31 Jan 2023
Algorithmic Stablecoin Djed is Live on Cardano Mainnet
Djed, a stablecoin built with an algorithm on Cardano, has launched and, at the time of writing, has a reserve ratio of 783%.
UST's demise as the Terra ecosystem's algorithmic stablecoin fueled skepticism of all stablecoins. Due to this collapse, the crypto market entered a deeper bear market last year, and investors lost billions. For a whole year, the COTI group collaborated with Input Output Global (the developers of Cardano) to restore faith in algorithmic or decentralized stablecoins. Djed's launch, which they called the beginning of “a new era of stablecoins,” arrived at last.
Djed ecosystem members have formed more than 40 alliances to promote the widespread use of the new stablecoin. The cryptocurrency can be purchased on decentralized markets like MinSwap, Wingriders, and MuesliSwap. Djed is currently not listed on any consolidated exchanges. Bitrue declared that it would list the token before any other centralized exchange. The team has designed Djed to be overcollateralized by 400%-800% by Cardano's native coin ADA and reserve coin Shen to counteract the widespread distrust of algorithmic stablecoins.
The reserve ratio can be verified by investors using the on-chain proof of reserves. Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH) were also mentioned by the team as potential reserve assets to complement ADA. Djed costs 2.67 ADA on the official website, while Shen costs 1.08 ADA. Currently, about 20 million ADA tokens are in circulation, for a reserve ratio of 783%.
ADA was stolen from community members during the Djed launch, which encountered some difficulties. Within 15 minutes of the website's launch, scammers were able to steal over 20,400 ADA from unwitting investors because the website does not display the policy ID of Shen and Djed. The team received feedback from the Discord community for not showing the Policy ID.
The Djed website also gave some users an error message that read, “Service is currently unavailable.” However, the Discord moderator made the community aware that the team was attempting to correct the mistake. At this time, the price of ADA is not significantly affected. However, our analysis indicates that a brief correction is imminent.
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