17 May 2023
🤯Cardano's stablecoin DJED expanding to Binance Smart Chain and Ethereum
Coti the team behind the algorithmic stablecoin DJED just launched that the token will be expanding to the Binance Smart Chain and Ethereum
TL;DR
DJED, Cardano's over-collateralized stablecoin, has shown to successfully maintain its peg amid market turbulence and is now gearing up for expansion to other blockchain networks. The stablecoin will be implemented as a wrapped token on networks such as Binance Smart Chain and Ethereum, with more to be added in the future. This move is set to contribute significantly to the growth of the decentralized finance (DeFi) ecosystem and provide better annual percentage yields (APY) for treasury participants. By leveraging its decentralization, over-collateralization, and verifiability, DJED aims to become a truly interoperable asset that plays a significant role in the global expansion of stablecoins in the DeFi space.
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DJED, the over-collateralized stablecoin launched on the Cardano network, is now set to expand to other blockchain networks. According to the developers, DJED will be implemented as a wrapped token on other blockchains while remaining unchanged. The initial integrations will likely be with Binance Smart Chain and Ethereum, with plans to add more blockchains in the future. To ensure a secure platform, DJED has partnered with Chainport for a centralized bridging solution.
Since its launch on Cardano, DJED has locked 36 million ADA tokens in its over-collateralized reserve, with a total value locked (TVL) of $15.08 million. Despite recent stablecoin de-pegging incidents, DJED maintained its peg and continued to contribute significantly to Cardano, ranking as the fourth-highest TVL contributor among all assets.
The Expansion of DJED to BSC and Ethereum
The move to expand to Ethereum, Binance Smart Chain, and other blockchains comes amid stablecoin turbulence in the market. While other stablecoins experienced de-pegging, DJED's stability was attributed to its decentralization, over-collateralization, and verifiability. The demand for DJED has increased, with record trading volume on decentralized exchanges (dexes) and requests from non-Cardano DeFi ecosystems for its availability on their platforms.
COTI CEO Shahaf Bar Geffen stated that going multichain was always part of their plans, but recent events have accelerated the expansion. By branching out to other blockchain ecosystems, DJED aims to generate more fees, increase value for holders, and provide better annual percentage yields (APY) for treasury participants.
As DJED expands to Ethereum and Binance Smart Chain, it aims to contribute to the growth of the decentralized finance (DeFi) ecosystem beyond Cardano. The stablecoin's resilience during stablecoin turbulence has showcased the strength of its design, which operates in a decentralized manner and allows users to view its collateral on-chain.
Flagship Thought
The deployment of DJED on Ethereum, Binance Smart Chain, and other blockchains will enable wider market access and promote its growth as a truly decentralized and interoperable asset. With Cardano's support and its ability to scale, DJED is well-positioned to handle increased transaction load and play a significant role in the global expansion of stablecoins in the DeFi space.
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