Djed StableCoin

Djed launched in early 2023 as Cardano's answer to the algorithmic-stablecoin debate then raging after Terra's collapse. Built by COTI with input from Cardano's research arm, it holds its dollar peg not through supply games but through heavy over-collateralization: the reserve, denominated in the ADA cryptocurrency, is meant to stay between four and eight times the value of DJED in circulation. A companion token, SHEN, absorbs volatility by soaking up excess collateral and earning fees. Minting and redemption happen through the protocol's smart contracts against that ADA reserve, with onchain proof of reserves visible to anyone and no company standing between holder and collateral. If the ratio falls too far, the contract simply blocks new minting until it recovers. The tradeoff is capital efficiency: keeping several dollars of ADA behind every one it issues caps how large Djed can practically grow.