A New Era For Stablecoins Begins: Djed is Live on Mainnet!

Published in

COTI

4 min readJan 31, 2023

After over a year of preparations and development, and following a successful security audit, we are very proud to announce that Djed, the overcollateralized stablecoin on Cardano, is now live on mainnet!

The much anticipated public mainnet launch of Djed heralds a new era for stablecoins. Launching Djed is a significant milestone for COTI, the Cardano ecosystem, and for the DeFi ecosystem as a whole. Being a decentralized open-source protocol, Djed is community-driven, as it brings an opportunity for users to hold, mint, and burn DJED and SHEN.

The Djed platform can be accessed at djed.xyz. DJED is also available on MinSwap, Wingriders and MuesliSwap, and we also expect it to be listed on other top platforms in the Cardano ecosystem. Furthermore and as recently announced, Bitrue will be the first exchange to list DJED and SHEN.

With over 40 partnerships to enable its proper utilization and adoption, DJED will unlock opportunities for the Cardano ecosystem around Defi, Payments and more.

Djed has a unique mechanism of overcollateralization by 400%-800% with on-chain proof of reserves to protect its value in different market scenarios.

DJED is pegged to USD, backed by the base coin ADA, which is an independent asset, and uses SHEN as its reserve coin. In a case where the reserve ratio drops below 400%, the platform will prevent the burning of SHEN, and the minting of new DJED (since there is not enough collateral in the reserve). In the case that the ratio goes over 800%, users will not be able to mint any more SHEN, however, they will still be able to mint and burn DJED. In any scenario, DJED is always redeemable.

As a result of providing liquidity, SHEN holders stand to benefit in a variety of ways. As recently announced, Djed 1.1.1 will include delegation rewards from day one. Along with DJED and SHEN mint and burn fees, SHEN holders will also be entitled to LP rewards and Farming rewards from DEXs such as Wingriders, Minswap, and MuesliSwap.

Djed users are subject to operating fees that are paid in ADA. All these fees are converted into $COTI and streamlined into the COTI Treasury to be distributed as rewards to the Treasury’s users.

What to expect next?

Over the course of 2023, we will continue to build out and improve the product.

Version 1.2 will use the Vasil features including a reference script which will increase its scalability.

Djed 1.3 is the extended Djed version that will introduce dynamic fees and prices. In addition, a more progressive delegation program will be supported, resulting in significant liquidity provision.

Part of our future plans for Djed are to add other assets aside ADA as collateral to mint DJED. Our plan is to add other coins, especially wrapped assets, like wrapped BTC (WBTC) and wrapped ETH (WETH) as collateral to mint DJED on the Cardano Network.

This is an exciting time for us at COTI and the entire Cardano ecosystem at large, and we want to thank you all for your continual feedback, engagements and support thus far.

Watch this video to better understand Djed’s mechanism: https://youtu.be/a2zmLcUajUQ

You can also read the Djed whitepaper here: https://eprint.iacr.org/2021/1069.pdf

Djed Testnet is still available here: preprod.djed.xyz

The policy ID of DJED and SHEN can be found here: https://cardanoscan.io/tokenPolicy/8db269c3ec630e06ae29f74bc39edd1f87c819f1056206e879a1cd61