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  • #031: 🚀 DJED & Liqwid: Next week is going to be big for the Cardano ecosystem

#031: 🚀 DJED & Liqwid: Next week is going to be big for the Cardano ecosystem

💰 Liqwid: Unleashing the Power of Yield Generation

Welcome to This Week In Cardano

Read time: 5 minutes

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Hi Cardano Community,

Welcome to This Week In Cardano - your daily Newsletter covering the major updates in the Cardano Ecosystem!

This is what we have for you today:

  • 🚀 DJED and Liqwid: Next week is going to be big for the Cardano ecosystem

  • 💰 Liqwid: Unleashing the Power of Yield Generation

  • 💎 Gem of the Day

This Week In Cardano

Your Daily Newsletter covering all major events happening in the Cardano Ecosystem

DJED and Liqwid: Next week is going to be big for the Cardano ecosystem

The Cardano community was thrilled with the news of two big releases planned for next week. DJED and Liqwid are going live on Cardano mainnet next week.

These are two much-anticipated projects on Cardano, and the launch of these protocols represents the gradual maturation of Cardano's DeFi ecosystem.

Liqwid v1 Mainnet Launch

Liqwid team today announced its much anticipated mainnet launch next week.

Liqwid is an open-source & decentralized lending and borrowing protocol, where users can securely earn interest on deposits and borrow assets with ease while earning yield on ADA.

Liqwid is built on the robust and proven eUTXO architecture of Cardano, and utilizes its liquid staking functionality. This allows users to stake their ADA and simultaneously supply liquidity in DeFi protocols, all while earning a risk-free return.

Unleashing the Power of Yield Generation

Yield Stream 1: The first source of yield comes from the staking of ADA. This allows users to earn a return on their staked ADA without having to sacrifice liquidity.

Yield Stream 2: The second source of yield is generated through the repayment of interest on ADA loans. By supplying ADA to the Cardano market, users can mint qADA, representing their supply balance in a tokenized form. As borrowers repay their loans with interest, the qADA-ADA exchange rate increases, enabling qADA holders to redeem for more ADA.

Yield Stream 3: Holders of qADA (and all qTokens) can earn LQ by staking their qTokens in the protocol's qToken staking contracts.

Yield Stream 4: DAO token holders who stake their LQ in the Agora governance module can earn LQ staking rewards generated from a portion of total interest repaid in the protocol.

These four yield streams do not include borrower LQ rewards. At mainnet launch, 50% of the total community distribution rewards will be earned by borrowers who lock their qTokens as collateral. This means that Liqwid users can potentially earn even more rewards by maximizing their LQ strategy

DJED coming in next week

$DJED is an overcollateralized stablecoin powered by COTI, with coverage in ADA at four times the Djed issued.

The larger role of Djed is to cater to the decentralized finance (DeFi) ecosystem on the Cardano blockchain.

COTI team is currently working on a snapshot mechanism for tracking additional rewards by the staking of ADA in Djed smart contracts. This is an exciting development for holders of ADA, as it provides an opportunity to earn additional rewards for supporting the Djed ecosystem.

Djed will play a key role in innovative DeFi strategies, making it a valuable addition to the Cardano ecosystem.

Always remember, DJED is different from Terra

Interested in sponsoring this Newsletter?

💎 Gem of the Day 🧵

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