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Djed, Cardano Algorithmic Stablecoin Launches

The Cardano team worked for a year to re-establish trust in the stablecoins.
| Cryptopress
Last updated: February 2, 2023

By CryptoPress

The highly anticipated algorithmic stablecoin on Cardano, Djed, is now live. And scammers did not miss this opportunity.

When UST, the algorithmic stablecoin in the Terra ecosystem, went down, it made people feel bad about this type of stablecoin. This crash last year led the cryptocurrency industry into a bear market, with investors losing billions.

The COTI team, with the help of Input Output Global (the creators of Cardano), worked for a year to re-establish trust in algorithmic stablecoins. Finally, they heralded “a new era of stablecoins” with the release of Djed.

Djed Launches on the Cardano Mainnet

The Djed ecosystem has joined more than 40 associations to drive adoption of the new stablecoin. It is listed on decentralized exchanges such as MinSwap, Wingriders, and MuesliSwap.

Centralized exchanges have yet to list Djed. But Bitrue announced that it would be the first centralized exchange to list the token.

To address negative sentiment on algorithmic stablecoins, the team has built Djed to be 400-800% overcollateralized by Cardano’s native coin ADA and reserve coin Shen. Proof of on-chain reserves will be available for investors to verify the reserve ratio.

The team also mentioned the plan to add other “wrapped” assets like Wrapped Bitcoin ( WBTC ) and Wrapped Ethereum ( WETH ) as reserves along with ADA.

According to the official website, the price of Djed is 2.67 ADA, and the price of Shen is 1.08 ADA. It currently has a 783% reserve ratio backed by around 20 million ADA tokens.

Are Scammers Taking Advantage of the Launch of $DJED?

The launch of Djed suffered from some issues as community members lost ADA to scammers. As the website does not display Shen and Djed’s Policy ID, the scammers took advantage and stole over 20,400 ADA from unaware investors within 15 minutes of launch. The Discord community criticized the team for not displaying the Policy ID.

Some users also experienced an error with the Djed website, saying: “The service is not available at the moment.” However, the Discord moderator informed the community that the team was working on the bug.

Currently, there is not much impact on the price of ADA . But, our analysis suggests that a short-term correction is just around the corner.

In summary:

  • Djed, the Cardano Algorithmic Stablecoin, has finally launched.
  • It is listed on decentralized exchanges and the first centralized exchange to list it will be Bitrue.
  • It is overcollateralized between 400%-800% by Cardano’s native coin ADA and reserve coin Shen.
  • Scammers took advantage of the launch to steal 20,400 ADA from unsuspecting investors.
  • The analysis suggests that a short-term correction is ahead.

© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.


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