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Jan 25, 2023 16 tweets 6 min read Read on X
A new stablecoin launches on Cardano next week!

Let's talk about $DJED!
🪙What is a stablecoin?
🪙What is DJED?
🪙How do I get DJED?
🪙What is SHEN?
🪙What rewards can be earned?
🪙and more...

🧵a thread #COTI
🪙What is a stablecoin?
A stablecoin is a type of cryptocurrency that is designed to maintain a stable value, usually by being pegged to the value of other assets such as fiat currencies, precious metals, stocks, or other cryptocurrencies
Stablecoins are divided into three different types:

🔵Overcollateralized

🔵Algorithmic

🔵Fiat Backed
Overcollateralized stablecoins are backed by a greater value of crypto assets than the stablecoins issued, ensuring a reserve.

Examples include DAI from @MakerDAO
Algorithmic stablecoins use algorithms to maintain value & are partially collateralized, unlike overcollateralized stablecoins.

Examples include UST from Terra
Fiat backed stablecoins are backed 1:1 with a reserve of fiat currency. These reserves are held by a custodian.

Examples include USDT from @Tether_to
🪙What is DJED?

DJED is an Overcollateralized stablecoin. It is backed by the cryptocurrency ADA. Users can mint DJED by sending ADA to a smart contract, with the amount of ADA required to mint one DJED determined by the current value of ADA. Image
If a user wants to sell DJED, they can send it back to the contract, which burns DJED and sends back the equivalent value in ADA.

Fluctuations in the price of ADA can at times mean that there is not enough ADA to cover redemptions

😱

Don't worry, this is where SHEN comes in! Image
SHEN is the reserve coin that is not pegged to any specific asset and is used to provide extra reserves.

By minting SHEN, holders provide a service of stability to DJED users and smart contracts manage the reserve ratio to ensure stability and incentivize SHEN holders. Image
This is done by keeping a minimum reserve of 400% and a maximum reserve of 800% Image
🪙What rewards can be earned?

SHEN holders are rewarded with a share of the fees collected from DJED and SHEN transactions

When DJED is MINTED/BURNED a 2% fee (1.5% mint/burn fee + .5% operating fee) is taken

1.5% goes to an ADA pool along with ADA that was exchanged for DJED Image
When SHEN is MINTED a .2% fee is taken.
When SHEN is burned a .5% fee is taken.

These fees go to the ADA pool.

❌No operating fees are taken for SHEN burning and minting Image
SHEN holders will also earn ADA PoS Rewards

ADA that is deposited to the DJED smart contract will generate extra rewards for SHEN holders, a snapshot mechanism and UI that will be added to, where SHEN holders will be able to track these extra rewards on the website
The .5% Operational fee goes to a pool that will be used to buy COTI at market price at an unspecified time to prevent price manipulation.

This COTI goes back to the COTI treasury. Image
🪙What about DJED rewards?

DJED & SHEN Liquidity pools will be available on three major DEXs next week!

Users will be able to supply liquidity and:
1⃣ Earn on trading fees

2⃣Earn LP Farming rewards

Lending and borrowing on platforms like @AadaFinance should be available also
In another thread we will cover the risks of $DJED stablecoin ⚠️⚠️⚠️⚠️⚠️

Be sure to follow @SubcriticalTV to stay up to date 🤝

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More from @SubcriticalTV

Feb 1, 2023
Liqwid Finance is launching soon 🚀

Let's discuss:
💧What is Liqwid?
💧What is qADA?
💧What is LQ?
💧How to maximize gains (6x yield)?
💧What are the risks?
💧Aquafarmer NFT
💧and more...

🧵a MEGA thread #Cardano #DeFi
💧What is Liqwid?
Liqwid is a lending and borrowing protocol on Cardano.

Simliar to AAVE it is non-custodial and decentralized.

Lenders earn interest, while borrowers take out perpetual loans by over-collateralization

Loan Interest Rates are determined by market demand & usage
💧What is qADA?
qTokens are Cardano's native interest-bearing assets, similar to a savings account

As interest accrues, the qToken exchange rate increases.

qTokens can be redeemed for underlying assets by burning, assuming sufficient liquidity
Read 17 tweets
Apr 1, 2022
As we approach the June HF the full power of DeFi on Cardano will begin to be unleashed

Let's take a look at the pillars of DeFi and what projects will lay the ground work and allow you to earn passive income

🧵1/n
Exchanges
Decentralized Exchanges (DEXs) allow users to exchange tokens without giving up custody of their assets

They can be Automated Market Makers or Orderbook

Users are rewarded with fees for providing liquidity and also yield farming rewards as an extra incentive
2/n
DEXs available on Cardano
@MuesliSwapTeam @SundaeSwap @MinswapDEX

Upcoming DEXs
@CardanoMaladex Programable swaps & no impermanent loss (IL)

@wingriderscom Staking of ADA while providing liquidity

@GeniusyieldO Concentrated liquidity & AI powered yield aggregation
3/n
Read 16 tweets

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