Roughly over a week since launch, the Cardano-based over-collateralized stablecoin Djed has attracted over 30 million ADA tokens as backing.
The much-anticipated stablecoin was launched last week after months of development by Cardano code maintainer IOG and COTI, a fintech platform specialising in creating price-stable coins.
To avoid a repeat of the massive drop faced by TerraUSD and the luna token, which plunged by more than 99% in May, DJED was designed to be collateralized by multiple tokens and necessitates 400-800% of the issued value to be staked before it is distributed to users. DJED is backed by ADA and uses SHEN as a reserve coin. At the time of writing, Djed had a reserve ratio of 609%, indicating that each DJED is supported by six times its value in ADA.
As ZyCrypto reported, users can earn rewards by buying and selling Shen, which helps in maintaining Djed’s USD currency peg. This may fuel liquidity not only for Cardano’s $108 million decentralized finance (Defi) market but also for the upstart ecosystem. In the past week alone, the Total Value Locked (TVL) in Decentralized Exchanges( DEXs) for DJED and SHEN has grown by 3.4M ADA and 6.1M ADA.
On Tuesday, the COTI team announced plans to introduce multi-wallet support, allowing the Djed website to interact with several additional wallets. They also stated that they were working on “adding delegation info on the website,” which will allow users to keep track of their expected rewards in the coming days.
“We will also keep working towards securing more Djed partnerships that will facilitate its widespread adoption,” added COTI.
Last week, Shahaf Bar-Geffen, the Chief Executive Officer of COTI, shared his long time horizon for Djed, noting that they were working on version 1.2, which will mainly focus on Vasil hard fork utilization and increasing scalability. After that, they will work on Version 1.3, which will seek to extend Djed’s functionalities by introducing features such as dynamic fees and prices and enhanced delegation support.
“I think will be the top stablecoin on Cardano at that point, and it will make sense to think more about the future,” he said in an interview with Tim Harrison, VP of Community and Ecosystem at IOG.
Shahaf further hinted at plans to introduce “Djed Pay”, a payment system much like Ada Pay, but now based on a stablecoin. On top of that, he stated that apart from ADA, they were looking to add a functionality that would enable more native assets, such as wrapped Ether and wrapped BTC, to be deposited to the Djed smart contract to build collateral.