What is the djed token? Simplest explanation
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Hey Cardacians, have you heard of Djed?
It’s the first stablecoin on Cardano, and it’s not your typical fiat-backed token. Djed is an algorithmic stablecoin that adjusts its supply according to market demand, keeping its price close to $1 USD. But that’s not all. Djed also has some unique features that make it stand out from other stablecoins:
Djed can be pegged to any currency, as long as there is an oracle providing the price index. So you can have Djed-EUR, Djed-JPY, Djed-GBP, etc.
Djed has a reserve of ADA that acts as collateral for the stablecoin. The reserve ratio determines how much ADA is backing each Djed token. The higher the ratio, the more secure and stable the system is.
Djed has a governance token called DUSD that allows holders to vote on protocol parameters such as target price, reserve ratio, interest rate, etc2. DUSD holders also receive rewards from fees generated by the system.
Djed is named after an ancient Egyptian symbol that represented stability and prosperit2. It also symbolized Osiris, the god of rebirth and renewal. Pretty cool, huh?
I think Djed is a game-changer for stablecoins and Cardano.
What do you think?
Let me know in the comments!