DEXs, MinSwap and MuesliSwap, currently have $30 million and $6.5 million worth of liquidity locked in them respectively
On Thursday, COTI Network, the issuer of the Cardano-backed stablecoin Djed announced its upcoming listing on major DEXs MinSwap and Muesliswap. COTI also added that Shen, its reserve coin, would be on that listing.
MuesliSwap to List DJED and SHEN
On Thursday afternoon, COTI retweeted the MuesliSwap announcement that revealed the exchange’s plan to list $Djed and $Shen in the coming week. This places the listing immediately after the algorithmic stablecoin’s launch, although COTI is yet to communicate the exact date of the launch.
Djed is Cardano’s officially validated algorithmic token backed by ADA and SHEN, and the first stablecoin on the Cardano network. It was created by Cardano’s developer, IOG but issued by layer-1 blockchain, COTI group. Since the announcement of the project, Djed has sparked a wave of media anticipation, especially in the Cardano community. Ordinarily, this should be surprising considering the last collapse of the algorithmic stablecoin, TerraUSD in May 2022. However, IOG and COTI have been vocally intent on avoiding a similar fate. According to COTI, Djed is overcollateralized. In fact, it requires a token-backing of over 400% in collateral before issuance to any user.
Plans to Attract Liquidity Ongoing
The stablecoin protocol also has a system for rewarding holders of Shen, Djed’s reserve token. Whenever Cardano holders stake ADA to mint Djed, Shen holders receive rewards that could improve the ecosystem’s liquidity.
According to a developer at MuesliSwap, the DEX plans to launch concentrated liquidity pools alongside Djed in the coming week. Apparently, MuesliSwap aims to attract liquidity by providing farming APR of up to 25% on ADA/$DJED and ADA/$SHEN pairs.
Additionally, COTI expects Djed to be available on more than 40 Cardano-based decentralized finance applications (Dapps) at launch. At the same time, programmers have created DjedPay, a Djed-based payment system that enables users to transfer tokens to businesses.
In conclusion, ADA holders and enthusiasts hope that the overcollateralized mechanism of the Djed tokens could potentially drive liquidity and investor interest. Combined with the yearly yield rewards provided by the DEXs, it might ultimately boost Cardano’s $72 million decentralized finance ecosystem.