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The Cardano ecosystem is getting a Stablecoin

By ZeroRequiem | Zero Ex | 26 Jan 2023

Hey Peeps!



Image from Unofficial Djed Twitter:


On January 24th, COTI announced, via blog post, that their stablecoin, DJED, will be launched next week. 

COTI describes itself as a "“DAG (directed acyclic graph) protocol optimized for creating decentralized payment networks and stable coins.”


Technically, two different Cryptocurrencies are being launched on Cardano (ADA) next week; the stablecoin DJED and it's resever coin SHEN. 

COTI states that DJED is an "overcollateralized stablecoin that uses exogenous collateral ($ADA) to ensure stability". 

DJED is then guaranteed by its reserve coin, SHEN, and backed at a collateral ratio between 400% and 800%.

COTI says that based on the overcollateralization of DJED, there is no need for a governance token or a central authority.


"$DJED is a decentralized stablecoin that is trustless and can be verified on-chain, while fiat-backed stablecoins are centralized and require trust in a central authority. $DJED is community-driven, allowing the community to mint the reserve token, $SHEN, and enjoy most of the rewards from $DJED's success. Fiat-backed stablecoins do not offer any rewards to their community."

- Djed FAQ


The reserve coin SHEN’s minimal price is 1 ADA, and it will debut at the initial price of 1 ADA as well.

The official Djed website lists some of the advantages for holding the SHEN reserve coin, which include:

  • Receiving all DJED and SHEN mint/burn fees
  • Delegation Rewards
  • Farm rewards and tokens for providing liquidity to DEXs


Here is the Whitepaper for Djed, titled "A Formally Verified Crypto-Backed Pegged Algorithmic Stablecoin":


Below is an image from the FAQ section of the Djed website that explains the difference between the Overcollateralized stablecoin, like Djed, and other Algorithmic and Fiat-backed stablecoins


Image from the FAQ section of


The crypto exchange, Bitrue, announced on Twitter that they will be the first exchange to list the DJED and SHEN cryptocurrencies.


It appears there is a bit of buzz surrounding the launch of this stablecoin, as crypto users look to grow Cardano's DeFi ecosystem. 

I am looking forward to see if anything interesting comes out of the Cardano space after the launch of the DJED stablecoin. 


What are your thoughts on this news?

Will this stablecoin have the desired effect of boosting DeFi?

Or will it be another stablecoin that depegs and then causes a bunch of trouble for it's network?


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ZeroRequiem Verified Member

lets agree to disagree

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