Most people in the cryptocurrency industry are aware with stablecoins like USDC and USDT, but DJED is still a relatively new initiative. For instance, Circle issues USDC, a centralized stablecoin that is tied to the U.S. dollar.
It is completely audited and supported by cash in U.S. Dollars and U.S. Treasuries held by banking institutions. Cryptocurrency and decentralized finance (DeFi) might be difficult to enter and exit, but stablecoins make it simple.
Djed’s creator, COTI, announced in a post on September 4 that a new version of the currency has been published. The update, which included changes to the Djed protocol’s Chain Index and Pub User, was announced in a blog post. We have also lowered the operator fees and required minting quantities for $DJED and $SHEN.
Djed’s state on Cardano is synchronized with a SQL database to improve efficiency, stability, and scalability, and to decrease mistakes in exchange rate computations.
The Pub User app has been upgraded with better responsiveness, speed, and scalability, making it easier to place orders and accurately showing the status of wallets containing DJED/SHEN.
SHEN and DJED have had their minimum minting and burning quantities reduced to 200 units to encourage wider adoption. Additionally, developer costs have been lowered to 5 ADA, making it easier for new users to join. In turn, the influx of new players will boost market liquidity.
Another stablecoin, TerraUSD (UST), has become notorious in recent months. Stablecoins are digital currencies whose value is pegged to the U.S. dollar and which are automatically adjusted in value via the use of digital contracts.
When traders abandoned the UST peg, the balancing mechanism collapsed. While Terraform Labs and others attempted to stabilize UST by purchasing $2 billion in UST, the token’s continued decline drained cash and led to hyperinflation in LUNA, the token’s sister currency. The method of maintaining stability is what sets Djed apart from UST.