Definitely disappointing numbers for DJED after 12 months and no it is not a failure as it has done the job it was required to do which is to hold it's peg. As an investment right now it is just not viable due to ADA being below $1 in value.
DJED the Cardano stablecoin celebrated it's first birthday yesterday and for myself it is no big deal even though I do benefit from the earnings COTI makes for servicing this. Every time DJED is burned or the SHEN token is minted the service fees are collected and once a month those ADA are sold for COTI and are filtered back to the COTI investors in the Tresaury which boosts the APR.
DJED has roughly 40 million ADA tied up in it's stake and if I am honest as a stablecoin that is rather disappointing especially as it has been active for 12 months. The DJED token has held it's peg to the $1 value throughout even through the turbulent times of FUD generating negativity. I do think the timings are also crucial of where we are in the cycle and at launch it was basically already near the bottom for crypto prices. ADA is currently at $0.49c so as an investment buying 1 DJED for more than 2 ADA is not exactly very smart even if you are earning an APR.
I think we will be talking much bigger numbers within the next 2-3 years and that is mainly down to ADA having increased it's price above the $1 DJED price and then it becomes far more lucrative to purchase DJED. Those involved now holding DJED will in theory lose even though their investment is stable. If they were holding ADA instead of DJED they would see a much bigger return and would be able to more than double what they would of had if they had been in DJED.
I see HBD in the exact same way I see DJED and will only invest in HBD when the timings are right. The 20% is tempting, but not tempting enough considering the upside by holding HIVE where we can earn 11% in the meantime and go big when Hive is back up around $3 or more. This would equate to a 1000% swing and now the 20% looks like a poor decision. What is holding back HBD is also holding DJED back in a similar way and there is nothing wrong with the stablecoin and is more about timings.
I year ago when DJED first launched ADA was priced at $0.39c so the token has grown in value by around 22% and anyone who bought DJED needed to earn an APR of more than 22% just to stay current at what they had last year in dollar values. This is more about the situation of the market and why one cannot push something that as an investment is not economically viable. Even a 30 or 40% APR on offer would not entice the investors because the upside from where the prices are now are too big to compete against. ADA has an all time high of $3.09 and in every token holders mind that is what they are really thinking as the next minimum top. Until then I expect the numbers will stay around the 40 million ADA as a TVL in DJED and SHEN and expect these numbers to 100 x or more when we see the ATH's reappear again.
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