Cardano's ecosystem is seeing a flurry of new developments and partnerships in the early part of 2023, with the Age of Voltaire looming on the horizon. One major development is the launch of DJED, Cardano's pioneering decentralized stablecoin, on Liqwid Finance, a decentralized interest rate protocol for lending on Cardano.
Liqwid Finance announced on March 2nd that its DJED market is now live, with the addition of qDJED as collateral for the ADA market. The protocol is monitoring the launch closely to ensure a smooth roll-out, with risk parameters set at a maximum loan-to-value of 75%, an 80% liquidation threshold, and a 10% liquidation bonus. Liqwid Finance has also prompted stake pool operators to upgrade liquidation bots to the latest version.
With DJED now available for lending and borrowing on Liqwid, lenders can supply liquidity to the market and earn interest on their deposits. This added lending and borrowing mechanism increases liquidity and makes the stablecoin exchangeable for other crypto and fiat currencies, expanding its use cases on DeFi platforms. As of now, DJED has a 24-hour trading volume of $351,965 and a reserve ratio of 527%.