Cardano DEXs Set to Start Supporting Stablecoin Liquidity Pools in February
The Cardano community is closer to Djed’s stablecoin issuance ending weeks of hype. The overcollateralized stablecoin is listing on the Cardano decentralized exchanges, similar to the Shen governance token. The Djed protocol would enrich the Cardano-based DEXs – MinSwap and MuesliSwap upon its scheduled issuance next week.
An in-depth assessment by DeFi revealed that MinSwap is the leading Cardano DEX with over $30 million tokens locked. The scrutiny indicated that MuesliSwap was locking smaller tokens worth $6.5 million. Listing the hyped Djed stablecoin on the two DEXs would make it accessible to the Cardano community.
Prioritizing Collateral Value before Stablecoin Issuance
Djed stablecoin is founded using joint input of Cardano code developers Coti and IOG applying layer 1 blockchain. The firm indicated that Djed would receive backing by additional tokens with a collateral value exceeding 400%. The collateral value will be posted before the issuance of stablecoin to users.
DEXs utilize smart contracts that match the trades and anonymous users while concealing transactions from third parties. The users involved devote themselves to ensuring liquidity to the trading pools. The users, in turn, earn rewards via tokens. The update was noncommittal to revealing the annualized yield accessible to the liquidity providers involving the Djeds tokens is unknown. Nevertheless, the tokens would attract liquidity and investors’ interest relative to the overcollateralized nature.
Driving Stability in Djed Stablecoin
Djed stablecoin is meant to derive stability from the Shen reserve token. The token is scheduled to mint additional rewards whenever the Cardano’s ADA holders stake the cryptos when minting Djed stablecoins. By doing so, the holders drive liquidity to stimulate the ecosystem.
The over-collateralization is set to stabilize Djed’s value, thereby navigating the market stress. Its accomplishment is projected to avert the recurrence of terraUSD, where the Luna-linked stablecoin value plummeted by 99% in May 2022.
The formulated plan indicates Djed is going live on 40 decentralized finance applications (dapps) established in the Cardano ecosystem. In addition, the developers confirmed simultaneously creating DjedPay as a payment platform allowing the users to execute transfers to recipients.
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