Today I thought I would do a quick update highlighting the rewards being earned on DJED (Stablecoin) and SHEN (reserve token) with are on the Cardano eco system. I know about them because of COTI being the ones supplying this service and I am invested in COTI.
First though lets look at how they are doing before we get onto the rewards being generated.
Looking at the latest figures for DJED and Shen holders and what it means for staking rewards. There are currently 41.5 million ADA tied up in DJED which was used to mint 16.548 million DJED which is Cardano's stablecoin. Still small numbers but they need another 4-8 x the amount as reserve coin which is named SHEN. The smart contract shows the reserve coin SHEN has 409% or just over 4 x currently which allows both DJED and SHEN to be minted and burned. Under 400% means that no SHEN can be minted
The good news is that these figures are set to rise if we compare DJED's performance against the other Cardano stable being Indigo's IUSD stable. As you can see it has lost it's peg of $1 and now sits at $0.88c but is still redeemable for $1 due to it also being over collateralized and sits at 190%. This is only a worry once it drops below 100%.
The Staking Rewards
Here are some of the decentralised exchanges (DEX) where holders can provide liquidity and earn farming rewards. There are also delegation rewards for SHEN holders which is the bonus for holding SHEN providing the security for DJED.
Muesli Swap
ADA/DJED 50% APR
ADA/SHEN 15% APR
Minswap
ADA/DJED 37% APR
ADA/SHEN 7% APR
VyFinance
ADA/DJED 35% APR
ADA/SHEN 10% APR
20% APR on Liqwid for DJED
The delegations are paid out on a regular basis for SHEN holders so the above is basically a bonus. The last 4 EPOCHS which is 440-443 for the month of October saw a total of 55 408 ADA distributed to 10 700 SHEN holders which is around 5 ADA each depending on your size of the bag which is rather dismal if you ask me. Still the real benefit of SHEN is when the price of ADA rises the number of ADA required to redeem DJED for $1 is less and these are given to the SHEN holders and why it could be a great investment over and above the rewards. This is slightly more complex than most crypto staking and you need to understand the figures of what you are getting involved in.
DJED and SHEN have proven that this stable coin works with the over collateralization being at 4-8x with DJED remaining stable holding it's peg throughout the bear market. I do expect these numbers to rise considerably over the next 3 years with prices expected to rise with stablecoins offering a safe haven where you can maintain your value. Personally I still prefer the likes of HBD but can see why every community needs their own stablecoin in their eco system.