Reddit Posts
Now that MOONS are dead and ETH security is shitting the bed.... can we all start talking about how Cardano is running away with the show?
Cardano's DJED stablecoin faces unminting and depegging challenges amid reserve ratio decline
Cardano’s new stablecoin DJED is defying sceptics – for now
Cardano Stable Coin DJED flash-crashed to $0.13, remains de-pegged at $0.97
The stablecoin Djed has only 882 hodlers.
Cardano-Powered Algorithmic Stablecoin $DJED Now Backed by Over 31.5 Million $ADA
Cardano DJED Depegging Reignites Stablecoin Backing Debate
Mentions
Minswap does the most volume by far within Cardano, so I put ADA into liquidity pools of ADA and stablecoins (there are DJED, iUSD, and USDM as the three with the most volume/liquidity), then I stake those LP tokens in their farms to earn ADA and MIN.
>They aren't choosing other chains. They're trying USDC because they say its "stable." yes, remarkably stable. The only unstable stablecoin still in existence is DJED. >Who controls USDC? Circle. So Visa chose an Eth-20 token which can be rug pulled by devs or corrupted by a bad actor at any time. No, actually they can't. Both Circle and Tether only deploy their stables on chains that have clawback functionality, specifically to prevent this. > Smart contracts are always corruptible. ??? Smart contracts can be immutable or not, is that what you're referring to? And why would having that option be an issue? If not, what do you mean by "corruptible"? >The "market" hasn't determined shit. There is no "market" for legitimate cryptocurrencies. There's manipulated crypto, and there's the other projects who haven't been overtaken by wall street. That's it. ok cool, not sure why you're wasting your time here if you truly believe that though.
It's kind of a tautology isn't it? If ADA surpasses $1, it would be above USDC. You can even throw in there list USDT, DAI, and its very own DJED
[The 7 Best Cardano (ADA) DApps (makeuseof.com)](https://www.makeuseof.com/best-dapps-cardano-ada/#:~:text=The%207%20Best%20Cardano%20%28ADA%29%20DApps%201%201.,6.%20Djed%20%28DJED%29%20...%207%207.%20Revuto%20) **The 7 Best Cardano (ADA) DApps** * 1. MinSwap The most prominent blockchains always have a decentralized exchange (DEX). ... * 2. CNFT CNFT is the first marketplace for non-fungible tokens (NFTs) on Cardano. ... * 3. Labs by Mutants Labs by Mutants is a next-generation platform for NFT holders and creators. ... * 4. Cornucopias (COPI) The Cardano blockchain features a variety of fantastic gaming and metaverse DApps. ... * 5. Empowa (EMP) ... * 6. Djed (DJED) ... * 7. Revuto
>If we look at outputs per second, Cardano can easily send transactions to over 80 unique users per second (example: https://eutxo.org/block/929db73bc3c36f256206090384e514350c76656c4193b5759ec7db4ab2304b9c) because we can add more recipients in our wallets before sending a transaction. Not every chain can do this natively (like Ethereum). You are referring to a transaction used with the smart contract Disperse. What's the distinction? They are saying other chains can do this and don't use it to excuse low TPS. You're just saying other chains *do* actually do this, but just "natively"... how does that matter in any material way? >It's true that you'd have to send 1 ADA with every NFT on Cardano, whereas on Ethereum you don't. That is because NFTs on Cardano are native tokens and on Ethereum they are ERC-20 smart contract tokens. We could mimic this on Cardano, and you'd then not have the 1 ADA requirement anymore, but it would be way less safe. With native NFTs, we cannot get our entire wallet emptied by simply interacting with a malicious NFT, like on Ethereum, for example. Seems like a clunky way to handle security and wallet drainers generally happen irrespective of the NFT implementation. To get fully drained you would have to enable spending permissions for every single one of your assets(which should be very easily identifiable on most wallets before you confirm the txn) or the more likely and realistic scenario is your key was compromised and in that case it would really matter what token standard your NFT was using. Using a "native" NFT wouldn't protect you. >It may also be true that there can still be some congestion on Cardano with token launches (I haven't seen any recently, but I trust your word for it). This is because we prioritized governance upgrades over scaling. Cardano's most important hard fork will initiate within a few weeks, and 3 months after that, the community will have full control over the chain and the currently half-a-billion-dollar worth treasury. Every single ADA holder can vote for representatives that can make proposals and vote for changes, and anyone can become a representative—pretty cool. In contrast to Ethereum, with its off-chain governance model, where only a very small group of people decides which EIPs are final and going to be implemented and which ones are not. Both groups largely will operate the same, through social consensus whether on-chain or not. Taking 7 years to prioritize formal governance is fine, but it should not have come at the expense of scaling. >After the hard fork is complete, we will focus on scaling and specifically implement ZK-rollups on layer 1! And Ouroboros Leios will also result in about 100x the TPS with input endorsers. We already have peer-reviewed papers on these matters and can start developing them after the hard fork with Plutus V3. Within a few years from now, Cardano's maximum TPS will ~100x as a result of these upgrades. Transactions on