- Djed didn’t lose its USD peg in the course of the latest turmoil within the stablecoin market,
- Djed’s TVL noticed positive aspects of 17% because the USDC depegging saga,
Cardano’s [ADA] stablecoin Djed, which launched earlier this 12 months, could quickly increase 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), mentioned that the enlargement was at all times a part of the venture scope however they are going to work in direction of it with higher focus.
The CEO added that they acquired a number of requests from non-Cardano DeFi protocols to have the stablecoin launched on their blockchains.
“Djed shall be on different chains as properly. Clearly on Ethereum and Binance Sensible 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
Probability to thrive?
The latest developments within the stablecoin ecosystem put the main target 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 time limit, it traded at a premium towards the USD, per date from CoinMarketCap. During times of excessive demand, stablecoins are likely to go above their pegged worth.
Supply: CoinMarketCap
Then again, 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 occasions its worth in ADA. There have been greater than 33 million ADA cash in reserves.
The over-collateralization mechanism was meant to offer safety to Djed towards fluctuating market circumstances, just like the one which caused 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 immediately?
Djed’s contribution to ADA
Djed’s whole worth locked (TVL) noticed positive aspects of 17% because the USDC depegging saga, knowledge from DeFiLlama revealed. On the time of writing, it accounted for 8% of the whole TVL on the Cardano blockchain.
Supply: DeFiLlama
At press time, ADA traded at $0.3449, a marginal enhance of 0.15% from the day past. Bullish sentiments for the coin have been again because the variety of lengthy positions vis-à-vis the quick positions elevated.
Supply: Coinglass