COTI says its main focus, for now, is to establish DJED’s adoption & Cardano-Based DJED Stablecoin Now Available for Lending and Borrowing now
As stated in a COTI blog post, Djed has now become the fourth largest project on the Cardano network. The Cardano Djed builder says the protocol has been stable since its successful launch on Jan. 31.
COTI says its main focus, for now, is to establish DJED’s adoption and create more utility for it, and as such, it will be discussing various use cases for both DJED and SHEN in the coming weeks.
Now that DJED has successfully launched, we can focus on establishing its adoption. In the coming weeks we will present to you various use cases for $DJED and $SHEN. This week we are happy to discuss the implementation of DJED on @AadaFinance.https://t.co/6JM2WwTZh3$COTI pic.twitter.com/kqUP6pbOMW
— COTI (@COTInetwork) March 2, 2023
On Jan. 31, Djed, an overcollateralized stablecoin developed by the COTI network in collaboration with Cardano’s Input Output Global (IOG), launched on mainnet. Since then, various platforms have announced support for Djed. In February, the NMKR platform, a Cardano NFT project, announced support for Djed stablecoin. The support would allow users to buy NFTs with Djed.
The COTI network also said it had added multi-wallet support and integrations for Djed. Along with Nami Wallet, users would be able to interact with the Djed platform using Eternl, Yoroi wallet, GeroWallet, Flint, NuFi and Typhon Wallet.
The Djed creator believes that by integrating these wallets, the stablecoin will be more accessible to users who want to mint and burn DJED and SHEN, facilitating its wide adoption.
More developments coming in 2023 The year 2023 will see COTI Network continue to expand and enhance Djed, which recently debuted in Version 1.1.1. Version 1.2 is anticipated this year and will employ Vasil features, including a reference script, to boost scalability.
Dynamic fees and rates will be included in the Djed 1.3 version, which is an extended version of Djed. Also, a more progressive delegation scheme will be encouraged, providing a sizable amount of liquidity.
Liquid, a decentralized finance (DeFi) protocol, has announced the successful launch of the DJED market, a stablecoin built upon Cardano’s blockchain. The new stablecoin uses an algorithmic design that employs smart contracts to ensure price stabilization, and it is expected to be useful for DeFi operations.
Lending and borrowing with DJEDÂ benefits the stablecoin and Cardano in several ways. First, it creates liquidity for the stablecoin, which is essential for its long-term success. With more liquidity, DJED can be easily exchanged for other cryptocurrencies or fiat currencies, and it can be used for a wide range of decentralized finance (DeFi) applications.
Lending and borrowing with DJEDÂ benefits the stablecoin and Cardano in several ways. First, it creates liquidity for the stablecoin, which is essential for its long-term success. With more liquidity, DJED can be easily exchanged for other cryptocurrencies or fiat currencies, and it can be used for a wide range of decentralized finance (DeFi) applications.
Second, lending and borrowing with DJED helps to stabilize the price of the coin. When demand for DJED increases, more stablecoins are minted and sold, which helps to keep the price stable. When demand decreases, the opposite happens, with stablecoins being burned to keep the price from falling too low.
Third, lending and borrowing with DJED can provide an additional revenue stream for Cardano users.
By lending out their DJED, users can earn interest on their holdings, while borrowers can access capital without having to sell their assets.
This creates a win-win situation for both parties and helps to further promote the adoption of DJED and Cardano.
The main difference between DJED and other stablecoins lies in its algorithmic design and its intended use within the Cardano network. Unlike other stablecoins that rely on centralized entities to maintain price stability, DJED uses smart contracts to automatically adjust its supply and demand to keep its value pegged to the U.S. dollar. This makes it more decentralized and less vulnerable to manipulation by centralized parties.
Cardano’s [ADA] stablecoin Djed which launched on 31 January As we know, has surpassed many projects in the ecosystem to become the fourth largest.
Created by the blockchain’s development group Input Output in collaboration with the COTI network, Djed serves as the algorithmic stablecoin for Decentralized Applications (dApps) in the Cardano ecosystem.
In February, Djed boasted of a 600% reserves ratio with 27 million ADA backing the stablecoin. With the over-collateralization mechanism, Djed would be able to remain stable irrespective of the market condition.Â
However, the stablecoin’s journey to the top would have been impossible if not for its input into the Cardano Total Value Locked (TVL). The TVL tells the number of unique deposits by protocols into an ecosystem.
Source: DeFi Llama
As of this writing, DeFiLlam showed that Djed’s addition to the TVL was around $10.49 million despite its decline in the last 30 days. Adverse, the Cardano and Ergo ecosystems tracker confirmed that the rise helped Djed gain 9% of the total Cardano TVL.
Lending season, bubbling activities on the chain
Further details from the COTI release disclosed that the firm was preparing a Djed integration on Aada Finance.
Aada Finance is a lending protocol under the Cardano. The full implementation would also allow DJED and SHEN to become borrowable assets on Aada, as confirmed on 16 February.
Djed became Cardano’s fourth-biggest project. The development team was working towards an increase in adoption with the option to borrow and use the stablecoin as collateral.
Cardano’s [ADA] stablecoin Djed which launched on 31 January, has surpassed many projects in the ecosystem to become the fourth largest.
Created by the blockchain’s development group Input Output in collaboration with the COTI network, Djed serves as the algorithmic stablecoin for Decentralized Applications (dApps) in the Cardano ecosystem.
Djed operates by maintaining a reserve of base coins, while minting and burning various other stable assets and reserve coins.
Djed: The young kid on the block
COTI, the blockchain enterprise provider revealed details of the development via a 2 March Medium post. It is significant to acknowledge that the Layer one (L1)- focused firm accrues fees into its treasury through the usage of the stablecoin.
“Now, our main focus is to establish DJED’s adoption and create more utility for it. In the coming weeks, we will present to you various use cases for DJED and SHEN”
Djed: A Formally Verified Crypto-Backed Pegged Algorithmic StablecoinÂ
Though the ADA value slid just like other cryptocurrencies, there were major improvements per on-chain activity. According to Santiment, daily active addresses hit the highest on 3 March since the 135,000 year-to-date record on 10 February.
The metric describes the number of distinct wallets that participated in ADA transfers on a daily basis. Therefore, the hike supported an increase in transactions.
Also performing at an excellent level was the development activity contributor count which peaked at 44.
Source: Santiment
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Disclaimer – The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.
