COTI launches Djed's Reserve coin, Shen Coin

COTI released a reserve currency, called Shen coin for its Djed stablecoin at end of January 2023. Djed & Shen ADA pairs can be bought and traded on Wingriders DEX and centralized exchanges like BitTrue.

Why the names 'Djed' and 'Shen'?

Both 'Djed' and 'Shen' derive their names from ancient Egyptian symbols.

'Djed' was an Egyptian symbol that represented stability. It was also known as 'The Backbone of Osiris' which also represented strength and stability.

Shen is named after an ancient Egyptian symbol that represented infinity and durability. According to COTI

Shen has a deep connection with infinity, eternity, protection, and completeness given its circularity ... we found this name to convey the characteristics and properties of Djed’s Reserve Coin appropriately

COTI to rollout a reserve coin for Djed

Here are a few points to note about Shen:

  • Shen will only be available to whitelisted buyers; or what COTI terms as 'qualified investors'. KYC will probably be needed.
  • Shen will be tradable by its holders
  • Trading the Shen coins will help keep Djed's peg stable by providing sufficient liquidity to the stablecoin's ecosystem.
  • Shen coin holders will receive a share of its transaction pool

The Shen coin will not itself be stable i.e it will not be pegged to the dollar or any other coin. Instead, it will be provide stability to the price of Djed.

Unlike UST, Djed is 400 ~ 800% collateralized. To mint Djed, at least 400% collateral needs to be provided.

How Djed compares to other algorithmic stablecoins

BlockchainTerra ClassicCardano, COTIErgo
Reserve (stabilizer)LUNAShensigRSV
Reserve Ratio0% ~ 100%400% ~ 800%currently ~378%

For context, if Djed value increases to 1.03 USD, Djed will be sold to buy Shen coins until the 1 USD per Djed peg is restored. Similarly, if the value falls below the 1:1 peg, Djed coins will be minted and Shen coins will be 'burnt' to restore the peg. This process is algorithmic.

The exchange between ADA, Djed & Shen will be controlled by a smart contract. Users will provide ADA to the djed smart contract to buy (receive) Djed tokens. Similarly, they will send Djed tokens to the smart contract which will be burned in exchange for ADA tokens. In case there are not enough ADA in the smart contract to pay all Djed sellers, Shen coins will be minted and sold for ADA to provide stability.

As long as the ADA reserve ratio is below the required level, Shen holders will not be able to redeem their Shen coins for ADA. Djed holders will take priority in these situation.

Djed, Shen, ADA relationship chart

Incentives for Shen coin holders

In exchange for their obligation to maintain Djed's stability, Shen holders will be rewarded. Fees charged during every Djed or Shen mint / burn will be deposited into an ADA pool. Shen holders will receive a share of the pool. Naturally, as this pool grows, the Shen price will appreciate in value thus benefiting its holders.

Other transaction fees will be charged in ADA, then converted to COTI and deposited into COTI treasury for distribution to its users.

Learn more about Djed's shen coin on this video by COTI Group or by reading Djed's whitepaper.

Djed fees distribution

To honour these incentives, the Djed Protocol will boast 3 unique fees models namely:

  1. Minting fees
  2. Burning fees
  3. An operation fee
Fee TypeFee PercentangeMinimum Fee
Djed min Fee1.5%1 ADA
Djed burn Fee1.5%1 ADA
Shen min Fee0.2%not set
Shen burn Fee0.5%not set

Djed fee model structure

ADA will be used as collateral

As explained above, to mint either Djed or Shen, users will need to provide ADA as collateral.

During the Cardano Summit 2021, Input-Output HK (IOHK) announced a collaboration with COTI as Cardano's stablecoin network. The COTI network will be the official issuer of Djed.

Back in July 2021, IOHK CEO Charles Hoskinson had shared the stablecoin design for Decentralized Finance DeFi transactions. Now, it plans to use COTI's Trustchain-based system, which is a machine learning-based consensus algorithm.

In the statement, the COTI development team announced that stablecoins are a "killer app."

Chief executive of COTI Group Shahaf Bar-Geffen, said;

"I believe that adding the Djed stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform ... Djed will to Cardano be what USDT is to ethereum, BTC ..."

He said that Djed would operate by sustaining a reserve of base coins. It will be used for transactions on Cardano by controlling "volatile and exorbitant gas fees." Cardano CEO Hoskinson announced that Djed stablecoin could be a game-changer in the cryptocurrency space at a time when the industry is already experiencing tremendous growth.

"Djed shares our commitment to formal verification, proving a robust method of combating price volatility of crypto markets."

COTI's partnerships inside the Cardano ecosystem

Recently, COTI has been working on partnering with Cardano dApps. Some notable ones include Aada Finance, World mobile token, ADAX, SundaeSwap, ADAX, Genius Yields, VyFinance, MeowSwap, AdaPay, Indigo protocol, MinSwap, Spectrum (formerly ergoDex), Indigo protocol At least 35 Djed partnerships have been announced so far.

