Djed Stable Coin Reaches Historic High on Cardano Chain

04/18/2023 19:58 • Tech Ticker • 165 views

According to reports, the stable coin Djed on the Cardano chain has recently reached a historic high in circulation, with an official website showing a circulation of over 4.24 million coins. Djed, developed by IOG and supported by COTI, is an over collateralized stable currency supported by Cardano’s native blockchain token ADA, using SHEN as a reserve currency.

Cardano Chain Stable Coin Djed has exceeded 4.24 million units in circulation

In recent news, the Djed stable coin on the Cardano blockchain has reached a historic high in circulation, with over 4.24 million coins in circulation according to the official website. Developed by IOG and supported by COTI, Djed is an over-collateralized stable currency built on a foundation of Cardano’s native blockchain token, ADA, and using SHEN as a reserve currency. In this article, we’ll examine what Djed is, how it works, and what makes it unique.

What is Djed?

Djed is a stable coin built on the Cardano blockchain, meaning it benefits from the security and decentralization of the Cardano network. What makes it unique is that it is over-collateralized, which means that for every Djed token minted, there is a corresponding amount of reserve currency – in this case, SHEN – held in a smart contract. This ensures that the value of the Djed token remains stable, even in the face of market volatility.

How Does Djed Work?

Like many other stable coins, Djed’s value is pegged to that of a real-world asset, in this case, the US dollar. However, as mentioned, it’s over-collateralized, meaning that 150% of the value of issued Djed tokens is backed by SHEN held in a smart contract. The reason for this is to mitigate the risk of losses due to changes in market conditions; by holding more reserve currency than necessary, Djed can ensure its stability even in times of high volatility.

Benefits of Djed

One of the primary benefits of Djed is its stability. By being over-collateralized, it is more resistant to market volatility than other stable coins, which can be subject to fluctuations if their backing asset doesn’t perform as expected. Additionally, the use of the Cardano blockchain brings additional security and transparency to the Djed ecosystem.

How to Use Djed

Djed tokens can be purchased and sold like any other cryptocurrency, but they can also be used for a variety of purposes beyond mere speculation. For example, they can be used as a payment method for goods and services, or as a stable store of value for those who want to hedge against volatility in other markets.

Conclusion

Djed is a stable coin built on the Cardano blockchain, using an over-collateralized model to ensure its stability. With over 4.24 million coins in circulation and growing, it’s quickly becoming a popular choice for those looking for a stable store of value within the cryptocurrency market. By taking advantage of the security and transparency of the Cardano network, Djed offers a compelling option for those looking to diversify their digital asset holdings.

FAQs

Q1. What is over-collateralization, and why does it matter for stable coins?

Over-collateralization means backing a stable coin with more reserve currency than necessary to ensure its stability. This helps to mitigate the risk of losses due to changes in market conditions, making the coin more resistant to volatility than other stable coins.

Q2. How is Djed different from other stable coins?

Djed is unique in that it is over-collateralized, meaning that it holds more reserve currency than necessary to ensure its stability. Additionally, its use of the Cardano blockchain adds security and transparency to its ecosystem.

Q3. Can I use Djed for more than just speculation?

Yes! Djed tokens can be used for a variety of purposes, including as a payment method for goods and services or as a stable store of value.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/15805.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.