COTI shares exciting details about DJED’s progress.
COTI Network, the official issuer of Cardano’s Djed stablecoin, has shared details about the progress of DJED. According to COTI, the ADA-backed stablecoin has received massive response and participation from cryptocurrency community members since it went live on mainnet.
COTI noted in a recent blog post that a whopping 1.85M DJED were minted while 40K units of the stablecoin were burned. In a similar development, COTI disclosed that 21M units of DJED’s reserve token, SHEN, were minted while 73K of the token were burned.
It is noteworthy that the minting and burning of DJED and SHEN is a mechanism adopted by the developers to maintain a 400% – 800% reserve ratio. COTI disclosed that in the first three hours of DJED’s launch, the platform reached a reserve ratio of 800%, a move that halted the minting of SHEN. With SHEN’s minting halted, people who held the token enjoyed the benefits of delegation rewards, fees, and farming rewards.
Meanwhile, at the time of writing, the reserve ratio had plunged to 635%, giving other users room to mint SHEN. It bears mentioning that SHEN is used as an incentive to keep the system overcollateralized by encouraging users to provide backing for Djed using their ADA tokens.
DJED Attracts Over 29M ADA As Reserve Backing
Less than two days after launch, DJED attracted 28M ADA tokens as backing for the stablecoin, COTI noted. At the time of writing, the number of ADA backing DJED has surged to over 29.36M. The stablecoin currently has a reserve ratio of 635%, which implies that each DJED is backed by more than six times its value in ADA.
At the current exchange rate, the ADA locked for issuing DJED on the platform is worth $11.79M. DJED currently has a circulating supply of 1,856,873.7877 (1.85M), while SHEN’s circulating supply sits at 22,502,250.6463 (22.5 million), data shows.