- Liqwid Finance has announced the launch of its DJED market.
- DJED is now available for lending and borrowing on Liqwid.
- Liqwid has also prompted SPOs to upgrade liquidation bots.
Cardano (ADA) is having an impressive start to 2023. The ecosystem is actively announcing new developments and partnerships, with the show-stopper being the possibility that the Age of Voltaire is inching closer, which will propel the ecosystem toward full decentralization.
Liqwid Finance is a decentralized interest rate protocol for lending on Cardano, and DJED is Cardano’s pioneering decentralized stablecoin.
On March 2nd, 2023, Liqwid Finance announced the successful launch of its DJED market, as well as the “addition of qDJED as a collateral for the ADA market.”
Lending and Borrowing DJED
Liqwid Finance has stated that the front end of the DJED market is live and that the protocol will monitor the infrastructure around the launch to ensure a “smooth roll-out.”
In addition, Liqwid Finance has also considered DJED’s risk parameters, which are listed as 75% maximum loan-to-value (LTV), 80% liquidation threshold, and 10% liquidation bonus. Liqwid has also prompted stake pool operators (SPOs) to upgrade liquidation bots to the latest version, ensuring that “future updates to these bots should be just a `docker pull` away.”
In effect, DJED is now available for lending and borrowing on Liqwid, and lenders are responsible for supplying liquidity to the market and earning interest on their deposits.
Adding a lending and borrowing mechanism to DJED provides additional liquidity, and the stablecoin is made exchangeable for other crypto and fiat currencies, extending its use cases on DeFi platforms.
At the time of writing, DJED is recording a 24-hour trading volume of $351,965 and a reserve ratio of 527%.
On the Flipside
- DJED has underwhelmed the community with low holder volumes reported recently.
- Liqwid Finance was involved with the launch of the DJED stablecoin on Cardano earlier this year.
Why You Should Care
The launch of DJED stablecoin on Liqwid Finance provides additional liquidity and use cases for Cardano, particularly extending the ecosystem’s reach on DeFi platforms.
Read more about Cardano’s decentralized stablecoin DJED:
DJED: Cardano’s Decentralized Stablecoin
Read more about DJED’s official launch:
Cardano’s Djed Stablecoin Hits Official Release