What is Djed?
Djed is a new kind of digital coin called a "stablecoin" because its value stays stable. But it's not just any stablecoin, it's called an "overcollateralized stablecoin." This means that there is extra collateral, or security, behind the coin to make sure its value doesn't change too much.
Think of it like buying a car. When you buy a car, you put down a certain amount of money as collateral. This is like the extra security behind Djed. And just like how the car has value separate from the money you put down, the collateral behind Djed also has value separate from the stablecoin. The collateral of Djed is ADA, which is completely independent of the Djed protocol, it has its own utility and use case.
Why Djed is different?
Djed is different from other stablecoins in the market. First, it is overcollateralized, with a collateralization ratio of 1:8, meaning that it has 8 times more underlying value backing it, than the total sum of Djed minted. This makes it more secure than algorithmic stablecoins which are usually partially collateralized or undercollateralized.
Second, Djed is fully decentralized, which means that it doesn't rely on any central authority or middlemen, like banks, to work. This eliminates censorship risks and makes it trustless. And because it's built on a decentralized system, the collateral can be verified by anyone on the blockchain.
Third, Djed is community-driven, which means that the community can mint new coins and holders also get a share of the protocols’ equity pool as an incentive for their participation in maintaining the Djed peg ratio.
Finally, Djed is capital efficient, meaning that it doesn't require a lot of collateral to mint new coins, this is due to the $SHEN model which takes care of the over-collateralization, this makes Djed capital efficient and different from other overcollateralized stablecoins.
Why Djed is revolutionary?
The team behind Djed believes that the introduction of Djed will be revolutionary for the stablecoins market. Djed is the next generation overcollateralized stablecoin that represents the answer to the pressing needs of the present-day crypto industry, and it has the potential to become the top stablecoin of the Cardano network. With its over-collateralization ratio, decentralization, community-driven, capital efficiency, and trustlessness, Djed can provide a more secure and transparent alternative to other stablecoins in the market.
Conclusion
Djed is a game-changer in the stablecoin market. Its innovative design and unique features set it apart from other stablecoins, making it a more secure and transparent option for anyone looking to stabilize their investments. The team behind Djed has done an excellent job in addressing the pressing needs of the present-day crypto industry, and we believe that its launch on January 2023 will be a turning point for the stablecoin market.
We are excited to see how Djed will perform in the market and we are hopeful that it will become the go-to stablecoin for the Cardano community and beyond. Djed's decentralization, community-driven approach, and capital efficiency make it a more attractive option for investors and traders. Its over-collateralization ratio and trustlessness features ensure that the value of the coin remains stable, providing a sense of security for holders.
The launch of Djed is a big step towards a more secure and transparent crypto economy. We can't wait to see how it will change the game and revolutionize the stablecoin market. We believe that Djed has the potential to be the top stablecoin in the Cardano network and beyond, and we are excited to be a part of this journey.