Cardano have always been very cheap and will always remain cheap, whereas on Ethereum you can easily pay over $50 per transaction in a bull run. It's great that it is currently very cheap on Ethereum, considering their volume, which is impressive and great to see. Within a few years, Cardano will catch up with regard to scaling capabilities. I'll believe it when I see it, but even in 2024 this feels about 3-4 years too late. Also saying Cardano is cheap by solely comparing it to the most expensive blockchain isn't a great look. That's literally just saying "yeah, it's expensive but it's not the most expensive!" >I noticed you like to compared Cardano to Ethereum in your post, but Ethereum does many things worse than Cardano as well. For example, you need 32 ETH to stake independently, and it's locked up; you risk slashing. The team has given up scaling the layer 1 and solving the blockchain trilemma, etc. It does one aspect of staking worse? Most people are fine with liquid staking or custodial staking. This seems like an extremely fringe benefit that 99% of people do not care at all about. >iUSD is not seen as a real stablecoin within the Cardano community because it isn't a fiat-backed stablecoin but a synthetic one. The current fiat-backed stablecoin on Cardano is USDM with about the same market cap as iUSD. do we really wanna get into Cardano stablecoins? Pretty embarassing offerings, once again because of Cardano's obsession with "native" assets they cannot support the clawback that other custodial stablecoins require meaning no USDC nor USDT. USDM has a tiny supply ($3,000,000 on Cardano) and [barely even does 5 figures of daily volume on the most popular Cardano DEX](https://minswap.org/tokens/usdm). Also the stablecoin market cap on Cardano had a QoQ decrease for the first time since Cardano’s first stablecoins were launched in November 2022. DJED is even more of a joke, at least USDM *tends* to keep its peg even though it somewhat often deviates. Also, where the fuck is any of the tooling or dashboards for Cardano? I can't view pool stats on minswap, defilamma doesn't really support Cardano, GeckoTerminal doesn't support Cardano. Can't use Nansen, doesn't support Cardano, they're only EVM and Solana. (are you sensing a theme?). For a 7 year old chain, not a great sign that it's largely absent from almost all of the largest chain-agnostic tooling, assets, infrastructure, etc. Thank god Messari conveniently released their State of Cardano Q2 report 2 hours ago otherwise I don't think I would've ever found up-to-date statistics. >I'm also not sure what you meant by "not economically sustainable" because if the treasury depletes, we will relatively use more transaction fees to add to the treasury. The staking rewards % coming from the treasury halves about every 4 years by design. We currently have over half a billion dollars worth in ADA in the treasury that the community will take full (on-chain) control over; it would be a wonder if that ever depletes, and the proceeds from transaction fees will increase over time. There is nothing economically unsustainable about these well-researched mechanisms. You will *only* use transactions fees if the treasury is depleted and according to https://cryptofees.info/ , Cardano would need to survive on roughly $6,000 per day at the current level of fees and of course, the revenue and treasury balance is tied to the price of ADA, so you're at the mercy of the market as well. No one besides Ethereum has really become sustainable, but Cardano seems to have a very steep uphill climb to get to that point, as they need to simultaneously increase throughput and decrease fees, not an easy task. tldr: Cardano's "native" solutions aren't great design decisions(native NFT, no clawback, eUTXO) and haven't caught on even after 7 years, it's also impacted the crypto application with best PMF: stablecoin adoption, network activity isn't at a point to sustain the network and yet that small level of activity still leads to higher than normal txn fees relative to the industry, and Cardano doesn't seem to have any niche or any aspect that it would be consider an industry leader or even close that would make me hopeful for it's future to change. Cardano maxi's like to say "the market doesn't care about the tech" but the reality is the market just doesn't care about *your* tech because they don't like it and don't find it useful. You look at charts to see what the market cares about, you look on chain to see which tech people care about, and usually they are correlated. [and just some extra figures straight from Messari's Q2 report, sort of illustrates the same things, it's literally the entire "Key Insights" copy-pasted, I didn't cherrypick anything](https://messari.io/report/state-of-cardano-q2-2024): Key Insights * Revenue (USD) decreased 44.3% QoQ to $0.74 million. This was impacted by Cardano’s 27.5% QoQ decrease in average daily transactions, which fell to 31,800. * TVL (USD) fell from the all-time high set in March, down 41.2% QoQ to $219 million. * Stablecoin market cap fell for the first time ever in a quarter, down 26.2% QoQ to $16.4 million. However, USDM and MyUSD emerged as their market caps grew 2,557.6% to $3.2 million, and 694.8% to $2.1 million, respectively. * ADA’s token price decreased 39.7% QoQ to $0.39, with its market cap rank falling from 9th to 10th. * The NFT sector continued a downtrend that has sustained for over a year. Average daily NFT sales fell 57.4% QoQ to under 730, while average daily NFT volume (ADA) fell 44.2% to 150,000.
