Djed attracts 27 million ADA support, TVL crosses $10 million less than 1 day after launch

Djed attracts 27 million ADA support, TVL crosses $10 million less than 1 day after launch

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2023-02-02 07:33:59

Djed, the first algorithmic stablecoin of layer-1 Cardano, has officially entered the mainnet and has witnessed remarkable growth.

Djed, the new stablecoin on Cardano makes great strides

According to DeFillama data, the total value of assets locked (TVL) on the ADA-backed stablecoin Djed (Cardano) surpassed $10 million in the first 24 hours since its launch.

Data available on Djed’s website shows that the stablecoin has a circulating supply of 1.7 million, while its reserve token, SHEN’s supply, is 20.8 million. Coti CEO Shahaf Bar-Geffen said Djed’s reserve ratio peaked at 800% a few hours after launch.

Djed has over 27 million ADA to support in less than a day after launch. This stablecoin has a reserve ratio of nearly 600%, meaning that each Djed is backed up to six times its value according to ADA. At current prices, the amount of ADA locked up to issue Djed is worth more than $10 million.

When the reserve ratio drops below 400%, the user can only burn Djed and mint Shen, and vice versa when the balance reaches 800%. This mechanism is designed to prevent another fall like Terra in challenging market conditions.

Shen holders are encouraged to stake their coins to mint Djed as they can earn additional rewards.

The new stablecoin has generated considerable anticipation from the Cardano community after being in development for over a year.

Several decentralized exchanges (DEXs) on Cardano, such as Winggriders, MuesliSwap, and Minswap, were among the earliest to list stablecoins. Besides, Cardano projects like Fluid have integrated stablecoins as a liquidity option for loans. Fluid will allow users to borrow Djed using their NFT as collateral. Centralized exchange Bitrue also announced the listing of DJED and reserve asset SHEN today.

Cardano’s ADA platform token has been steadily rising and not breaking the local uptrend, which puts it on the short list of bullish assets in the market. Cardano’s resilience is followed by 10% higher price performance compared to Bitcoin’s 40%.

ADA price movement last 24 hours

Meanwhile, Cardano’s DeFi operation also benefited from Djed’s launch. The total value of assets locked in the ecosystem increased by 21.19% to $90.81 million in the last 24 hours.

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