Djed stable coin

Cardano's native overcollateralized stablecoin, developed by IOG and powered by COTI.

Djed is a stablecoin project built on the Cardano blockchain, and it is designed to offer several advantages over traditional stablecoins, including:

1. Decentralized and trustless: Djed is designed to be fully decentralized and trustless, meaning that users do not need to rely on any central authority or intermediary to hold or manage their funds.

2. Highly collateralized: Djed is overcollateralized, with collateral levels set at 150%, providing a high level of security and stability.

3. Low volatility: Djed is pegged to the US dollar, providing a stable value and minimizing volatility.

4. Cost-effective: Transactions on the Cardano blockchain are generally much cheaper than on other blockchain platforms, making Djed a more cost-effective option for users.

5. Interoperable: As a Cardano-based stablecoin, Djed can be seamlessly integrated with other projects and applications on the Cardano blockchain, offering greater interoperability and flexibility for users.

It’s worth noting that the information above may be outdated, as the Djed project and its features may have evolved since my knowledge cutoff date.

When we say that Djed is overcollateralized, it means that the value of the assets held as collateral for Djed stablecoins is greater than the total value of Djed stablecoins in circulation. In the case of Djed stablecoin, the collateral ratio is set at 150%, which means that for every $1 worth of Djed stablecoins in circulation, there is at least $1.50 worth of collateral held in reserve.

Overcollateralization is an important feature of some stablecoin systems because it helps to ensure that the stablecoin remains stable and maintains its peg to the target asset, even in periods of high volatility or market stress. If the value of the underlying collateral falls below a certain threshold, the system may automatically liquidate some of the collateral to maintain the stability of the stablecoin.

In the case of Djed, the overcollateralization ratio of 150% is designed to provide a high level of security and stability, minimizing the risk of instability or insolvency of the stablecoin.