Is Djed backed by ADA directly or only by Shen?

Question

Cardano Official

Big K

Is Djed backed by ADA directly or only by Shen?

Why would Shen go up in value if ADA goes back up in value after a crash?

#ada #blockchain #cryptocurrency #english

0

01.06.2022

12 ответов

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XZact Hypothetical Leptoquark

pretty sure it's just backed by shen. If djed fails, the initial shen "Accredited investors" get reked (but I don't think signifcant amounts of ADA would get dumped on the market destroying the value of ADA for those not involved with Djed or shen)

0

01.06.2022

Pal Dorogi

HeptaSean
DJED is backed by ADA and only by ADA. SHEN are on...

I am just curious how this overcollateralisation can be achieved for very high amount of Djed. I am not really afraid of depegging, and even when it depegs, than that means there is some much bigger issue.

0

01.06.2022

Gean Brinker | BRADA POOL

Here is a nice place to learn about it https://cotinetwork.medium.com/djed-frequently-asked-questions-f636735be76

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01.06.2022

HeptaSean

XZact Hypothetical Leptoquark
pretty sure it's just backed by shen. If djed fail...

Depends a little bit on your definition of “backed by”, but the reserve of Djed only contains ADA, you buy DJED only with ADA and get ADA back if you sell them. Since, the DJED contract can only use the fixed amount of ADA in existence and not mint new ones, a LUNA situation cannot occur.

0

01.06.2022

Big K Автор вопроса

Pal Dorogi
I am just curious how this overcollateralisation c...

I think it won't be a very high amount by design. It would be only a fraction of ADA marketcap

0

01.06.2022

HeptaSean

Pal Dorogi
I am just curious how this overcollateralisation c...

That will be interesting. A really high amount of DJED is only possible if ADA goes up enough, could even drive such a price increase.

0

01.06.2022

Big K Автор вопроса

Pal Dorogi
I am just curious how this overcollateralisation c...

That isn't a "stablecoin" in my opinion if it can depeg by design

0

01.06.2022

Pal Dorogi

Big K
I think it won't be a very high amount by design. ...

I meant, If Djed is getting very popular you need a lot of SHEN to achieve that.

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01.06.2022

Gean Brinker | BRADA POOL

Big K
That isn't a "stablecoin" in my opinion if it can ...

You can have centralised or algo stablecoins, you pick your preferences.

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01.06.2022

Pal Dorogi

Big K
That isn't a "stablecoin" in my opinion if it can ...

Stable coins should have some assumptions and proper definition even for FIAT backed ones. You have some definitions which can be differ from some others.

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01.06.2022

HeptaSean

XZact Hypothetical Leptoquark
pretty sure it's just backed by shen. If djed fail...

Also: It seems that the thing with the “accredited investors” was only in a very early announcement. In everything that COTI publishes now, everyone can buy/mint SHEN. How it should be.

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01.06.2022

HeptaSean · Accepted Answer

HeptaSean

DJED is backed by ADA and only by ADA. SHEN are only the coin given to people who put additional ADA in the reserve to reach the overcollateralisation.

0

01.06.2022

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Is Djed backed by ADA directly or only by Shen?

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