![](https://ada.xsec.es/wp-content/uploads/2023/10/0_aD3mIz-esnmMopQt.jpg)
As we approach the launch of Djed, we believe it is important to educate more on the category of stablecoin to which Djed belongs.
According to its design, $DJED should be referred to as an overcollateralized stablecoin, and not as an algorithmic stablecoin, as also described by Shahaf in his recent video.
Here is why:
Testnet node: cot.xsec.es