Stablecoin Djed Cardano To Be Launched, Here Are Things You Should Know!

Cardano's stablecoin Djed. (Photo; Doc. CNBCTV18)

JAKARTA – After waiting for some time, Stablecoin Djed was finally launched in January after its announcement was confirmed via Twitter. This new stablecoin is aimed at providing stability and rewards for SHEN holders through an overcollateralized structure and fee allocation system.

Djed is backed by Shen Reserve Coin (SHEN), which developer Cardano Input Output Global (IOG) describes as a "unique mechanism" that will maintain a stable peg for stablecoins and provide incentives for long-term token holders. By holding SHEN, users will be able to earn a share of transaction fees on the reserve pool after collecting printing and burning fees for DJED and SHEN.

Users will be able to benefit from short to medium-term price fluctuations, as DJED's reserve ratio is designed to remain guaranteed with sufficient reserves in the contract even if ADA prices decrease. All SHEN holders will receive delegate rewards and there is no difference between those who score their SHEN on the DJED platform and those who buy it from DEX/CEX.

According to Tomer Menuchin, COTI business development manager and Defi researcher, SHEN has the incentive to overcollateralize the Cardano ecosystem by between 400 percent and 800 percent. SHEN holders provide liquidity to the reserve pool in the form of ADA by printing SHEN on the platform. Whenever a SHEN or DJED is printed or burned by a user on the platform, the associated fee is distributed to SHEN holders as a reward and is projected to also receive an ADA reward from the reserve pool.

Cardano claims its dollar-pegged Stablecoin Djed will have a variety of use cases, including alternative banking, lending, and remittances. It will be integrated across the entire Cardano ecosystem, including the DEX and NFT marketplaces. Ultimately, Djed will become the token to pay for Cardano's gas fees, providing measurable transaction fees.

Staking SHEN

Cardano, announced its plans to stake the SHEN and ADA tokens held in their reserve for minting SHEN and allocate them to a public staking pool managed by Wave Financial.

By launching Djed 1.1.1, Djed has prepared prizes for SHEN token holders. Calculation of delegate rewards will be carried out based on the snapshots taken in a certain period and will be distributed automatically to eligible SHEN holders every 20 days. They can track the status and prize amount through the djed.xyz website.

To guarantee the success of the platform, Djed revealed their focus on increasing liquidity by focusing on substantial transactions and reducing bottlenecks at launch. Therefore, the minimum transaction applied will be 5,000 DJED/5,000 SHEN for printing and 1,000 DJED/2,500 SHEN for token burning as reported by DailyCoin.