The SEC does not give a shit about what asset you use to reward bug bounties. I think this was just the only stablecoin option they had besides DJED, which is not really even a stablecoin and also has far less liquidity.
lol you think DJED is a stablecoin? I mean, it surely is trying it's best to be stable. Maybe when it doesn't lose its peg constantly, it might actually break six figures of trading volume. 🤣
Well It depegged 400% upwards little time after launch. Before, DJED also depegged. As well as USDA. A simple Google search, dude.
There are a couple of them: USDM, USDA, DJED, etc. Some of them fiat backed some algorithm.
Stablecoins issued on networks like Cardano and some others cannot be frozen or blocked by the issuer, it's just that Ethereum is outdated tech. Stablecoins like DJED are backed by onchain assets, so there is no custodian to run off with the funds. In time people will learn.
Seeing as you got butthurt about it, here are some dApps running on Cardano; Liquid - Lending DJED - Decentralised stablecoin Minswap - DEx Indigo - CDP platform Iagon - Decentralised data storage and compute platform Revuto - Subscription management service That's six, so you are woefully out of date, and I'm not even scraping the barrel, there are loads more but I'm not sitting here arguing with someone who is behaving like a child. Goodbye
ca = contract address. I found it. It's 39.5% APR, which would be about 3% yield per month. Only .45% of that APR is from actual volume, which would be ~.004% monthly yield from volume. The rest of the 38% appears to be ADA and MIN that is just given out by the protocol. Very far from 50% monthly yield but honestly seems like a pretty good stablefarm besides the fact that DJED is allergic to holding it's peg(which doesn't matter too much in this case as long as it doesn't go down, it's just really funny) and the fact that 99% of the yield is from a subsidy instead of from volume. https://imgur.com/a/wXKpXqu
Idk what a CA is, but you're free to look at the rates on stable coins on Minswap. I'm farming the DJED- iUSD pool, and it's printing ADA for me 🤷♂️.
DJED an algorithmic stable coin and just recently USDM backed by fiat..
Also check DJED, capital inefficient but heavily over collateralised and fully onchain
>I wouldn't say Cardano maxis are any more zealous than those of other chains! They're all zealous, Cardano maxis especially are more idealistic than others. >Oh, and as for stable coins there is the algorithmic over collateralised DJED and just recently USDM (Mehen) I said "good" stablecoin. DJED looks less like a stablecoin and more like a good stock to swing trade... I mean, you can't even call it a "depeg" as it hasn't ever stayed on peg for longer than a day. https://www.coingecko.com/en/coins/djed and you literally just got USDM, time will tell if it can be good. >So if you think it has a sky-high valuation - What about Shib and Doge! They also have very high valuations. I'm not saying ADA is the only overvalued asset, but it's had much of it's future growth priced in since 2017 when it was a top-5 coin as a smart contract platform without smart contracts. >As for Charles H. he will have less of a role in the next Voltaire governance era . Doesn't really matter, Vitalik has less of a role (I don't even think he has a role at EF anymore) but people still perceive him as ETH's leader. Charles has to stay out of the spotlight entirely and I don't see that ever happening.
I wouldn't say Cardano maxis are any more zealous than those of other chains! Oh, and as for stable coins there is the algorithmic over collateralised DJED and just recently USDM (Mehen) So if you think it has a sky-high valuation - What about Shib and Doge! ?? As for Charles H. he will have less of a role in the next Voltaire governance era .
> They already had one, DJED, over-collaterized stable coin backed by SHEN. And can't maintain it's peg to save it's life. DJED struggles to go seven days in a row without falling below $0.98 or trading above $1.02. The more you zoom out on a price chart, the wilder it gets. Cardano deserves a stablecoin that's at least between between $0.99X and $1.00X like real ones.
They already had one, DJED, over-collaterized stable coin backed by SHEN. This one is backed by fiat.
I'm using DJED plenty and making a killing.
