CoinDesk Analysis Team
CoinDesk
The upcoming Djed protocol's stablecoin, djed, and its Shen governance token will list on Cardano-based decentralized exchanges (DEXs) MuesliSwap and MinSwap after their issuance next week, as per tweets from the two DEXs.
As per DeFiLlama, MinSwap is currently the largest Cardano DEX, locking $30 million in tokens while MuesliSwap locks up a relatively smaller $6.5 million worth of liquidity.
The highly anticipated djed stablecoin has been jointly developed by Cardano code maintainer IOG and Coti, a layer 1 blockchain. Djed will be backed by other tokens and requires more than 400% in collateral value to be posted before it is issued to a user.
DEXs rely on smart contracts to match trades between users anonymously and without third parties. These users supply liquidity to trading pools, earning rewards in the form of tokens.
The exact annualized yield offered to liquidity providers of the upcoming Djed tokens was unknown at writing time Friday. However, the tokens are expected to attract liquidity and interest from investors owing to their overcollaterized mechanism.
Shen, the reserve token meant to support djed's stability, would receive extra rewards when holders of Cardano's ADA cryptocurrency stake their coins to mint djed stablecoins, which may fuel liquidity for the upstart ecosystem.
This overcollateralized mechanism would allow djed's value to hold stably during market stress and prevent a repeat of terraUSD, the infamous stablecoin linked to luna, which fell over 99% in May.
Djed is expected to go live on over 40 Cardano-based decentralized finance applications (dapps) on launch. Developers have simultaneously developed DjedPay, a payments application that uses djed, that would allow users to transfer the tokens to merchants and businesses.
Coti and MuesliSwap did not immediately respond to requests for comment at writing time.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.