COTI makes an invaluable contribution to the boosting of Djed

COTI has indeed managed to play a most significant role in contributing to the overall boosting of Djed. The many ways in which this was carried is through being in total control of all of the factors related to the UI of the platform Then there is the factor of an immense exercise of business development, covering the formation of over 40 partnerships, along with smart contract positioning. 

The reserve ratio is one of the prime segments of Djed’s framework. This spells out the amount of Cardano that happens to be in reserve in terms of collateralization and maintaining the balance of $DJED. After many permutations and combinations, the resultant observation and understanding are that the maximum range of the reserve ratio happens to be between 400%-800%. This ratio figure was arrived at with the close examination of the highest amount of monthly lessening of $ADA’s pricing always, which in turn happened to be around about 66% when the research was carried out. 

Therefore, the conclusive factor that came out of it is that the over-collateralization of the $DJED, to the tune of approximately 300%, will enable an adequate amount of reserve. However, despite all of that, the decision was taken to standardize the lowest reserve ratio at 400% to maintain added security to all of the $DJED holders in the case scenario that even with the $ADA’s pricing being lowered, sufficient reserve will exist in the contract. 

One more relevant factor related to the Djed protocol happens to be the fee structure, which ensures the comfortability of the $SHEN and the $DJED holders. The platform of Djed was created to carry out prime mint/burn transactions of high figures. Therefore, certain requirements were fulfilled accordingly. In the case of all minting and burning fees related to $DJED and $SHEN, which have been gathered on the platform, it is for distribution to the $SHEN holders and which shows on the $SHEN pricing.

There will be a factor of delegation rewards offered to $SHEN holders. The $ADA will be duly assigned to a specific public skating pool. Where the rewards obtained by the pool are concerned, they will be deliberated upon with the help of a snapshot. The delegation rewards will then be allocated to deserving $SHEN holders. There are also operational costs at 0.5% for every transaction made. The collection is done with a standard fee of 100% ADA, in the case of minting or burning of $SHEN and $DJED. To add to that is 25% of delegation rewards. In the future, besides the delegation rewards, platform fees, LP rewards, and Farming rewards will be introduced.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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