On the Djed FAQ page it says under future plans:
We are planning on adding other coins as collateral, in addition to ADA. We envision wrapped BTC, and wrapped ETH, all on Cardano, to be used to mint DJED.
I see the following issues:
- Increased complexity
- Increased bridging risks
- Reduced demand for Ada backing (ie. less positive for Ada)
- This design was not what was proved stable by the Djed research paper
The increased risks and complexity particularly concerns me.
- Will users be able to select what particular backing token they receive when they send Djed back to the contract?
- Or will they receive all three tokens in the proportion currently held by the contract?
- If they allow you to select what token you want back then what will happen if only wrapped BTC and wrapped Eth remain but you want ADA?
- Also what effect could this have on Djed maintaining it’s peg if people notice that the Ada backing is draining relative to the wrapped crap which has much less utility on Cardano? People may quickly send back their Djed in order to get the last Ada before it runs out leaving only the wrapped aliens.
This seems like a really bad future plan by Coti. It seems like a way to kneecap Djed.
I really hope that this FAQ answer by Coti was due to some website designer getting a little over excited and making a “typo” mistake.