As per the latest reports, many crypto geeks believe that Cardano is gearing up for the launch of its own stablecoin. COTI officially announced that Cardano would launch their stablecoin DJED next week.
We are pleased to share another update about Djed's progress and to inform you that the launch is scheduled for next week!— COTI Foundation (@COTInetwork) January 24, 2023
Read more: https://t.co/7kPjfGMNmk$DJED $COTI @InputOutputHK @Cardano pic.twitter.com/mHA5KVblay
COTI is behind the development of the DJED stablecoin. Bitrue has announced that they will list $DJED and $SHEN on their exchange platform.
🔔$DJED $SHEN exclusive dual listing coming to #Bitrue Spot Trading!— Bitrue (@BitrueOfficial) January 24, 2023
🚀#Bitrue will be the first exchange to list $DJED and $SHEN @COTInetwork
✅Trading starts soon
✅Stay tuned for exclusive events!
👉Details: https://t.co/BvmhnVw1QA #DJED #SHEN pic.twitter.com/G1kcvYNOIJ
DJED is pegged by ADA and its reserve coin Shen. Let’s see, How the process works
To mint the DJED, a user needs to send ADA in the smart contract, then the contract will send Djed back to the user.
The price of Djed will aspire to be $1. The basecoin which is the coin that Djed is backed by is $ADA. Let’s assume $ADA is worth $2, so in order to mint 1 Djed, the user will need to send 0.5 $ADA to the contract.
If the user wants to get back the ADA then the user sends the DJED to the smart contract and the smart contract burns that DJED and will send back the ADA.
Shen Reserve Coin is an integral part of the Djed ecosystem, providing stability and liquidity to ensure price stability for its stablecoin users. It works by minting $Shen tokens in order to maintain a sufficient peg ratio. When the Reserve Ratio falls below 400%, holders of Shen will not be able to burn their coins for ADA, as this would prioritize those who hold stablecoins over those holding Shen. Conversely, when the reserve ratio reaches 800%, no new purchases of $Shen are allowed in order to avoid excessive risk or rewards from trading activity. By trading $Shen on exchanges, users can help maintain a healthy peg ratio and receive incentives from transaction fees collected by the underlying stablecoin’s smart contract pool which is shared among all participants that contribute towards maintaining price stability through their participation with Shen Reserve Coin.
DJED stablecoin is very different from any other algorithmic stablecoin in the way, it’s built. For more clarity, Check this video to know how the Djed mechanism works: Djed Stablecoin Explained
Stay tuned to CoinTopper.com for more news!