💡
COTI FAQ
  • 💡COTI FAQ
  • 🎁135000 COTI GIVEAWAY
  • NFT Projects
  • Giveaway Details
  • Participating NFTs
  • Prizes
  • 🏢COTI
    • Introduction
    • The COTI foundation
    • COTI V2
      • Introduction
      • COTI V2
      • Use Cases
      • Garbling Protocol
      • Roadmap
      • Information for Developers
    • Programs
      • Ambassadors Program
      • Builders Program
      • Creators Program
    • Contact and Channels
      • Official Contact
      • Unofficial Channels and Bots
  • 🔵COTI coin
    • COTI Tokenomics
    • Exchanges
    • Bridge and ERC20 COTI
      • ERC20 COTI
      • Bridge: V1 -> V2
      • Bridge: Native V2 <--> ERC20
  • 👛Treasury
    • Treasury: General Information
    • Treasury deposits
      • Deposit COTI
      • Withdraw COTI
      • Deposit gCOTI
      • Withdraw gCOTI
      • APY and health factor top up calculator
      • gCOTI APY boost
      • APY boost calculator
      • Two Factor Authentication
    • Treasury Fees
  • 🟢gCOTI
    • gCOTI
      • gCOTI Tokenomics
      • How to get gCoti
    • Utility
      • gCOTI APY boost
        • gCOTI APY boost
        • APY boost calculator
        • Deposit gCOTI
        • Withdraw gCOTI
      • Governance
      • Liquidations (planned)
    • gCOTI fees
    • Contracts
      • gCOTI on COTI
      • ERC20 gCOTI
    • Contracts and bridge
      • Bridge: V1 -> V2
      • Native V2 <--> ERC20
  • 💰Djed and Shen
    • DJED
      • DJED
      • Types of stablecoins
      • Overcollateralization
      • Minting and Burning
      • DJED on BNB chain
    • SHEN
      • SHEN and its Rewards
      • Minting and Burning
    • Exchanges
  • 💻Node operation
    • Setup
      • Requirements and Setup
      • Node security
    • Maintenance
      • Monitoring
      • Updates
    • Mobile connection
Powered by GitBook
On this page
  1. Djed and Shen
  2. DJED

Overcollateralization

PreviousTypes of stablecoinsNextMinting and Burning

Last updated 1 year ago

DJED uses exogenous collateral (ADA). This means that the collateral that backs DJED, ADA, has its own utility (its primary use-case is separate from the Djed stablecoin project), and is completely independent of the Djed protocol. ADA is used to buy DJED's reserve coin SHEN.

DJED is overcollateralized by 400% to 800%, this means that it has 4 to 8 times more underlying value in the form of SHEN (that is purchased with ADA) backing it than the total sum of DJED minted. Algorithmic stablecoins on the other hand are usually only partially collateralized or undercollateralized.

The stability of DJED is based on this overcollateralization and not on trust in a governance token.

For more deatiled information please go to and .

💰
https://cotinetwork.medium.com/djed-frequently-asked-questions-f636735be76
https://djed.xyz/faq