Milkomeda Djed

Milkomeda's Djed Dollar was the first Djed-based stablecoin on an EVM-compatible blockchain. It was deployed on Milkomeda-C1, an EVM-compatible sidechain of Cardano.

Milkomeda was developed and operated by dcSpark, a company founded by ex-Emurgo engineers and funded by the cFund. Two of dcSpark's founders (Nicolas Arqueros and Robert Kornacki) were part of Djed's original R&D team, as part of a collaboration between Ergo, Emurgo and IOHK.

dcSpark wrote the Milkomeda Djed Catalyst Proposal and this proposal was funded by the Cardano community. Therefore, this is the first community-funded implementation of Djed. dcSpark used aprt of the funding to hire VacuumLabs, who did the atual implementation. This implementation was later improved by members of The Stable Order and by Bloxico. And a deployment was made in April 2023.

This Djed-based stablecoin was based on the Belus implementation of the Osiris version of Djed. Its source code is publicly accessible and the smart contracts are completely immutable and autonomous (i.e. not operated by anyone). This implementation depends on an external oracle. In the case of Milkomeda Djed, it depended on the Milkomeda Open Oracle (MOO), the only oracle available on Milkomeda. It was supposed to be operated by a Milkomeda DAO; but it turned out to be operated just by dcSpark.

Unfortunately, dcSpark decided to stop operating the oracle in 2025 and decided to stop operating Milkomeda in Q3 2025. Since Milkomeda ceased to exist, Milkomeda Djed stopped existing as well. This decision by dcSpark and the way it affected Milkomeda Djed now serves as a cautionary tale illustrating the importance of working on truly decentralized blockchains that are unstoppable and non-censorable. The risk of side-chains and L2s ceasing to exist is too high.

These were the parameters used in this deployment:

• Peg: USD

• BaseCoin: mADA

• Fee: 1.5%

• Minimum Reserve Ratio: 400%

• Maximum Reserve Ratio: 800%

• UI Fee: 0%

• Dev Fee: 0.25% initially and linearly decreasing to 0%.

• Maximum Transaction Limit: ~ 10000 USD worth of mADA (enforced by the contract.)

MOO Oracle

• Sources were checked every ~10 seconds

• Outliers were removed if the prices they provide differ from the mean by more than 2 standard deviations.

• The mean of the remaining prices is calculated.

• If the new mean price differs from the last price posted on the blockchain by more than 1%, the new mean price is posted and the price is updated on the blockchain.