5 ways to make money with Djed & Shen Coin - Cardanos revolutionary stablecoin
Exploring the Rewards and Risks of Cardano's Djed Stablecoin - Insights on the Role of SHEN and Treasury Distribution (with example)
Hey yall - Welcome back to my crypto newsletter. This will be a more ELI5 straight to the point blog post on how to earn money with Djed, Ada, Shewn and Coti.
Djed Stable coin will be a game changer for the Cardano Ecosystem and is about to launch next week. Here is why you should be as excited as everyone else. Similar to 2017 when USDT (Tether) was launching and boosted the entire Ethereum ecosystem to leverage Defi and its Payment systems.
So how to make money and earn rewards with Djed token & its reserve coin Shen?
There are multiple ways to earn money/rewards with Shen/Djed/ADA & Coti Coins
Increase of Shen Reserve Token value: as 2nd safety measure and reserve (1st safety measure: over collateralization of Djed itself up to 800%).
Shen will be limited once the amount of the reserve ratio is reached (controlled by smart contract) in order to prevent dilution of rewards to Shen holders —> value increase
As Pool grows from every interaction/transaction (fees) —> increased liquidity —> increase of reserve coin value $Shen
Rewards for holding Shen Token
Every mint & burn transaction for Djed & Shen inlcudes an ADA fee - those fees will go to a pool and shared with Shen holders. (see example below)
Earn rewards thru the operating fees for Coti holders
every trx will include an operating fee paid in ada & converted to $coti token
these token will be streamlined to the Coti treasury and distributed to Coti holders (see treasury amount below) -
Staking Coti in their treasury will be rewarded with high % APY (can change)
Coti Token value increase
the demand for Coti used as payment token will increase with utility & smart incentives (treasury)
Farming Shen & Djed Token on Minswap, Wingriders & MuesliSwap
You will be able to farm Shen token
stake Liquidity Token for even more rewards
staking stable coin for providing liquidity
Djed & Shen are already announced to be listed on several Cardano Dex as well as Bitrue - a centralized exchange. I am sure once liquidity of these coins increase quickly, Binance, Kraken and all the other big exchanges wont want to miss out and start to list them as well (hype, awareness —> increase in liquidity & value)
Sooo…Where does the money come from to reward its holders?
Lets say there are 2 million interactions of burning & minting of Djed coin in 3 years (very conservative - I believe it will be many more). That results in about $500 million worth of ADA fees distributed to Shen holders. Depending on the number of Shen holders (capped) everyone gets their fair share.
Also around $159 million of operational fees will be paid out to Coti holders.
As you can see, nothing is being rewarded out of thin air - everything makes sense and guarantees long lasting rewards.
Source: @coti_ship
Risks:
High APY’s and everything including smart contracts involves risks as well. APY’s can quickly change based on the amount of holders and coins being provided in a pool. Smart contracts are also prone to hackers. BUT - as most of you know everything built on Cardano is based on years of research and audited by several companies to guarantee the highest amount of safety.
Nevertheless - always keep an eye on your holdings and do not spend more than you can afford to lose.
Personally I am more bullish on Cardanos 1st algorithmic and overcollateralized stable coin than ever.
Also…Do not make the mistake to compare it with the failed Terra Stable coin or similar. The tech behind this token is optimized and well researched. Closest to compare it with is the Ergo Sigma stable coin that has never lost its peg in neither Bull nor the most recent bear market.
If you have enjoyed this article make sure to share it on Twitter and other Social Media platforms.
We would also appreciate it if you could stake your ADA with our Single Pool Zeitgeist (Ticker ZEIT) earning an extra 4.2% APY (life time ROI since inception)
In case you still have questions about what a reserve coin is, the difference between algorithmic and over-collateralized stablecoins, the Coti treasury - have a look at the infographics below. There is huge amount of content online for you to research as well but hopefully this blog post helps you in your initial decision making.
I am ALL IN nevertheless :-)
Coti Treasury - You can unstake any time you want (important feature)
Cotis treasury has grown over 400% the last couple of week showing an impressive growth and excitement about finally having a overcollateralized stablecoin on Cardano. Very much needed for Defi, liquidity and payment using cryptocurrency and $ada.
Does a max reward of 56.09% look scammy or scare you? No need to be scared but always watch your holdings as these numbers can change quickly depending on the size of the treasury. See examples of how to risk manage your Coti here
Source: @cardano_daily