Why Djed for your Web3 Project?
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Many Web3 projects have tokens that are intended to serve as the currency for users to spend within their ecosystem, creating a circular economy with network effects. However, to properly serve as a currency, a token must be able to perform the functions of money as means of exchange, store of value and unit of account. This requires a stable token. Otherwise, when everyone expects the token's price to rise, no one will spend it; and if people expect the price to fall, they will be reluctant to accept it as payments or will be demotivated to accept it as rewards. A token's price volatility prevents it from fulfilling its role as a community currency.
On the other hand, token holders certainly expect the token's price to rise. Therefore, making the project's token itself stable is not a viable option.
The solution for the dilemma above is to have a two-token system: a volatile project token as usual coupled with a crypto-backed stablecoin backed by the project's token.
A stablecoin backed by your project's token brings extra utility to the token: it becomes the reserve asset of your project's stablecoin.
A stablecoin backed by your project's token gives your users the possibility of protecting themselves against downturns in the price of your project's token without having to completely sell your project's token in centralized exchanges.
Among decentralized stablecoin protocols, Djed has that make it more desirable than other protocols.
A stablecoin based on the Djed protocol may be branded in alignment with your project's own brand, showing your project's commitment to stability.
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