Cardano fanboys are going to downvote this into oblivion but for me biggest issue is that despite being around forever the Cardano ecosystem is still very underwhelming and mostly just unused vaporware. People here hate Solana but despite its issues it's actually used and has lots of interesting projects running on it like Render and Helium. Or you could look at the Cosmos ecosystem with Celestia, Akash and Osmosis. What does Cardano have? They launched a stablecoin (DJED) that isn't used by anyone and wasn't really stable either. You can't even send popular stablecoins like USDC or USDT via Cardano.
There are also algorithmic stable coins which don’t necessarily require holding the fiat asset in question but they often depeg mostly because they are usually under collateralized. DJED’s peg mechanism is interesting and relies on over collateralization and is maintained purely by a smart contract
you can always trade 1 DJED for 1 dollar worth of ada on [djed.xyz](https://djed.xyz) . So djed depegging is not really an issue. The only thing that djed needs is more liquidity.
DJED and iUSD are both badly depegged. Especially iUSD.
He says this because they can't get any normal legit stable on their platform and all they have is DJED, which trades between like $0.96 and $1.06 and iUSD which was like $0.70 last time I checked.
[DJED](https://www.coingecko.com/en/coins/djed) tries to stay pegged to $1 Challenge [IMPOSSIBLE]
anybody know what happened to the DJED stablecoin today? looks like it completely depegged. shows basically at 0$
Not sure about CEX's as they tend to shut down trading when something goes out price range with other exchanges/oracles. With DEX's I have had a decent amount of luck with following stables. Right now I am just messing around with DJED and iUSD on Cardano and am up about $500 in about 1 month. Would love to see another flash USDC crash lol. Made some decent money on Polygon when that happened.
DJED has been all over the place. You can look at the price chart and see this. *Today* it's holding up. It was trading at $0.97 in November. $1.03 in October. > but it lived through the bear market without major issues. It's traded between $0.97 and $1.11 for the bear market. That's a major issue.
DJED is holding up nicely considering it’s relatively low liquidity and it being introduced in a bear market. People thought it’s going to turn out like the Terra/Luna fiasco but it lived through the bear market without major issues. I got some of the backing currency (SHEN) which is basically a long for ADA and I’m up 2x and additionally get some of the minting fees. Not saying DJED couldn’t do better, but longing ADA this way turned out to be one of my better crypto decisions.
DJED is a low liquidity stablecoin, 0.98 is totally normal and not a big concern. It has been 0.98 many times and it never killed it
ADA for me. Dumb slow progress on building out the smart contract platform and from the outside looking in... once they get there it won't be some amazing thing. It'll just be bog standard ass smart contract platform similar to stuff that's been around since 2019. Here's one thing. Just one thing. Recently Hoskinson (Vitalik of ADA) tweeted that Circle wanted to paid to bring USDC to Cardano and he was like *I resisted and fought the good fight*. Meanwhile back on Earth, Cardano has two stables coins: DJED and iUSD. iUSD is some weirdo synthetic algo shit that current trades at $0.90. DJED traded at $1 for maybe 48 hours post launch and has been between $0.96 and $1.10 ever since. A defi system with no functional stablecoin, a pillar of defi, and their Vitalik is proud of this and shunning legit players not engaging in algo fuckery. That's ADA. Slow as shit, lacking things other ecosystems get at launch or within months, and when it shows up it's a bad version of what everyone else was doing like 3 years back. I don't dump because... Cardano is a shit show but it's a top 10 token and I live on [defillama.com](https://defillama.com). I've seen it rise from like #100 on defi TVL to #12. #12 when they don't even have a functional stablecoin. They were rising when all the lending protocols were bizarro anti-Aave no pools, weido shit. There is a dedicated user base that will eat endless amounts of meh shit and I wonder what they'll do once it has a usable and complete ecosystem that covers all the basics? Having said that, people call it a grift, scam, con, etc. I don't believe any of that. It's legit. It just sucks.
True, however COTI is the issuer of the DJED Stablecoin on Cardano FYI. Could become an alt next run, or the opposite lol
Really? I haven’t seen SHEN or DJED really take off
I’m missing Ergo’s SigmaUSD model, also used in Cardano’s DJED / SHEN stablecoin. While Terra/Luna went up in flames it proved pretty stable. It’s purely algorithmic.
Circle needs the option to blacklist addresses in sense of freezing funds, which is required by some regulators, and some use cases require it by its own nature. Most blue chip blockchains offer you a way to design a smart contract in a freezable and non-freezable way, Cardano offers only the latter. You get a little more safety, but lose out on all the potential use cases. Moreover, native assets like DJED aren't that safe - you have still a centralised entity behind it which can blacklist your coins, an entity which can also collapse. Some businesses will simply require the option to freeze a token they issue on a blockchain. For example, if airlines issue their miles on a blockchain- there is a real chance that they might need to freeze them because of fraud, someone loses the gold status etc. Some Cardanias defend such design as "pure crypto ethos", but limiting choices is always bad imho. Besides, there is also a CIP (Cardano improvement proposal) for it, with goal of changing it. Once again, builders seems to have quite different opinion about it than the average speculator. Although, once it gets implemented in 2-3 years you gonna see posts here similar to the hydra post here, big "novelty" USDC on Cardano, just like a L2 scaling solution in 2023...
