The reserve ratio of the recently launched Cardano-powered algorithmic stablecoin Djed ($DJED) has now surpassed 600% after investors moved over 28.3 million $ADA to its base reserves to mint over 11.4 million DJED.

According to data from the project’s website, its reserve ratio is currently sitting at 628%, while its $SHEN reserve coin’s price is at 1.106 $ADA, with a circulating supply of 21.8 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.

As CryptoGlobe reported, popular and respected Cardano influencer “ADA whale” has recently said there is “an insane amount of cool stuff” coming to Cardano and its ecosystem. Some of the projects being built on Cardano include algorithmic stablecoin $DJED, fit-backed stablecoin $USDA, and stablecoin decentralized exchange TeddySwap, among others.

Earlier this month, Cardano’s market cap surpassed that of popular meme-inspired cryptocurrency Dogecoin ($DOGE), at a time in which $ADA has been recovering from its second-largest drawdown ever.

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