YEREVAN (CoinChapter.com) – As Coti Network announced on Jan 31, its Djed Stablecoin went live on the Cardano Mainnet. Coti introduced the first stablecoin to the Cardano ecosystem and delivered on the promise to launch it before the end of Jan 2023.
The much anticipated public mainnet launch of Djed heralds a new era for stablecoins. Launching Djed is a significant milestone for COTI, the Cardano ecosystem. With over 40 partnerships […] DJED will unlock opportunities for the Cardano ecosystem around Defi, Payments and more.
announced the Network.
Also read: COTI loses 24% as the Network prepares for DJED stablecoin release.
Soon after the launch, however, some users faced issues, claiming that the service was “currently unavailable.” Cardano Djed stablecoin team has not yet responded to the issues as of this writing.
How is Cardano Djed stablecoin different from its peers?
As Djed Stablecoin goes live, the team noted several points setting Djed aside from other stablecoins. The team’s blog post shed more light on the Djed economics and delegation rewards. According to the post, one of the key components of Djed’s structure is its reserve ratio.
The reserve ratio determines the proportion of $ADA that is held in reserve to collateralize and maintain the stability of DJED. Following extensive research, we have reaffirmed the conclusion that the optimal range for the reserve ratio is between 400%-800%, as initially mentioned in the Djed whitepaper.
commented the team.
Also read: Bitcoin Could Easily Rally to $25K — But What Afterward?
Due to the recent price decline, this ratio was determined by the maximum monthly decrease of the ADA price at all times. The decline stood at over 66% at the time of the research. In conclusion, the Djed team determined that the over-collateralization of DJED by around 300% will help to have enough reserve in case it happens again.
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