$DJED vs $UST, a thread 🧵⬇️
With the crash of $UST / $LUNA, unsurprisingly, much doubt has been cast on #algorithmic stablecoins. #Cardano is launching its own #stablecoin as most of us know - $DJED, which is already on testnet, but how is it different? 🤔
I’m curious how many other stable coins, if any, are being written on Cardano? What about usdc? It’s on multiple chains. I’m invested in Coti but I would agree that they talk a lot of hype and then delay- dates and the “news” of a major retailer. Still haven’t heard that….
Djed needs to be attacked with massive force as soon as it is released on Cardano main net. It needs to prove it is worthy to exist in this environment. We need to find it's strengths and weaknesses early on so we don't have another Luna event.
Wen Djed? NOW!
We are excited to announce that Djed's public Testnet is now released!
We invite you to test the platform by minting and burning $Djed on djed.xyz
Learn how: cotinetwork.medium.com/djed-public-te…
youtu.be/Dq_1DOrsXGU
$COTI @CardanoStiftung @InputOutputHK
3/5
At this stage, what I expect from @InputOutputHK and @COTInetwork is a (public) postmortem analysis of UST, as a case study to validate or reformulate hypotheses made for Djed. Being fully algorithmic means that, you can't get it wrong.
Djed on May the 4th, was this planned?
Can i call myself a Djediiiii if I test it?
There's been a lot of discussion about $Djed and $UST so we would like to sum up to save your time 👇👇👇
#Cardanocommunty#Cardano#ADA
Excellent analysis of $djed v $UST.
When $djed is on testnet, will it be possible to simulate scenarios like trading on an exchange to test out depegging or no?
youtube.com/watch?v=dfsy0f…
One of the main things to note is that the algorithm is different than UST and unlike UST, $DJED is over-collateralized
After the collapse of $UST I have been looking into other algo stable coin designs and am very impressed by $DJED
It looks to have solved the death spiral problem with algos without resorting to fiat backing.
Let me explain... 🧵 1/8
1/ The mechanism of UST and $Djed is different as UST affects the amount of #LUNA while Djed does not affect the supply of ADA in the market.
Sold COTi. Djed is not a good idea. I think it’s dead now. UST
Algorithmic stablecoin whitepapers
Ethereum Dai - 21pages
makerdao.com/whitepaper/Dai…
Terra UST - 16pages
assets.website-files.com/611153e7af9814…
Tron USDD - 9pages
usdd.io/USDD-en.pdf
Cardano Djed - 87pages
eprint.iacr.org/2021/1069.pdf
Here it’s my thought…
$DJED is another algorithmic-stablecoin on the #CardanoADA blockchain…
Will it have the same ending as $UST?
Why or why not??
2b is the total supply, no more then that COTI is possible to have.
$Djed is different from $UST since it's an overcollaterilised Algorithmic stablecoin.
Details here-
cotinetwork.medium.com/what-gives-dje…
Agreed that a concerted attack on djed the same way Luna and UST were attacked is a risk.
From my understanding, and I may be wrong, using a reserve coin ($shen and sigrsv) instead of the native coin (ada or Erg) for peg algo should mitigate the impact on the whole ecosystem
My only concern is $DJED, the algorithmic stable coin. People are a bit fun shy on these lately. Yes, I know $SHEN is there, but still…..