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Cardano-Based DJED Stablecoin Now Available for Lending and Borrowing: Details

Fri, 03/03/2023 - 12:07
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Arman Shirinyan
Cardano's go-to stablecoin available for lending and borrowing from now on
Cardano-Based DJED Stablecoin Now Available for Lending and Borrowing: Details
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Liqwid, a decentralized finance (DeFi) protocol, has announced the successful launch of the DJED market, a stablecoin built upon Cardano's blockchain. The new stablecoin uses an algorithmic design that employs smart contracts to ensure price stabilization, and it is expected to be useful for DeFi operations.

Lending and borrowing with DJED benefits the stablecoin and Cardano in several ways. First, it creates liquidity for the stablecoin, which is essential for its long-term success. With more liquidity, DJED can be easily exchanged for other cryptocurrencies or fiat currencies, and it can be used for a wide range of decentralized finance (DeFi) applications.

Cardano: Djed Stablecoin Now 4th Largest Project on Network, What’s Next

Second, lending and borrowing with DJED helps to stabilize the price of the coin. When demand for DJED increases, more stablecoins are minted and sold, which helps to keep the price stable. When demand decreases, the opposite happens, with stablecoins being burned to keep the price from falling too low.

Third, lending and borrowing with DJED can provide an additional revenue stream for Cardano users. By lending out their DJED, users can earn interest on their holdings, while borrowers can access capital without having to sell their assets. This creates a win-win situation for both parties and helps to further promote the adoption of DJED and Cardano.

The main difference between DJED and other stablecoins lies in its algorithmic design and its intended use within the Cardano network. Unlike other stablecoins that rely on centralized entities to maintain price stability, DJED uses smart contracts to automatically adjust its supply and demand to keep its value pegged to the U.S. dollar. This makes it more decentralized and less vulnerable to manipulation by centralized parties.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.