DJED takes off! The Cardano-powered stablecoin soars with 27 million ADA in reserves

Djed, built on the foundations of the smart contract platform Cardano (ADA), has amassed millions of ADA in its treasure trove.

The new stablecoin boasts a 591% reserve ratio, strengthened by 27 million ADA tokens.

On the official Djed website, details into the workings of this stablecoin reveal its plan for staying steady through the power of over-collateralization.

What is over-collateralization?

Djed is expected to stay strong and stable, relying on its over-collateralization. Put simply, this means that there is no need to trust in a governing protocol like with algorithmic stablecoins. The stability is built right in.

“Djed is a stablecoin with a stability assurance plan. With collateral that’s 400–800% more than required, it’s fortified and safeguarded by its reserve coin SHEN. The protocol is designed to weather any storm and stay steady.”

Made by payments giant COTI Network and supported by Cardano’s own asset, Djed officially hit the scene earlier this week on the Cardano blockchain.

DJED pre-launch upgrades

Before its debut, COTI gave Djed a major makeover, including shifting it to a multi-chain network for private payments and cutting deposit fees by half.

Moreover, COTI believes these updates will boost the use of digital assets as a payment option for goods and services.

“This launch marks a giant leap for the crypto world, as well as COTI. It propels the growth of crypto payments in the business world. Furthermore, with this [upgrade], even more enterprises that have yet to embrace the power of crypto payments can now join the revolution.” COTI representative.

At the moment, ADA is trading at $0.4049, up 6.05% in the last 24 hours.