For sure. Here lately been using Minswap - ADA/MIN ADA/DJED and Osmosis OSM/USDC. Usually the LP pools I used on Celo and Algo all had .3% (or was it .03%?? Idk really know but low) swap fees across the board. Minswap has things set up a little differently when showing their percentages. So just trying to understand more and how much of it I'll actually see vs rewards vs just don't provide LP.
I once bought DJED because I was seeing it pop up everywhere.... It ook 3 weeks and a comment on Reddit for me to realize it was a stablecoin.
Yup. Not much liquidity yet unfortunately. They’d deserve more love. In the other hand this clearly shows how as also algorithmic stable coins can cope with such circumstances. Since the Luna debacle they don’t have the best reputation in this sub, but that only showed the logic flaws for that one stable. The design of DJED is based on the older SigmaUSD of Ergo and that in turn has been around quite a while and proved to be stable even in extreme conditions. So there’s a point for trustless, algorithmic stables, though they are not without their own issues. For example the backing coin of DJED doesn’t seem to quite have the right risk/reward ratio yet. Anyway I’d like to see such projects evolve and thrive, rather than some centralized company coin as heartening as that may be as far as adoption is concerned.
Hi! I consider myself a Cardano fan (not a Maxi), and I like criticism because, if it is constructive, it can make us all better. Cardano is not the cheapest Layer 1 out there, but it isn't expensive. An ADA transfer from wallet to wallet costs \~0.17 ADA, so \~0.05$. This doesn't make it expensive. Compare it with ETH, BTC, or a bank transfer for example. Also, because of the EUTXO model, you can transfer 20 Cardano Native tokens + 20 NFTs, with 1 transaction, and you will pay \~0.22 ADA for fees. Furthermore, the blockchain is very Decentralized with over 1200+ Stake Pool Operators (SPOs), which makes it a little slower comparable to more centralized Layer 1 blockchains (like Solana or BSC). Also, the minimum fee of 0.17 that you pay, is needed, in order to secure the chain. So, this fee protects the chain to not be bloated from bots, and also acts as a passive income for stakers, upon the inflation that comes from staking. And, because I said staking. Cardano has the best staking mechanism in all the Cryptocurrency space. There is no lock-up period, no slashing, no cons. Your ADA stay liquid in your wallet, all the time. Now, as speed goes, most of the time, the wallet-to-wallet transfer takes less than 30''. When a big mint happens, an epoch changes, or there is a big hype with a native token (like the meme-coin mania that came to Cardano), it can take a little longer, but not frustrating long. This was a big issue last year, before the Vasil HFC. Also, Layer 2s, like Hydra, and Mainnet solutions like Input Endorsers, will help the scalability of the chain and are in the works right now (an early version of Hydra is on mainnet right now). As far as TVL go, Cardano was one of the lowest chains in term of Total Value Locked in the last Bull Market. But, building, slowly, but steadily throughout the bear market, nearly every week there is an All Time High for TVL for Cardano, in ADA terms. If you look at all the chains, in their native tokens terms, how much TVL they have, you can see a steady decline as they entered the bear market. Cardano did the opposite. Also, Cardano, doesn't have VC money, as you mentioned, so it is not hyped, or over-inflated in TVL. So, this metric mirrors the gradual, natural and healthy, improvement on the chain. For the stable coins, you are right. This is a big con right now in Cardano. It has only 2 stablecoins, not big in Marketcap and none is FIAT-backed, like USDC or USDT ( (DJED is algorithmic, iUSD is synthetic). The problem is, that if Circle or Tether want to launch on Cardano, they need to "invent" technology, because, in Cardano, its tokens inside the chain are native and not smart contracts. This is a HUGE advantage in security terms. This means that you can interact with any Cardano coin or NFT, and there is no danger of your wallet being drained. But, this means that they must find a way to build smart contract, in EUTXO coin, transactions, because they will want to "freeze" their tokens, when they feel they should. So, yes, stables, is a problem. And the solution in Cardano, $USDA, developed by Emurgo and Anzens, froze because of a lack of regulatory clarity in the US. I hope soon enough the regulatory landscape will be more clear and it will launch. So, to conclude, Cardano is not perfect. It isn't as fast as Solana, nor has the same liquidity as Ethereum. But it is based on technology that was first invented, tested, and then applied. Also, being one of the most decentralized chains out there, and their tokens and NFTs being native and not smart contracts, makes Cadano one of the most secure blockchains out there. Lastly, its huge and passionate community, which will take over the chain after the age of Voltaire (the Governance Era of Cardano), will make it even more decentralized. Personally, I use it every day, and I am extremely happy being part of its community. To be a part of one of the very few blockchains that remain true to the ethos and philosophy of what makes Crypto an improvement to the Current Financial System. In any case, and whatever Blockchain suits you best, I hope that it will succeed. Because, all of us here, despite some different views, want the same thing. To achieve financial freedom. So good luck achieving that!
