Cardano has finally taken a significant step toward adoption. After so much anticipation, Djed, its stablecoin, is here. Will Djed change the future of the ADA ecosystem? Let's find out.
Djed, the highly anticipated Cardano stablecoin, finally went live. Djed is a stablecoin pegged to the USD dollar backed by Cardano native cryptocurrency, ADA. They also use SHEN as a reserve coin.
Djed is similar to DAI stablecoin. Both stablecoins are overcollateralized — people need to add more than expected to cover for volatility. Currently, Djed has a minting and burning mechanism like other algorithmic stablecoins.
However, the argument for algorithmic stablecoins will never end. Algorithmic stablecoins remind people of TerraUSD (UST), which launched the markets into the abyss.
Many people are still weary about the true worth of these stablecoins — Yet, Cardano still came through.
The blockchain company Coti together with Input Output, Cardano's lead developer, were the creators. For them, Djed represents a new medium for new payment opportunities and decentralized finance (DeFi).
According to Coti, Djed has been in preparation, development, and security audit for over a year.
Currently, the Djed ecosystem has more than 40 partnerships to achieve the adoption of the new stablecoin. You can find it on decentralized exchanges such as MinSwap, Wingriders, and MuesliSwap.
Djed's success was hasty. Djed filled its collateral vaults in a matter of days. Its vaults currently hold 29.52M ADA ($11.89M) — a reserve ratio of 640%. Each Djed is worth 2.52 ADA, which gives a small premium of less than a penny per Djed. Currently, there are a total of 1.85M Djed.
Will Djed be the one to take Cardano to the next level? We will have to wait and see. It's too early to tell, and not enough people have jumped on the bandwagon.