This project has been archived
This project has been archived by Cardano Cube. A project will be archived when the direct link to their website or social media accounts are broken or if there is too little online activity from the project to still be listed. If you're the owner of this project. You can re-verify your project by contacting us.
This project has been flagged by the community!
We advise you to be cautious and 'do your own research' before interacting with this project. Flagged projects are labelled based on claims by community members contacting Cardano Cube. If you're the owner of this project. You can verify your project by contacting us.
The community raised some concerns regarding this project!
We advise you to 'do your own research' before interacting with this project. This notification is shown based on claims by community members contacting Cardano Cube. If you're the owner of this project. You can verify your project by contacting us.
Shen
SHEN reinforces the reserve rate of Djed's smart contract, providing added stability to the stablecoin.
About
When purchasing Djed, the smart contract automatically converts the deposited ADA into the stablecoin, turning it into a liability. However, the value of ADA can fluctuate, potentially resulting in a loss if the token is sold back to the smart contract. This is where SHEN steps in, providing additional equity and reserves compared to the initial deposit of ADA.
The token serves as an indicator of the stability of the reserve index, with a higher reserve index providing greater protection for Djed. In addition to maintaining Djed's parity with the dollar, users can earn rewards by buying and selling SHEN. The price of SHEN is tied to the price of ADA, meaning that if the value of ADA increases, so does the value of SHEN, and vice versa if the value of ADA decreases.
By participating in the market for SHEN, users can not only help to stabilize the protocol but also earn additional rewards. The decentralized nature of Djed and other stablecoins like it, based on blockchain technology, contributes to their transparency, as all transactions are publicly recorded and verifiable. This makes them less prone to censorship compared to centralized, third-party controlled stable assets.
However, it is important to note that there are still risks associated with stablecoins such as Djed. While it offers protection against price fluctuations, it can still be impacted by external factors that may affect its stability. As with any investment, it is crucial to exercise caution and thoroughly understand the potential risks involved.