ERGO. Fair launched so no insider pre-sales , PoW UTxO, ASIC-resistant, sigma protocols built in so it has optional privacy, its Oracle Pools are more efficient/safe than the rest of the industry's existing models, the soon-to-launch Rosen Bridge will revolutionize bridge tech, its native algorithmic stable coin also survived this entire bear market without de-peg and was the model for Cardano's DJED, and it also has demurrage ensuring the supply stays stable over time. TLDR; if an ASIC-resistant Bitcoin had smart contracts/DeFi, optional Monero privacy, improved Chainlink oracle capability and a permanently stable supply.
I believe I saw a notice that DAI was moving away from USDC and such. DJED doesn’t use any of that. Purely algorithmic.
not all of them all centralized. Look at DAI or DJED
I’m hoping DJED can continue to perform well, we need a true decentralized stablecoin.
I know how DJED works. I was just saying the market price being above $1 is not an arbitrage opportunity as minting is turning off, hence why the market price is above a dollar in the first place. When the reserve ratio goes above 400% then people can mint again, but until then, no arbitrage opportunity.
Being unable to mint is why the market price is depegging up. Arbitraging DJED is primarily done through the app, but again, the app is preventing minting, meaning arbitrage through minting DJED and selling it in the market (thus bringing the market price down) can't done. If this actually was an arbitrage opportunity, whales would have done it already.
Long 100x DJED. No financial advice.
The deppeging so far has been to the upside, DJED varied its value between $1.005 and $1.08 during the past three weeks.
DJED has not depegged from $1. You can always redeem your DJED on djed.xyz Depegging to the upside on a DEX is a result of demand and low liquidity. Liquidity is being build over time
DJED is currently trading at $1.07 I'm not sure this is an unminting challenge as much as it is an arbitrage opportunity
tldr; Cardano's stablecoin DJED is facing challenges due to a decline in its reserve ratio. Users have encountered problems with depegging and unminting since DJED's release on the mainnet. The reserve ratio has fallen below the safe threshold, causing the stablecoin to depeg on all decentralized Cardano exchanges. COTI, the issuer of DJED, acknowledged the issue and stated that the stablecoin has failed to maintain the required reserve ratio. The Cardano community has expressed mixed reactions, with some criticizing COTI for insufficient liquidity and others defending DJED's performance. Measures to maintain the stablecoin's value have been suggested, including ceasing minting SHEN reserve tokens. This development comes after DJED was recently used for lending and borrowing on Liqwid. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
I have faith in DJED, overcollaterized with a big crypto is probably the lesat likely kind of stablecoin to collapse.
Liqwid, a Compound / Aave equivalent. Minswap / Sundaeswap / Wingriders, they are DEXes Indigo, a synthetics platform... Not sure if there's one on Eth DJED, a MakerDAO equivalent And more cardanocube.io
I only know one memecoin on Cardano : Hosky To be honest I only know 3 coins running on Cardano: ADA, DJED and Hosky Are there any other notable tokens running on Cardano?
DJED and SigUSD is the way to go.. Overcollaterized algorithmic tri-coin systems ftw.
When did DJED fail? During the USDC dust-up, many stables lost their peg as they held USDC as collateral.
