• Cardano’s stablecoin Djed has become the fourth largest project in the ecosystem.
• It was developed by Input Output and COTI networks and allows users to borrow and use it as collateral.
• Aada Finance is working on a full integration of Djed, which will allow users to borrow DJED and SHEN tokens.
Cardano’s Stablecoin Djed Rises to Fourth Largest Project
Djed Becomes Cardano’s Fourth-Biggest Project
Cardano’s [ADA] stablecoin Djed which launched on 31 January, has surpassed many projects in the ecosystem to become the fourth largest. Created by the blockchain’s development group Input Output in collaboration with the COTI network, Djed serves as the algorithmic stablecoin for Decentralized Applications (dApps) in the Cardano ecosystem.
COTI Team Pleased with Milestone
COTI, the blockchain enterprise provider revealed details of the development via a 2 March Medium post. According to their blog post, they were glad about this milestone and are now focusing on increasing adoption of DJED by creating more use cases for it and its reserve coin Shen. In February, Djed boasted of a 600% reserves ratio with 27 million ADA backing the stablecoin. With this over-collateralization mechanism, Djed would be able to remain stable irrespective of market conditions.
Djeds Contributions to Total Value Locked
It is also significant that DJED has contributed significantly to Cardano Total Value Locked (TVL). This metric shows how many unique deposits are made into an ecosystem by protocols. As of this writing, DeFiLlam showed that DJED’s addition to TVL was around $10.49 million despite its decline in last 30 days. This rise helped DJED gain 9% of total Cardano TVL according to Adaverse News | Cardano and Ergo News (@AdaverseNews).
Aada Integration With Djeds
Further details from COTI release disclosed that they were preparing a full integration with Aada Finance which is a lending protocol within Cardano’s system. This full implementation would allow users not only borrow but also lend both DJED & SHEN tokens through Aada Finance platform .
Conclusion
All these developments point towards increased usage for DJs reserve coins along with its over-collateralization mechanism making it resilient against market fluctuations . The team is focusing on expanding its adoption & usefulness while ensuring secure transactions among other features thus making it one of major projects within Cardanos eco system .