Djed USD
Over-collateralized algorithmic $USD stablecoin backed by ADA, by IOG + COTI
What is Djed USD?
Djed is Cardano's native over-collateralized algorithmic stablecoin, developed by IOG (Cardano's founding entity) and COTI. Unlike fiat-backed stablecoins, Djed maintains its USD peg through smart contract mechanics and an ADA collateral reserve — no banks, no centralized custody.
Key Features
Over-Collateralized by ADA
Every DJED in circulation is backed by a minimum 4x ADA collateral reserve, maintained autonomously by smart contracts. This buffer absorbs ADA price volatility while preserving the peg.
SHEN Reserve Token
SHEN is the reserve coin that absorbs price fluctuations. SHEN holders earn fees from DJED minting and burning, and benefit when ADA appreciates.
Algorithmic Peg Maintenance
Smart contracts automatically manage minting and burning of DJED based on collateral ratios — no human intervention required to maintain the peg.
IOG Research Backing
Djed is based on formal academic research published by IOG. Its mechanism has been mathematically proven to maintain its peg under defined market conditions.
How to Use Djed USD
- 1
Visit djed.xyz to mint DJED directly by depositing ADA as collateral
- 2
Alternatively, swap for DJED on any major Cardano DEX or via DexHunter
- 3
Use DJED across Cardano DeFi: as collateral on Liqwid, in stableswap pools on Minswap, or simply to hold stable USD value
- 4
To redeem, burn DJED to receive ADA back at the current exchange rate
Frequently Asked Questions
How does Djed maintain its peg?
Djed's smart contracts enforce a collateral ratio between 400% and 800%. If collateral drops below 400%, new DJED cannot be minted. If it rises above 800%, SHEN cannot be minted. This mechanical constraint keeps DJED stable.
What is SHEN?
SHEN is Djed's reserve coin. SHEN holders provide the ADA collateral backing DJED and earn fees in return. They take on ADA price risk but benefit from ADA appreciation.
Is Djed safe during a market crash?
Djed's 400% minimum collateral ratio provides significant protection. However, in an extreme ADA crash, the reserve could theoretically be depleted. The over-collateralization is designed to handle typical market volatility.
Who created Djed?
Djed was developed by IOG (Input Output Global), the research company behind Cardano, in partnership with COTI. It is based on formal academic research into algorithmic stablecoin design.