Thread by @whoistracer

I’ve spent a bit of time lately trying to wrap my head around $Shen and it’s relation to $Djed and $Ada.

I’m condensing a few posts together in this thread to try and explain some of the points I’ve found significant.

🪡 🧵

$Djed = $1 $Ada ♾️

Over Collateralized by 4-800%

Collateral externally sourced 👉 $Ada

Capital Efficiency achieved by it's relation to $Shen - Reserve Coin

Fiat Stables $USDT = Centralized
$Djed = Decentralized

$Ada 👉 $Djed 👉 $Shen 👉 $Coti

Powered by @COTInetwork

🧵 Benefits of holding $Shen 🧵

- Fees received for ALL burn and mint go to $Shen holders: models forecasting +/- 10% APR depending on demand, inflow/outflow rate, paid in $Ada.

- 3-5% staking rewards

- Farming rewards for adding liquidity to DEX’s +\ - 15%

$Coti #Cardano

🧵 Benefits of holding $Shen 🧵

$Ada 👉 $Djed 👉 $Shen 👉 $Ada

$Shen ➕ Staking ➕ Farming 🟰 +/- 30% APY

In addition to a potential combined 30% APY.

- $Shen holders also capture positive price action on $Ada when $Djed is burned

$Coti #Cardano #staycoti @COTInetwork

- Tracer mints $Djed @ $0.25 $Ada
- Tracer sends 4 $Ada = $1.00
- Tracer receives 1 $Djed

📅 - 12 Months later - 📆
$Ada price is $2.50

-Tracer misses the hype

- Tracer burns 1 $Djed
- Tracer receives 0.4 $Ada = $1.00

3.6 $Ada worth $9.00 💵 👉 $Shen holders

$coti

⁉️What are the fees to Mint and Burn⁉️

- Mint $Shen 0.2%
- Burn $Shen 0.5%

- Mint $Djed 1.5%
- Burn $Djed 1.5%

⁉️Where do the fees go⁉️

- All $Shen fees 👉 $Shen Holders

- 2/3 of $Djed fees (1%) 👉 $Shen Holders
- 1/3 of $Djed Fees (0.5%) 👉 #cotitreasury

$Coti #Cardano

$Djed and $Shen are scheduled to release end of month.

January 2023

djed.xyz

Many people asking...

Will $Shen and $Djed unlock at the same time?

Here's my thoughts on that.

By now we know that you need a collateral ratio of 400% $Shen for the contract to allow $Djed to be minted...but how will this work at Genesis?

@CotiPodcast @COTInetwork $coti

Likely djed.xyz will go live at the end of January as scheduled.

Immediately the $Shen minting process will be unlocked and users will connect their #cardano wallets and begin locking their $ada in the contract to receive $Shen.

@COTInetwork @CotiPodcast $coti

To unlock the minting process for $Djed I suspect there will be a minimum achieved $Shen TVL threshold. At this point the floating collateral ratio of 400% to 800% will now be in effect.

This theory is purely speculation and I am eager to hear more about how this will unfold.

⚠️ this is an oversimplification of what happens to the surplus $Ada after positive price action ⚠️