The Cardano-powered stablecoin’s reserve token can no longer be minted
COTI CTO Shahaf Bar-Geffen announced today that the minting of the Shen (SHEN) coin has come to an end as the platform has reached 800% over collateral for the Djed (DJED) stablecoin.
DJED is a decentralized, community-driven stablecoin that utilizes exogenous collateral in the form of ADA to maintain stability.
The stability of DJED is maintained through its 400-800% overcollateralization, eliminating the need for a governance token as seen in algorithmic stablecoins.
SHEN acts as an incentive to keep the system overcollateralized by encouraging users to bring in ADA to the platform.
This helps maintain a healthy reserve ratio and ensures the stability of the contract.
Now that the minting of SHEN has ended, those who hold it will reap the benefits of fees, delegation rewards, LP, and farming rewards.
Bar-Geffen explained that it is now possible to obtain SHEN only through decentralized exchanges (DEXs).
As reported by U.Today, the much-hyped stablecoin, which uses ADA as its base coin, made its debut on the mainnet earlier today.
It is now available on MinSwap, Wingriders, and MuesliSwap, with other listings expected in the Cardano ecosystem. Bitrue has become the first exchange to list DJED and SHEN.
Over the course of 2023, the product will continue to be improved, with plans to add other assets as collateral to mint DJED, including wrapped BTC and ETH.