Cardano-Based Stablecoin DJED Attracts Nearly 28 Million ADA In Reserves

Key Points:

• Cardano-Based Stablecoin DJED has a 636% reserve ratio with nearly 28 million ADA tokens backing.
• The protocol is guaranteed by its reserve coin, SHEN, and is backed by 400%-800% over-collateralization.
• ADA now is reaching at $0.4091 since November 2022.

A new decentralized stablecoin based on the smart contract platform Cardano (ADA) is rapidly amassing reserves in the millions of ADA, according to djed.xyz report.

According to Djed data, the new stablecoin’s reserve assets have increased at a parabolic rate, leaving it overcollateralized as anticipated.

The data indicated that DJED has a 636% reserve ratio with nearly 28 million ADA tokens backing it at the time of writing. Djed’s website also provides information on the stablecoin’s process and how it intends to stay stable owing to over-collateralization.

DJED is a stablecoin that is overcollateralized and leverages exogenous collateral to assure stability. The protocol is guaranteed by its reserve coin, SHEN, and is backed by 400%-800% over-collateralization.

DJED’s stability is built on over-collateralization, avoiding the need for faith in a governance system, which is common in algorithmic stablecoins.

Backed up by Cardano’s native asset and established by payments platform COTI Network (COTI), DJED formally launched earlier this week on the Cardano blockchain.

At the time of writing, ADA is trading at $0.4091 since November 2022, a 3.36% Increase on the day.

COTI stated prior to its introduction that it had made substantial adjustments to the stablecoin, such as moving it to a multi-chain network that facilitates private payment networks and reducing deposit costs by 50%.

These modifications, according to COTI, will aid in the mainstream adoption of digital assets as a way of payment for products and services.

This introduction is a significant milestone for the crypto sector as well as COTI, as the upgrade will accelerate the general acceptance of crypto payments for organizations that have yet to implement crypto payment systems.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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