The recently launched Cardano-powered algorithmic stablecoin Djed ($DJED) is now backed by over 31.5 million $ADA tokens, as its adoption keeps on growing and its reserve ratio remains high.

According to data from the project’s website, DJED’s reserve ratio currently stands at 488%, with 31.6 million $ADA backing a total of 2.27 million $DJED tokens in circulation.

The project’s $SHEN reserve coin is meanwhile currently priced at 1.07 $ADA and has a circulating supply of 23.69 million tokens. By buying and selling SHEN, users can contribute to the stability of the USD currency peg of Djed, and earn a share of transaction fees in the reserve pool. Holders of SHEN can also potentially profit from its short-mid term price fluctuations.

Djed itself is a formally verified algorithmic stablecoin for Cardano that is backed by cryptocurrency, IOG, the company behind the development of Cardano, designed the stablecoin, while COTI Group is responsible for issuing it. The stablecoin was announced back in September 2021, and launched last week.

According to Djed’s website, $DJED is backed by “400-800% overcollateralization and is guaranteed by its reserve coin, $SHEN.” Being overcollateralized, the website adds, means the protocol “eliminates the need for trust in a governance token as seen in algorithmic stablecoins.”

The stablecoin was quickly supported by a number of Cardano-powered decentralized exchanges (DEXes), such as MuesliSwap, Minswap, and WingRiders, as well as several major exchanges including Bitrue.

Recently, the well-regarded Cardano influencer known as “ADA whale” stated that there are numerous exciting developments in store for Cardano and its related projects. These include the fitness-backed stablecoin $USDA, and the decentralized exchange TeddySwap, which runs on a stablecoin.

Cardano’s market capitalization surpassed that of the widely known meme-based cryptocurrency Dogecoin ($DOGE) earlier this month, during a period when $ADA was rebounding from its second-largest dip in value.

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