- Djed didn’t lose its USD peg in the course of the current turmoil within the stablecoin market,
- Djed’s TVL noticed features of 17% for the reason that USDC depegging saga,
Cardano’s [ADA] stablecoin Djed, which launched earlier this 12 months, could quickly develop to different layer-1 networks like BNB Chain [BNB] and Ethereum [ETH].
Learn Cardano’s [ADA] Worth Prediction 2023-24
The CEO of COTI, the agency which developed Djed in collaboration with Enter Output HK (IOHK), stated that the growth was all the time a part of the challenge scope however they’ll work in direction of it with higher focus.
The CEO added that they obtained a number of requests from non-Cardano DeFi protocols to have the stablecoin launched on their blockchains.
“Djed might be on different chains as effectively. Clearly on Ethereum and Binance Good Chain simply to call a couple of…as a result of defi ecosystems want a stablecoin that’s steady and dependable.@shahafbg $Djed $Shen $Ada $Coti @COTInetwork pic.twitter.com/eS8j3bxHNJ
— 𓊽 Djed 𓊽 (@DjedStablecoin) March 20, 2023
Likelihood to thrive?
The current developments within the stablecoin ecosystem put the main focus in direction of entities which remained dependable all through the chaos. Considered one of them was Djed, which didn’t lose its USD peg.
Infact at one cut-off date, it traded at a premium towards the USD, per date from CoinMarketCap. In periods of excessive demand, stablecoins are inclined to go above their pegged worth.
However, cash like USD Coin [USDC], DAI, and FRAX misplaced their greenback peg in the course of the turmoil.
Djed had a 487% reserve ratio, implying that every Djed was backed by greater than 4 instances its worth in ADA. There have been greater than 33 million ADA cash in reserves.
The over-collateralization mechanism was meant to supply safety to Djed towards fluctuating market situations, much like the one which led to a downfall of TerraClassicUSD [USTC] final 12 months.
Nonetheless, it needs to be famous that Djed was nonetheless a newcomer on the horizon. Its buying and selling quantity was a fraction of that of different established cash like USDC and DAI, which performed an enormous half in making it resistant to macroeconomic triggers.
How a lot are 1,10,100 ADAs price right now?
Djed’s contribution to ADA
Djed’s whole worth locked (TVL) noticed features of 17% for the reason that USDC depegging saga, knowledge from DeFiLlama revealed. On the time of writing, it accounted for 8% of the entire TVL on the Cardano blockchain.
At press time, ADA traded at $0.3449, a marginal enhance of 0.15% from the day prior to this. Bullish sentiments for the coin have been again because the variety of lengthy positions vis-à-vis the quick positions elevated.