Cardano’s Djed stablecoin locks US$10 mln in reserves on its first day

Djed, a Cardano-based algorithmic stablecoin, has collected over US$10 million in its reserves in the first 24 hours since it was launched on Tuesday.

Fast facts

Djed is an overcollateralized stablecoin that is pegged to the U.S. dollar. It is backed by ADA, the native cryptocurrency of the Cardano blockchain.
Djed had a circulating supply of over than 1.736 million tokens backed by more than 27 million ADA (about US$10 million) in its reserves, giving it a 591% reserve ratio at 9 p.m. in Hong Kong, according to the stablecoin’s website.
SHEN token, the stablecoin’s reserve currency that shares Djed’s collateral pool, is also minted by locking up ADA. The shared pool allows the stablecoin to maintain a collateralization rate between 400% and 800% despite price fluctuations in ADA.
When Djed’s collateral drops below 400%, the smart contract blocks users from burning SHEN. When the ratio goes above 800% the network will prevent new minting of SHEN.
SHEN holders are incentivized to stake their tokens by receiving mint and burn fees, delegation rewards and farming rewards.
Djed was launched by blockchain payment firm Coti and developed by Input Output Global (IOG), after passing a security audit, according to Coti.

See related article: Stablecoin project Ardana on Cardano halts operation

Author profile

Zoltan Vardai

Zoltan is a writer at Forkast with a deep passion for storytelling and blockchain. Prior to joining the team, he worked as a marketing and content writer, focused on software and technology. Zoltan holds a master’s degree from the Ludwig Maximilian University of Munich and is interested in the future of global financial decentralization.

@ZVardai

Delivered weekly on Thursdays

An unmissable weekly round up of the biggest stories in emerging tech from an Asian perspective, featuring commentary from Forkast Editor-in-Chief Angie Lau. Check out recent editions.