Djed stablecoin has launched on the Cardano blockchain after more than a year of development. The for arming so it takes place after the testnet became available to everyone at the beginning of May last year.
The Djed stablecoin is designed so that its value is always close to the US dollar, backed by the surplus of Cardano’s native cryptocurrency, the ADA token.
So now Djed, the decentralized stablecoin tied to the US dollar, has launched on the Cardano blockchain after more than a year of development. The Djed stablecoin was developed by blockchain company Coti in collaboration with Cardano’s lead developer, Input Output.
Djed aims to offer a stable alternative to volatile cryptocurrencies when using DeFi protocols in the Cardano ecosystem.
Each stablecoin is overinsured by 400-800% by Cardano’s native ADA token, while the SHEN token is used as a backup coin. This overinsurance makes it very similar to dai stablecoin in the Ethereum ecosystem. However, Djed, like other algorithmic stablecoins, also has a minting and burning mechanism.
The development team also mentioned that they plan to add other tokens such as Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH) to our reserves alongside ADA.
According to the official website, Djed is priced at 2.67 ADA and Shen is priced at 1.08 ADA. It currently has a coverage ratio of 783%, backed by around 20 million ADA tokens.
Djed is expected to be integrated into 40 applications within the Cardano ecosystem. It has already received support from decentralized exchanges MinSwap, Wingriders and MuesliSwap. Earlier, Coti’s development team also said that they are planning to launch DjedPay as well. It will be a service that allows merchants and other crypto actors to accept payments in stablecoin.