The introduction of nonsynthetic stablecoins on the Cardano (ADA) network has been highly anticipated, and the wait has come to an end with the launch of Djed, a stablecoin developed in partnership between Coti and IOG. This decentralized stablecoin aims to maintain its value close to $1 through the use of cryptocurrency reserves.

To ensure stability in a volatile cryptocurrency market, Djed has a minimum collateral requirement of 400% of its issued value. This substantial cushion of collateral protects against market fluctuations, avoiding a situation similar to the Terraform Labs stablecoin collapse in 2022 that resulted in billions of dollars being lost from the cryptocurrency market in just a few days. The stability of Djed will be supported by the use of an asset known as SHEN. Get to know SHEN SHEN reinforces the reserve rate of Djed's smart contract, providing added stability to the stablecoin. When purchasing Djed, the smart contract automatically converts the deposited ADA into the stablecoin, turning it into a liability.