Cardano’s overcollateralized algorithmic stablecoin, $DJED, just experienced the most significant event in its young history:
All the mintable supply of $DJED is gone, and the minimum reserve ratio is now below 400% (currently 397%). 🤯
Why is this a big deal? Because no more $DJED can be minted. To make this a little easier to understand, here’s an infographic of how it works:
If DJED was Do ‘Con’ Kwon’s TerraUSD ($UST), the team could pull a U.S. Federal Reserve and print more money out of thin air.
Can’t do that with DJED.
Today might be the first of many days that the efficacy, integrity, and theory behind Cardano’s overcollateralized algorithmic stablecoin can win against $SHEN’s underlying $ADA price pushing the Reserve Ratio below the 400% threshold.
Give today’s Crypto 101 on DJED a read if want to know more about how it works.