Djed Partnerships announced in 2021

YearMonthCOTI Djed Partners
2021SeptemberOccam.Fi, Ardana, ADA Pay
2021NovemberCatalyst, Lovelace, Centaurify, SundaeSwap
2021DecemberADA Handle, AdaSwap, Spectrum (ErgoDEX)

Djed Partnerships announced in 2022

YearMonthCOTI Djed Partners
2022JanuaryDOEX, MeowSwap, Indigo Protocol, ADAX
2022FebruaryWorld Mobile Token (WMT), Aada Finance, NFT-MAKER
2022MarchGenius Yields, Cardax, LiqWid Labs, Revuto
2022AprilMinSwap DEX, Revelar, Fluid tokens
2022MayGADA, CardaShift, Gerowallet, Cardahub
2022JuneMuesliSwap, Celestial City, Trading Tent
2022JulyKirkStone, Astarter
2022AugustWingriders, JaraNetwork
2022SeptemberCardano Warriors, Cogito Protocol
2022OctoberEmpowa, Axo

These partnerships were in preparation for Djed's launch. Such that on launch, the stablecoin would hit the ground running i.e immediately enter circulation.

For these Cardano DEXs that COTI has partnered with, Djed will bring stability into liquidity pools. Currently there are no stablecoins inside the Cardano ecosystem. The absence is being felt by LPs (liquidity providers) in form of high incidences of impermanent loss. Djed will mitigate this sort of loss in a large way, thus encouraging more ADA holders to participate in LPs and yield farming opportunities.

Djed's launch will therefore lead to a growth in Cardano's TVL by boosting the DEXs liquidity. This increase in liquidity will reduce the prevailing higher slippage percentages on swaps.

COTI rolls out Djed on Cardano chain

Djed launch will help Cardano users approach DeFi within the ecosystem with confidence because it will bring predictability as it will not be volatile.

DJED to launch on ETH and BSC

COTI Network's $DJED Stablecoin Soon to Launch on ETH and BNB

by COTI Channel

Following the successful launch of $DJED on the Cardano network, COTI is now planning to expand its reach to other popular networks, including Ethereum (ETH) and Binance Smart Chain (BNB). This success has led to an increase in demand for DJED, with the COTI team receiving requests to integrate the stablecoin into other blockchains. But how will this work, and what are the advantages of DJED being a multichain stablecoin?

Speaking on Monday, March 20th, COTI CEO Shahaf Bar-Geffen said, "Djed will be on other chains as well. Obviously on Ethereum and Binance Smart Chain just to name a few...because DeFi ecosystems need a stablecoin that is stable and reliable."This move will allow users to transact and exchange value across multiple networks with ease.

DJED's impact on other chains

DJED will exist as a wrapped token on other blockchains, with its core mechanism remaining on Cardano and operating in the same manner as it does now. COTI has chosen to partner with ChainPort, a security-focused cross-chain protocol that bridges tokens across leading blockchains in a fast and permissionless manner, to achieve this.

Despite recent market volatility, $DJED Stablecoin has demonstrated its stability and is now gaining popularity among DeFi protocols due to its exceptional multichain capabilities. The multi-chain approach is a major milestone for COTI, as it brings the benefits of $DJED to a wider audience. By leveraging the unique features and capabilities of each network, COTI is able to create a seamless experience for its users, with fast, low-cost transactions and a high degree of security.

The launch of $DJED on multiple networks reflects the growing demand for stablecoins in the cryptocurrency market, as users seek to avoid the volatility and uncertainty of other digital assets. Stablecoins offer a safe and reliable way to transact and exchange value, without the risk of sudden price fluctuations or market crashes.

For COTI, the multi-chain approach is just the latest in a series of groundbreaking developments that have cemented its position as a leader in the world of blockchain and cryptocurrencies. With a strong focus on innovation, usability, and security, COTI is well-positioned to meet the evolving needs of users and businesses in this rapidly changing market.

In addition to $DJED, COTI also offers a range of other products and services, including a decentralized payment network, a blockchain-based marketplace, and a suite of developer tools and APIs. These offerings are designed to provide users with a complete ecosystem for transacting and exchanging value, with the speed, security, and convenience that they demand.

As the world of cryptocurrencies continues to evolve, COTI is poised to play a leading role in shaping the future of this exciting and dynamic market. With its multi-chain approach and innovative products and services, COTI is set to transform the way that users transact and exchange value, bringing the benefits of blockchain and cryptocurrencies to a wider audience than ever before.

The benefits of DJED as a multichain stablecoin

Expanding to other chains will significantly increase DJED's potential user base, allowing it to attract higher rewards for $SHEN holders while also benefiting $COTI Treasury participants with higher operational fees. Furthermore, a multichain DJED will result in larger DeFi ecosystems and greater utility, potentially leading to even more stablecoin adoption and growth.


DJED's success in keeping its peg and increasing in value has increased demand for its integration into other blockchains. DJED will be integrated into Binance Smart Chain and Ethereum first, with more to follow later, thanks to ChainPort's support. The COTI team will keep their users updated on the project's progress as they continue to work on this exciting development. DJED's success in these uncertain times demonstrates the demand for a stablecoin that can weather the storms of economic volatility and provide a safe haven for investors.


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