Their TVL is growing and they now have a stable count in DJED which should help them thrive
>You might be taking my posts a bit too literally, it was just a joke about articles on Cardano now claiming it’s an EVM in response to the OP, but I left off the /s. Yeah, I highly doubt that was meant as a joke, and Cardano didn't claim anything. A single dev did, and some agreed to it. This isn't the first time you went for the "it was a joke". >We often have fairly constructive and useful conversations, I’ve got no gripes with you. [Ignoring me when I call you out for disinformation](https://np.reddit.com/r/CryptoCurrency/comments/11fbdfn/comment/jasbowe/?utm_source=share&utm_medium=web2x&context=3) isn't "fairly constructive and useful". [Posting erroneous articles about DJED](https://np.reddit.com/r/CryptoCurrency/comments/10v78i0/comment/j7geuad/?utm_source=share&utm_medium=web2x&context=3) isn't "fairly constructive and useful". [Lying about COTI taking all the fees for DJED](https://www.unddit.com/r/CryptoCurrency/comments/10pxepq/comment/j6munfc/?utm_source=share&utm_medium=web2x&context=3) isn't "fairly constructive and useful". [Falsely saying the MELD isn't releasing on Cardano because it is "dead on arrival"](https://www.unddit.com/r/CryptoCurrency/comments/10c6xwj/comment/j4f1goi/?utm_source=share&utm_medium=web2x&context=3) isn't "fairly constructive and useful". [Blocking me for asking you to explain yourself](https://www.unddit.com/r/CryptoCurrency/comments/wbi144/comment/ii6z584/?utm_source=share&utm_medium=web2x&context=3) isn't "fairly constructive and useful". [Calling Cardano a scam](https://www.unddit.com/r/CryptoCurrency/comments/vz5pnj/comment/ig8ag4f/?utm_source=share&utm_medium=web2x&context=3) (and going for the "iT wAs A jOkE") isn't "fairly constructive and useful". You never responding to what I say isn't "fairly constructive and useful". Point to one isn't "fairly constructive and useful" we've had, because I honest to God cannot find one. >As for misinformation, the original point which you’ve been going after me for some months now was my claim that the Meld CEO had implied that launching on Cardano mainnet was going to be difficult and that they were considering Avalanche as a Plan B. I was referring to you posting an article claiming DJED crashed to 13 cents was the misinformation I was talking about. As for MELD, I never once claimed you said that MELD launching on Cardano would be difficult (according to the CEO), so that's just a lie. Show me evidence saying otherwise, though you either going to: 1) Block me again. 2) Not respond at all. 3) Reply, but don't actually address what I'm saying. Also funny you don't deny your cultism. At least your honest about something.
ADA, a coin that's in the top 10 with market cap, has the worst DEFI ecosystem. I'm using LIQWID, the only viable DEFI protocol (unless there's a better one I'm not aware of), won't let you add collateral, has a minimum of lending or borrowing 100 ADA or DJED. So in order for me to get my liquidation threshold to a viable safe spot I have to spend hundreds of dollars. ALGO, DOT, MATIC, etc have monumentally better DEFI's
DJED through Cardano's network. High decentralization rating ✅ High security rating ✅ Low fees ✅ Strong community ✅ Positioned for growth ✅ Has stablecoin ✅
Also, USDC stable coin debacle where others were effected due to holding USDC, DJED had no such holding with it's mint/burn mechanism.
DJED is not decentralised - it has a CEO, and a company called COTI who runs it on their own servers and take fees.
tldr; COTI CEO Shahaf Bar-Geffen explains why DJED didn’t lose its peg during this month’s market turbulence. He says DJED will migrate to other blockchains because all decentralized finance ecosystems could use a reliable stablecoin. COTI plans for DJED to be available on blockchains like ETH, Binance Smart Chain and more. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR. Get more of today's trending news [here](https://coinfeeds.substack.com).*
Interesting move by COTI. I wander if this will create more demand of DJED?
Most posts I read here about Algorithmic stablecoins directly refer to UST and Luna collapse. Which is very fresh in a lot of people minds. DJED cannot mint new ADA, this is what caused the death spiral of LUNA - the UST mechanism had the power to burn and mint LUNA in order to meet the buy/sell demand of LUNA/UST. While DJED can only lock/unlock ADA in a smart contract.
Cardano has a very big VC arm called Emurgo and then there’s Charles’ VC arm called cfund as well. DJED is run by a private company called COTI that is backed by the IOG venture fund: https://iohk.io/en/blog/posts/2021/07/28/a-closer-look-at-the-cfund/
According to this there’s only $2.5m DJED which is absolutely tiny? How much of that is owned by COTI? https://djed.xyz/
Since DJED was released TVL doubled on Cardano while most other chains are flat or lower, I'd say DJED is off to a good start
DJED was fine as it had no exposure to USDC.
DJED has been fine throughout this, so I'd be looking with hope towards that for the future as the project grows. But id trust Tether over USDC. You can't beat organised crime as a way to keep your coin stable.
Anything CH days, he is pumping his ADA and ADA related bags. In this instance, he's trying to highlight DJED, the newly issued algorithmic stable coin on Cardano.
