The total value of assets locked (TVL) on Cardano-based overcollateralized stablecoin Djed crossed $10 million during the first 24 hours of its launch, according to DeFillama data.
Available data on Djed’s website shows that the stablecoin has a circulating supply of 1.7 million, while its reserve token, SHEN’s supply, is at 20.8 million.
Coti CEO Shahaf Bar-Geffen tweeted that Djed’s reserve ratio peaked at 800% some hours after its launch — the percentage has dropped to 596% as of press time.
When the reserve ratio drops below 400%, users can only burn Djed and mint Shen, while the events are vice versa when the balance tops 800%. This mechanism is designed to prevent another Terra-like collapse under challenging market conditions.
Shen holders are incentivized to stake their coins to mint Djed as they can earn extra rewards.
The new stablecoin had generated significant anticipation from the Cardano community after being under development for over a year.
Cardano projects integrate Djed
Several decentralized exchanges (DEX) on Cardano, like Wingriders, MuesliSwap, and Minswap, were among the earliest platforms to list the stablecoin.
Besides that, Cardano projects like Fluid have integrated the stablecoin as a liquidity option against loans. Fluid would allow its users to borrow Djed using their NFTs as collateral.
Centralized exchange Bitrue would also list DJED and its reserve asset SHEN. Trading is expected to begin on the platform on Feb. 1.
ADA is up 4%
Cardano’s ADA is up 4% over the last 24 hours to $0.38 as of press time, according to CryptoSlate data. The layer1 (L1) blockchain network token has risen by over 50% in the last 30 days.
Meanwhile, Cardano’s DeFi activity has also benefited from Djed’s launch. The total value of assets locked within the ecosystem rose by 22% to $91.4 million in the last 24 hours.