COTI CEO Shahaf Bar Geffen said the firm has always planned for Djed to fork from Cardano to other blockchains, but recent stablecoin turmoil has accelerated the process.
The turmoils in the stablecoin sector began with the disclosure that Circle’s USDC held about $3.3 billion in accounts at Silicon Valley Bank — a bank that filed for bankruptcy on March 17. Concerns about not being able to redeem at $1 denominations caused a loss of pegs. During the peak of the turbulence, USDC dropped to as low as $0.821 on March 11. The peg has been reset ever since.
The instability spreads to other DeFi protocols and stablecoins. DAI, which holds about 34% of USDC collateral, is one of the hard-hit victims, losing its peg and plunging to a low of $0.891. Since then, it has also reset its peg.
Since March 11, the stablecoin has lost 25% of its market cap, falling to a 17-month low at $35.3 billion.
Bar Geffen said that amid the turmoil of stablecoins, Djed has not lost its peg. He attributed the token’s stability to being decentralized, over-secured, and verifiable — as collateral is viewable on-chain.
“This is why the trust remains, and this is why Djed did not lose its peg even though much bigger stablecoins lost their peg.”
He also mentioned that non-Cardano protocols required Djed to go multi-chain.
The COTI CEO said going multichain was always in the plans. But following the requests, multichain plans will “probably [be] exercise[d] much faster.”
The scaling Djed on top of other larger DeFi ecosystems will result in more fee benefits, value for Shen holders, and better APY for treasury participants.