More Than 1.85M Cardano-backed Djed Stablecoin Minted and 40K Burned in Under Two Days

More Than 1.85M Cardano-backed Djed Stablecoin Minted and 40K Burned in Under Two Days

Cardano’s Djed stablecoin’s official issuer, COTI Network, has provided information about DJED’s development. It was reported by COTI that ADA-backed stablecoin has sparked a significant amount of interest and participation since it launched on the mainnet .

In a recent blog post, COTI stated that while 40K DJED units were burnt, a staggering 1.85M DJED were minted. In a related development, COTI revealed that 73K of DJED’s reserve token, SHEN, were burned out of the 21M units that were minted.

It is significant that the developers adopted the minting and burning of DJED and SHEN as a mechanism to maintain a 400%–800% reserve ratio. The platform’s reserve ratio hit 800% during the first three hours of DJED’s launch, which forced COTI to cease the minting of SHEN. Holders of SHEN have the opportunity to benefit from delegation rewards, fees, and farming rewards despite SHEN’s minting being halted.

As of the publishing of this article, the reserve ratio had fallen to 635%, allowing other users to mint SHEN. It is important to note that SHEN encourages users to back Djed with their ADA tokens, maintaining the system’s overcollateralization.

Read more: Less Than a Day After Launch, Cardano Djed Acquires 27M+ ADA as Support

DJED Attracts Over 29M ADA As Reserve Backing

DJED attracted 28M ADA tokens as backing for the stablecoin less than two days after launch, COTI stated. At the time of writing, there were about 29.36 million ADA advocates of DJED. With a reserve ratio of 635%, the stablecoin is now backed by more than six times its value in ADA for each DJED.
The ADA locked for issuing DJED on the platform is worth $11.79M at the current exchange rate. According to data, the circulating supply of DJED is currently 1,856,873.7877 (1.85M), whereas the circulating supply of SHEN is 22,502,250.6463 (22.5M).

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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