Cardano has been known to roll out top-notch products that solve real world problems. One of the key innovations for 2023 is the launch of a DJED: SHEN algorithmic stablecoin running on the Cardano blockchain.
$DJED’s algorithm is based on a collateral ratio within the range of 400%-800% for $DJED and $SHEN to ensure there’s enough $ADA in the pool.
The Djed stablecoin is an over-collateralized algorithmic stablecoin, built on Cardano and powered by COTI. It is pegged to USD, backed by the base coin ADA, and uses SHEN as its reserve coin.
Shortly after DJED’s launch the crypto markets have experienced high volatility due to some announcements made by the SEC declaring that everything but Bitcoin may be considered a security which included ADA, DJED and SHEN and the DJED : SHEN ecosystem has worked exactly as designed and DJED has not lost it’s peg to the US dollar.