💡
COTI FAQ
  • 💡COTI FAQ
  • 🏢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 Viper wallet
    • Addresses and Transactions
      • Wallet Address
      • Send assets
      • Address Book
  • 🔵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
    • ERC20 gCOTI and bridge
      • ERC20 gCOTI
      • gCOTI Bridge: ERC20 to native
      • gCOTI bridge: Native to 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

Types of stablecoins

PreviousDJEDNextOvercollateralization

Last updated 2 years ago

Stablecoin
Description
Examples

Fiat backed stablecoins

Centralized and with a scale factor of 1, meaning that for each $1 you deposit as collateral, you get $1 worth of the stablecoin. These stablecoins are backed by actual fiat currencies like the US Dollar, and require centralized trusted off-chain partners and mediators like banks. These stablecoins have single points of failure: censorship risk (the stablecoins may be seized) and regulatory risk, which means that the third party entity requires trust from the users.

USDT, USDC

Algorithmic stablecoins

Decentralized in nature and their stability is based on trust in the governance token. Algorithmic stablecoin usually use endogenous collateral, and are oftentimes undercollateralized.

FRAX

Failed: TerraUSD/ LUNA

(Over-)

Collateralized stablecoins

Decentralized and use exogenous collateral, meaning that the collateral that backs the stablecoin has a primary use-case that is separate from the stablecoin project. The amount of collateral determines the level of safety the stablecoin poses.

DJED

For more detailed information please go to .

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