Djed
Crypto Overview
Overview
Djed is an algorithmic stablecoin protocol deployed on the Cardano blockchain. It aims to maintain a stable value of 1 USD through a complex algorithmic mechanism and over-collateralization using ADA as backing.
Purpose and Utility
The primary purpose of Djed is to serve as a stable medium of exchange within the Cardano ecosystem. It uses a mathematical approach to maintain price stability and is backed by excess reserves through its reserve coin SHEN.
Business Model Analysis
The protocol operates through smart contracts that manage collateral ratios and mint/burn mechanisms. The system is transparent, with all operations visible on-chain. The protocol doesn't involve interest-bearing mechanisms or lending, focusing solely on maintaining price stability through algorithmic means.
Real-World Adoption
Djed has seen adoption within the Cardano ecosystem, primarily being used for trading and as a stable store of value. Several Cardano-based DeFi protocols have integrated Djed as their primary stablecoin.
Development Activity
The project is actively maintained by COTI Network, with regular updates and improvements to the protocol. The development team maintains transparency through public GitHub repositories and regular community updates.
Token Distribution
The token distribution model is based on market dynamics rather than pre-allocation to founders or early investors. New DJED tokens are minted when users deposit ADA collateral, maintaining a transparent and market-driven supply.
Crypto Impact
To assign a comfort level investing in Djed from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Djed.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.