With a TVL (Total value locked) of over $10 million the new Cardano Djed stablecoin is a success to many.
The stablecoin called an “overcollateralized” stablecoin by COTI CEO Shahaf Bar-Geffen, launched on January 31.
After the long wait for its release, Cardano users welcome the new stablecoin with open arms.
Cardano stablecoin Djed launches
The highly anticipated Cardano stablecoin Djed has finally arrived. With a circulating supply of 1.7 million, the coin tallied a TVL of over $10 million hours after its release on the Cardano blockchain.
Djed is joined by its reserve coin Shen which is used to keep Djed’s USD peg. Shen coins can be staked to earn Djed and various rewards.
Introducing Shen — Djed’s Reserve Coin:
By buying and selling Shen, users are able to maintain Djed’s USD currency peg while earning a share of transaction fees in the reserve pool.
Since the Reserve Coin is a tradable asset, holders can also profit from the short-mid term price fluctuations as an added incentive.
The COTI CEO took to Twitter to announce that Shen could no longer be minted since Djed is over-collateralised by 800%.
Once the reserve ratio falls to a lower level, traders will be able to earn Shen and burn Djed. When Djed's collateralised rate is too high, Djed can be earned while Shen must be burned.
With a new stablecoin on the market, crypto traders will be keeping a careful eye on Djed's developments over the coming years Many traders hope that Djed will continue on a positive trajectory and not fall like the stablecoins that came before it.