Yesterday afternoon the COTI team launched the stable coin for Cardano (ADA) called DJED. These are still early days and we can expect minting to carry on for the foreseeable future.
Having invested in COTI and staked in the Treasury the benefits will only be seen later this month when the COTI team collect the service fees earned from the minting and burning of DJED and SHEN. For those of you that don't know SHEN is the reserve coin that maintains the stable peg for DJED. DJED needs 4 x the value in SHEN before it can be minted up to 8 x before SHEN is maxed out protecting the SHEN investors. This sounds complicated but is fairly simple once you understand the mechanisms.
Knowing that COTI earn 0.5% per DJED and SHEN minted and burned we can come up with a figure of what has been earned so far. These are still early days knowing the number of partnerships DJED has in the Cardano DeFi eco system.
With over 40 partnerships and more being added we have only seen a few that have set up staking already with liquidity pools.
So far we know there is just over 27 million that has been used to mint DJED and SHEN so I have broken down the 2 figures as the values differ for minting. DJED is valued at $1 so takes 2.67 ADA to mint 1 DJED. SHEN is valued at 1.09 ADA.
0.5% of the DJED supply in dollar value terms is $8681 and when we look at SHEN 0.5% equates to $45 520 so combined COTI earned $54 201 after 24 hours. That is 542K COTI that we know is coming off the exchanges after only 1 day. How much can COTI earn within the next 4 weeks is the unknown factor and suspect it will be many millions of COTI when the buy orders are placed. We know what would happen if someone came and purchased a few million Hive so this should be interesting to watch what happens with the price of COTI. The expectations are we shall see a 20c COTI within the next 4-6 weeks which is a 100% increase in price. The knock on effect will result in an increased APR increasing the earnings of those who have COTI staked in the treasury. Currently the APR on Level 1 no risk is 7.72% which has already risen by 0.7% in the last 24 hours.