A new decentralized stablecoin based on the Cardano (ADA) smart contract platform is rapidly accumulating millions of ADA in its reserves.
According to data from Djed (DJED), the new stablecoin has seen a parabolic rise in its reserve assets, leaving it overcollateralized as intended.
Data shows that DJED has a reserve rate of 591% with just over 27 million ADA tokens backing it as of this writing. The Djed website also provides information on the stablecoin mechanism and how it intends to remain stable due to overcollateralization.
“DJED is an over-collateralized stablecoin that uses exogenous collateral to ensure stability. The protocol is backed by 400-800% overcollateralization and is collateralized by its reserve currency, SHEN.
DJED’s stability is based on overcollateralization, which eliminates the need to rely on a governance protocol as seen in algorithmic stablecoins.”
DJED, created by the COTI Network (COTI) payments platform and backed by Cardano’s native asset, officially launched earlier this week on the Cardano blockchain.
Prior to its launch, COTI said it had made significant changes to the stablecoin, such as transitioning to a multi-chain network that supports private payment networks and lowering its deposit fees by 50%.
According to COTI, these changes will help with the widespread adoption of digital assets as a means of payment for goods and services.
“This launch means a big step for the crypto industry, as well as for COTI, since [upgrade] it will increase the growth of mainstream crypto payment adoption for businesses that have not yet adopted crypto payment solutions.”
ADA is trading at $0.374 at time of writing, down 3.36% on the day.
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