Djed, a Cardano-based algorithmic stablecoin, has collected over US$10 million in its reserves in the first 24 hours since it was launched on Tuesday.

See related article: Cardano expresses interest in buying CoinDesk from cash-strapped Digital Currency Group

Fast facts

• Djed is an overcollateralized stablecoin that is pegged to the U.S. dollar. It is backed by ADA, the native cryptocurrency of the Cardano blockchain.

• Djed had a circulating supply of over than 1.736 million tokens backed by more than 27 million ADA (about US$10 million) in its reserves, giving it a 591% reserve ratio at 9 p.m. in Hong Kong, according to the stablecoin’s website.

• SHEN token, the stablecoin’s reserve currency that shares Djed’s collateral pool, is also minted by locking up ADA. The shared pool allows the stablecoin to maintain a collateralization rate between 400% and 800% despite price fluctuations in ADA.

• When Djed’s collateral drops below 400%, the smart contract blocks users from burning SHEN. When the ratio goes above 800% the network will prevent new minting of SHEN.

• SHEN holders are incentivized to stake their tokens by receiving mint and burn fees, delegation rewards and farming rewards.

• Djed was launched by blockchain payment firm Coti and developed by Input Output Global (IOG), after passing a security audit, according to Coti.

See related article: Stablecoin project Ardana on Cardano halts operation