DJED is holding strong at $1.03
DJED is one of them . It's backed only by ADA
The peg is not necessarily an issue. the real issue is the non-existent trading volume. 1 million for DJED compared to 1.6 billion of TUSD and 702 million of USDD.
btw i am surprised other L1 haven't implemented their own version of DJED, the research was published years ago i suspect now that people are watching the success of sigmaUSD and DJED throughout this bear there will be an explosion in these new overcollateralised, decentralised algo stablecoins surely it's just a matter of time and we are all better off for it
you are comparing a 20% ponzinomic "stablecoin" to a peer reviewed 4x to 8x overcollateralised and decentralised stablecoin that has hard limits to how much can be minted/burnt based on a series of factors like overcollaterialisation, token price, token circulation, etc LUNA didn't bother with mats and game theory.. but when you do... it works LUNA died while SIGMAUSD (the 1st DJED) kept peg like a champ
i think the research behind DJED will be setting a new standard of crypto stablecoins no doubt the rest of the L1 world is looking at DJED and coming to the conclusion that the tech works the research was published like 2 years ago, i predict there are going to be an explosion of DJED stablecoins throughout crypto and WE ARE ALL better off for it remember why crypto was created, to escape the financial oppression of our slave masters now it may seem ironic pegging to a slavecoin to escape financial oppression but it's an incredibly useful tool to ride the waves of volatility while we transition to the peoples money, once the old financial order is destroyed crypto will be the stablecoin
DJED. ERC20 and ETH protocols are hot garbage.
yeah, of course, but a stable coin enables you to accumulate more BTC it's not needed but it's pretty damn useful i would never go all in a stable coin but it's very nice to offset/hedge some of you holdings as insurance for the market volatility a legit working decentralised algo stablecoin is exactly whats been missing from crypto cavet - DJED smart contracts controlled by the COTI group, so there is still some centralisation at this point, when the final version is released the smart contract contol will be released to a DAO - and if they don't do that then DJED will be replaced the tech has been battled tested throughout the bear and it's pegging like a champ i don't understand why other L1 chains havent copied the design yet, the research has been published for 2 years now!
that's because you didn't get the part where it is also decentralised as well as 4x - 8x overcollateralised it's brilliant tech individuals all over the world sending a series of smart contracts their ADA and in return they get synthetic USD sure, you are "guaranteed" 20% returns like previous ponzinomic stablecoins but in the right market conditions while purchasing at opportune times it can return so much more any who bought DJED recently is doing well and for every cent ADA drops they'll be able to accumulate even more
DJED peg is all the matters crypto can burn :D
DJED powered by COTI. Real stablecoin!
DJED powered by COTI, had no problems 1$ all the way.
DJED is currently pegged at 1.12
Irrelevant coin creator tries to tell OG coin to be more like his baby. DJED has already depegged despite its 999x overcollateralisation. And after the founders put in $10million at launch it’s now issued $10.3miillion and you can’t mint more than $80,000 at the moment because of lack of collateral. Absolute laughing stock.
Yea, DJED is over-collateralized burn/mint Algo using DJED/SHEN and ADA. The other stables that are having issues hold USDC as part of their collateral or are tied to USDC. Also why USDT is fine at the moment, because it's a blackbox that no one knows how it operates.
And it’s stablecoin DJED appears to be doing just fine through all this
Cardano's DJED is doing just fine, just saying
DJED and SIGusd rule the day
No, they actually have almost nothing in common. LUNA was directly controlled by people, had Terra as it's backing (but the only value to Terra was buying LUNA, and the multisig owners could print it at will. SHEN is the closest equivalent, and can't be printed except though minting which requires locking ADA. Neither SHEN nor ADA can be printed to defend the peg, and it can't death spiral because the value of the collateral (ADA) does not depend on the value of DJED the way LUNA depended on TERRA.
TLDR; USDC assets held in Tradfi, Tradfi is closed over the weekend so team can't do anything, any stable holding USDC in reserve is affected right now. USDT(no idea what it holds) so is SAFU. ​ ​ Well the problem with keeping your assets and reserves in Tradfi is that you abide by tradfi hours (banks are closed on the weekend). The majority of USDC assets are safe in other banks/black rock etc, why all those other tokens are affected is because they hold some USDC in their reserves. USDT holds ?????? but not USDC. DJED on cardano is a burn/mint mechanism involving SHEN/DJED/ADA and is overcollaterialized so it's not having 'issues'.
With DJED, it has depegged by over 2% 4-5 times in the last month, so though it is up now, it is hard to tell if this is just the normal course of things for the coin or not. I admit, it is not something I use. I also excluded USDD.
So much for thinking backed is better than algo. Oh wait, DAI down 10%. Can DJED make it?
There is an algorithmic stable coin on Cardano now, called DJED. I have no idea if it's good (I don't use stable coins), but it's supposedly extensively peer reviewed and not centralized bullshit like USDC.