As the stablecoin market experiences turbulence, Djed is expanding its offerings to include Ethereum and Binance Smart Chain. Djed, a protocol for creating stablecoins, is making this move in response to market dynamics and increased demand for stablecoins on these two popular blockchain platforms. With this expansion, Djed aims to provide a stablecoin solution that is robust, scalable, and available across multiple networks, offering users more flexibility and options for their stablecoin needs. The move is expected to enhance the ecosystem of Djed and help it stay ahead in the competitive stablecoin market.
Djed Stablecoin to Launch on Ethereum and Binance Smart Chain Amidst Stablecoin Turmoil
Djed stablecoin, currently backed by ADA, is set to branch out into other blockchains. According to COTI CEO Shahaf Bar Geffen, Djed will soon be available on Ethereum, Binance Smart Chain, and other DeFi ecosystems outside of the Cardano ecosystem. The move was planned from the beginning, but recent instability in the stablecoin market accelerated this decision.
The stablecoin sector has experienced significant turbulence in recent weeks, with Circle’s USDC disclosing that it held $3.3 billion with Silicon Valley Bank, which filed for Chapter 11 bankruptcy on March 17. This disclosure resulted in a de-peg of the stablecoin, with fears over its inability to redeem at its $1 face value, causing the price to drop as low as $0.8217 on March 11. The instability spread to other stablecoins and DeFi protocols, with DAI also suffering a de-peg that bottomed at $0.8918, losing 25% of its market cap since March 11.
However, amidst this turmoil, Djed did not lose its peg. This is attributed to its decentralization, over-collateralization, and verifiability – with collateral viewable on-chain. As a result, there has been a high demand for Djed, with record volumes reported on dexes. Non-Cardano protocols have also requested that Djed go multichain, setting off plans to branch out into different DeFi ecosystems at a much faster pace.
Bar Geffen highlighted that going multichain would yield benefits such as more fees, increased value for Shen holders, and better APY for treasury participants. Although backed by ADA, the Shen token provides liquidity in instances of ADA price fluctuation and the possibility of insufficient ADA in the smart contract to pay Djed sellers.
In conclusion, Djed stablecoin’s move to Ethereum, Binance Smart Chain, and other blockchains will give it exposure to bigger DeFi ecosystems, leading to benefits for its users. Bar Geffen expressed confidence that Djed will maintain its peg value and offer a stable and verifiable payment solution in the turbulent stablecoin market.