Cryptocurrency

Amid stablecoin turbulence, Djed to expand to Ethereum, Binance Smart Chain

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CoinDesk Consensus

The Djed stablecoin will soon be available on Ethereum, Binance Smart Chain (BSC) and more.

CEO of COTI Shahaf Bar Geffen COTI said it had always planned for Djed to branch out from Cardano to other blockchains, but the recent turmoil in stablecoins has accelerated that move.

Stablecoin turbulence

The last few weeks have seen a lot of turmoil in the stablecoin sector. The issue began with the revelation that Circle’s USDC held about $3.3 billion in Silicon Valley banks. March 17th.

Unpegged due to concerns about not being redeemable at face value of $1. When the fear peaked, the stablecoin fell to $0.8217 on March 11th.

Instability has spread to other stablecoins and DeFi protocols.For example, DAI is approximately 34% We also received an unpegging bottoming out at $0.8918 on USDC collateral. We have also re-set the peg prices.

Since March 11th, stablecoins have lost 25% of their market cap, dropping to a 17-month low of $35.3 billion.

Djed is migrating to Ethereum, Binance Smart Chain and more

Bar Geffen said Djed has not lost its peg amidst the stablecoin turmoil. He attributes the token’s stability to being decentralized, over-collateralized and verifiable – because the collateral can be seen on-chain.

“This is why the trust remains, and this is why Jed didn’t lose his peg when much larger stablecoins lost their pegs.”

This result puts demand on Djed, with Bar Geffen reporting a record amount of dex. He also mentioned that protocols other than Cardano required Djed to multichain.

“We have also received requests from other DeFi ecosystems besides the Cardano ecosystem, such as Djed on Ethereum and Djed on Binance Smart Chain.”

COTI’s CEO said the move to multi-chain is always in the plan.However, per request, the multi-chain plan “probably[be] exercise[d] much faster. “

Bar Geffen pitched the idea, saying that spreading Djed to other larger DeFi ecosystems would benefit from more fees, value for Shen holders, and improved APY for financial participants. .

ADA supports Djed, but the Shen token is a “failure token” that provides liquidity should the price of ADA fluctuate or the smart contract ADA paid to Djed sellers may be insufficient. Also used as a safe.

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