what's Djed?
Djed is an algorithmic stablecoin protocol built on the Cardano blockchain, designed to maintain a stable value pegged to the US dollar through a two-token system. It consists of the stablecoin DJED and the reserve token SHEN, which together provide over-collateralization and automatic adjustments to supply based on market conditions. The protocol emphasizes decentralization and resilience, avoiding reliance on external fiat reserves or centralized custodians. The core mechanism involves a redemption process where users can exchange DJED for ADA (Cardano's native token) at a fixed rate when the price deviates, incentivizing arbitrage to restore the peg. SHEN acts as a buffer, absorbing excess supply or providing liquidity during volatility. This self-correcting design ensures stability even during extreme market events, as demonstrated in historical stress tests on Cardano. Developed by Input Output Global (IOG), Djed integrates with Cardano's smart contract capabilities via Plutus, enabling trustless operations and community governance through associated DAOs.
Djed hit 15.77% APR on Liqwid Finance (Cardano) with $1.37M TVL.
contract
cardano
Achieved 15.77% APR/APY on Liqwid Finance on Cardano with a TVL of $1.37M in a lending pool (30-day average APY: 13.00%).
Integrated with BitGo for institutional custody support, enabling institutions to access Djed through BitGo's digital asset custody platform.
Djed maintained its peg despite ADA experiencing a 60%+ price drop in what is described as the worst liquidation in crypto history.