The Cardano-powered algorithmic stablecoin Djed ($DJED) has recently achieved a significant milestone after seeing its total tokens in circulation surpass the 4 million mark, with 4.2 million now in circulation. Djed is an overcollateralized stablecoin that relies on Cardano’s native blockchain token, ADA, and employs SHEN as a reserve coin.
With a reserve ratio of 380%, Djed offers an enhanced layer of security, as its current circulating supply is supported by nearly four times the amount of its outstanding coins. The circulating supply is currently backed by around 38.9 million ADA tokens.
The project’s $SHEN reserve coin is meanwhile currently priced at 1.13 $ADA and has a circulating supply of 25.7 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 earlier this year.
According to Djed’s website, $DJED is meant to be 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.”
After launch, 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.
Djed’s growth comes as the total value locked on the decentralized finance (DeFi) ecosystem of the Cardano network surges. Year-to-date, it has grown by over 250%, as CryptoGlobe recently reported.
Notably, the latest Cardano network statistics have revealed that 124 projects have been launched on Cardano, and that 8.1 million native tokens have been released as well across 71,500 token policies.
Featured Image via Unsplash