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Djed Development Update
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A Closer Look at Djed's Latest Development Efforts
CryptoCounsel
Sep 14, 2023
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Introduction

Djed, the overcollateralized stablecoin, has emerged as a standout stablecoin on Cardano, setting itself apart through innovative mechanisms that ensure stability. It has recently undergone a significant code upgrade. This update is part of Djed's ongoing commitment to improving and optimizing process flows, reducing entry barriers, and lowering operational fees.

A Fresh Approach to Stability

Djed's distinctive approach to maintaining stability differentiates it from other stablecoins, including TerraUSD (UST). While Djed and UST aim to keep their value closely aligned with the Dollar, their methods couldn't be more different.

The Djed Difference

Djed leverages a robust system that involves three distinct tokens: ADA, DJED, and SHEN. This intricate mechanism employs a burning process to uphold stability by maintaining a collateral ratio ranging from 400% to 800% for DJED and SHEN tokens.

Here's how it works:

If the collateral ratio drops below 400%, new DJED minting is prohibited, and SHEN burning is not allowed.
Conversely, if the ratio exceeds 800%, new SHEN minting is prohibited, but SHEN burning can decrease the ratio, restoring stability.

This unique approach ensures that Djed remains resilient, even in the face of challenging market conditions. The protocol's ability to adapt and maintain stability, as demonstrated when the reserve ratio dropped to 346% in July 2023, underscores Djed's commitment to its users.

Recent Developments: Elevating Accessibility and Performance

Djed's dedication to continuous improvement recently culminated in a significant code upgrade intended to enhance its position in the stablecoin arena further.

Chain Index Optimization: Strengthening the Foundation

One of the core components of Djed's infrastructure, the Chain Index, has received a substantial upgrade. The Chain Index is responsible for synchronizing the state of the Djed protocol on the Cardano network into an SQL database. It plays a crucial role in determining prices and quoting transaction costs while considering the current state and pending orders.

With this update, Djed aims to enhance the robustness and scalability of the Chain Index. Most notably, it addresses the issue of invalid exchange rates, reducing errors and improving the protocol's performance. This optimization ensures that Djed continues to function efficiently and reliably.

Pub User Upgrade: Elevating User Experience

In addition to the Chain Index, Djed has also upgraded its Pub User application. Pub User is a valuable tool for generating orders and reflecting the current state of each participating wallet that holds DJED or SHEN tokens. This upgrade brings significant improvements to the application, including increased responsiveness, enhanced performance, and improved scalability.

By enhancing Pub User, Djed aims to provide users a smoother and more seamless experience when interacting with the platform. This improved user interface contributes to the overall usability and accessibility of Djed.

DJED & SHEN Minimums and Operational Fees Reduced: Fostering Participation

Djed's final update in this development cycle is designed to incentivize more users to participate in the protocol. To achieve this goal, Djed has made several noteworthy changes to its operational fees and the minimum amounts required for minting or burning DJED and SHEN tokens:

  • The new minimum minting and burning amount for SHEN is 200.
  • The new minimum minting and burning amount for DJED is 200.
  • The reduced operator fee is 5 ADA.

These adjustments aim to make it more accessible for users to engage with the Djed platform. By lowering the entry barriers, Djed seeks to attract a broader user base, ultimately increasing liquidity within the ecosystem.

Closing Thoughts

Djed's recent development update strengthens its technical foundation while enhancing accessibility for a broader user base. With its unique stability mechanism and unwavering commitment to improvement, Djed emerges as a dependable stablecoin on the Cardano blockchain.

Don't miss out on our full article "Djed - An algorithmic Stablecoin".

Disclaimer: Please be advised that the information or any other material provided herein shall not be construed as legal, tax, investment, financial, or any other form of advice. EMURGO Media (Cardano Spot) does not intend for anything contained herein to be interpreted as a solicitation, recommendation, endorsement, or offer to invest, buy or sell any associated tokens or other crypto assets.

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CryptoCounsel
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