Reap Rewards For ADA Deposits by Holding Cardano’s Stablecoin Reserve Coin

More Than 1.85M Cardano-backed Djed Stablecoin Minted and 40K Burned in Under Two Days

Rewards for ADA stored in Djed’s smart contract at launch will be given to holders of the reserve currency of Djed, SHEN.

This information was disclosed by COTI, the company behind the Cardano stablecoin Djed, in a yesterday Twitter-shared Medium blog article. The story claims that it is a short-term measure. According to COTI, Djed v1.3 will replace it with a multiple-pool staking mechanism.

Read article: IOG Introduces New Cardano Node Version To Address Brief Outage’s Root Issue

As stated, the solution will assign the ADA deposited in the Djed smart contract to mint SHEN using a specific public staking pool operated by Wave Financial. The pool will use screenshots captured throughout each period to determine awards. At the end of every four epochs, according to COTI, the pool will transfer the prizes to qualifying SHEN holders without further action from the recipients.

As mentioned earlier, SHEN holders can track these rewards through an interface created on Notably, COTI first alluded to adding staking rewards for SHEN holders with the current Djed version in a blog post on January 13.

As for the most recent COTI update, some users have expressed concerns about the selection of the stake pool, noting that Wave already has 3% of all ADA staked.

It’s important to note that COTI provided additional information regarding the Djed protocol in the blog post published yesterday. Users will be able to mint a minimum of $5,000 worth of Djed and burn a minimum of $1,000 worth of the stablecoin, according to COTI, who also emphasized that the protocol will be restricted for large mint and burn transactions, leaving small transactions to exchanges. Users could also mint at least 5,000 SHEN and burn at least 2,500 SHEN.

Notably, mint and burn transactions will attract a 1.5% fee in addition to operational fees of 100 ADA.

As was previously announced, this week will see the long-awaited launch of the overcollateralized algorithmic stablecoin. According to COTI, the only thing remaining to do is complete the chain index synchronization procedure.

Its proponents anticipate a considerable improvement in the Cardano ecosystem for decentralized finance.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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