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The stablecoin Djed has only 882 hodlers.
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> 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.
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.
Imagine myself sitting at a dim-lit table, dressed like a scryer - old, western apparrel in-between white trash and a countryman. I'm 95% blind in one eye, and I seem to stare off past the window into distant spaces. The people lean in to ask me questions about the crypto space. A brief pause before I whisper "shenanigans...." "What did you say, old man?" "Shen-an-igans..." A glass falls over and spills ice onto the table. Some people are livid. They get up and pace around. "SHEN-AN-IGANS..." I yell, my eyes bulging, red-faced. The future has been declared. 2-3 more years of nonsense. And then I *poof* into thin air like the apparition I always was, so that I can go haunt Jerome Powell for the next few years, sit on his shoulder and whisper in his ear "where you gonna go for lunch after this meeting, Powell? Arby's or Jimmy Johns... decisions decisions. But they're *both* mid, Jerome... why don't we go to that little chinese restau- no, wait... let's go to that food truck" And JPowell loses his mind.
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.
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 am well in the red like most of you. Here is my journey. ETH==>ICE==>ETH==>SAND==>LRC==>ADA==>SHEN I'm gonna keep holding the Djed reserve coin for a while. It is highly correlated with ADA
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.
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'.
Don’t forget CEX and Centralized Stablecoins I really feel the industry needs a multi-chained DEX and a decentralized Stablecoin It’s why I follow RUNE and the DJED/SHEN projects closely.
To be fair it also has a tokenomic that helps a lot mantaining the ratio. Basically you deposit ADA that mints SHEN (an intermediary minted to represent the ADA collateral, since ADA can't be burned). On top of SHEN you can mint DJED wich is the real stablecoin, until the collateral reaches a minimum of 400% (the maximum is 800%). IF the SHEN collateral goes below 400%, wich it can do if ADA price tanks, then you can only do 2 things: \- Burn Djed for Ada \- Deposit Ada to mint Shen However if the opposite happens, meaning that ADA increases value so much to reach above 800% collateral then you can only do these 2 things: \- Mint Djed \- Burn Shen This helps a lot with mantaining peg, from there if the treasury keeps a portion of the fees collected to rebalance the ratio every now and then after big moves then it's extremely hard for it to lose its peg.
I realized I made a mistake and wanted to point it out in case it makes a difference to you. My whole above comment is basically wrong. So it's not like a lending platform. It's more like a DEX where instead of swapping tokens, you're minting/burning them. So literally minting djed is the same as selling ada for usd (to dispense with any skepticism surrounding the protocol's trustworthiness). The concept is that simple as far as using it goes. There are more mechanics involved when it comes to SHEN and how the peg is maintained and I'm still trying to get a handle on that whole system.
I was really bullish for this project & i still am, but the attraction just isn't there. I have a LP pool for ADA/SHEN and there's hardly any traction on it.
Not exactly an algorithm stable coin, not in the sense like LUNA. It's very overcolaterized with SHEN as a reserve (which I bought a bunch of). It seems like a pretty decent project but DJED isn't the best name for a stablecoin and without a decent DEFI platform for borrowing and lending it yet on ADA I'm not quite sure what it'll look like long term.
> Charles cares immensely about crypto as a technology and wants nothing but the best for it Not really, he only likes money and loves to flex about it. He is milking ADA moon boys pitch selling technology he and his team "created" but are just recyclated ideas from other projects, hydra is just lighting network, to give an example, or sidechains, an idea from 2017 that no one is working on nowdays. Cardano is full of buzzwords of things that it supposed to do but on reality cant do before it gets clogged. DJED is one of those example, there is no smart contract running that you can interact with, its just COTI minting a native custom token that is backed up by the ADA and SHEN, there no is algorithm or AI controlling the supply
Djed is Decentralized, It is entirely on-chain and managed by smart contracts. Djed doesn’t rely on any centralized servers or entities, and users provide collateral by buying SHEN. Djed can never be frozen, is always redeemable, and can be accessed by anyone from anywhere.
tldr; Cardano-powered algorithmic stablecoin Djed ($DJED) is now backed by over 31.5 million $ADA tokens. The stablecoin was launched last week and is backed by its reserve coin, $SHEN. By buying and selling SHEN, users can contribute to the stability of the currency peg of Djed. *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).*
Agree, terrible name. They went with Egyptian (DJED, SHEN) mythology and it's silly choice imho. So far decent amount of research and testing went into DJED. We'll see if they will be able to pull overcolaterized stable coin successfully. We need few sharp drops and blood on crypto streets to test it properly. Time will tell.
Pretty much, staking ADA natively either in Yoroi or Daedalus completely liquid and through delegation (zero risk of someone going away with your coins) is unbeatable. Also now that DJED is out you can make a lot more offering liquidity through SHEN for a minuscule fraction of the risk.
It's not so easy to use crypto for buying things, but I have in the past and might even book my summer holiday this year with crypto. I have also been paid in crypto for supporting projects with tasks etc. I stake my crypto and have been for nearly a decade, so I'm securing protocols with it. I'm not into art NFTs, but I have some functional NFTs. Other tokens I often get from airdrop type arrangements and convert them on DEx. Most recently minted SHEN so other users will be able to mint the DJED stablecoin.