.
$DJED is backed by “400-800% overcollateralization and is guaranteed by its reserve coin, $SHEN,” according to Djed’s website. According to the website, the protocol’s overcollateralization “eliminates the need for trust in a governance token as seen in algorithmic stablecoins.”
A number of Cardano-powered decentralized exchanges (DEXes) such as MuesliSwap, Minswap, and WingRiders, as well as several major exchanges such as Bitrue, quickly supported the stablecoin.
Recently, the well-known Cardano influencer known as “ADA whale” stated that Cardano and its related projects are in for many exciting developments. These include the fitness-backed stablecoin $USDA and the stablecoin-powered decentralized exchange TeddySwap.
Earlier this month, Cardano’s market capitalization surpassed that of the widely known meme-based cryptocurrency Dogecoin ($DOGE), at a time when $ADA was recovering from its second-largest drop in value.
