Roughly over a week since launch, the Cardano-based over-collateralized stablecoin Djed has attracted over 30 million ADA tokens as backing.

The much-anticipated stablecoin was launched last week after months of development by Cardano code maintainer IOG and COTI, a fintech platform specialising in creating price-stable coins.

To avoid a repeat of the massive drop faced by TerraUSD and the luna token, which plunged by more than 99% in May, DJED was designed to be collateralized by multiple tokens and necessitates 400-800% of the issued value to be staked before it is distributed to users. DJED is backed by ADA and uses SHEN as a reserve coin. At the time of writing, Djed had a reserve ratio of 609%, indicating that each DJED is supported by six times its value in ADA.

Users can earn rewards by buying and selling Shen, which helps in maintaining Djed’s USD currency peg. This may fuel liquidity not only for Cardano’s $108 million decentralized finance (Defi) market but also for the upstart ecosystem. In the past week alone, the Total Value Locked (TVL) in Decentralized Exchanges( DEXs) for DJED and SHEN has grown by 3.4M ADA and 6.1M ADA.