ShenSHEN

About Shen

## What are Reserve Coins?

In simple terms, Reserve Coins are digital tokens that maintain the algorithmic peg of stablecoins. By trading Reserve Coins, users can contribute to the stablecoin mechanism by providing the appropriate liquidity to maintain a sufficient peg ratio. By utilizing a reserve, base fees can be charged, collected, and pooled for transactions facilitated by the underlying stablecoin. Reserve Coin holders then get a share of this transaction pool as an incentive for their participation in maintaining the stablecoin peg ratio.
Before the launch of Djed, we will be implementing a Reserve Coin that will serve this function of maintaining Djed’s peg and liquidity stability. We have provided some details on this below.

## What is Shen (SHEN)?

Continuing with the ancient Egyptian theme, we picked Shen as the name for Djed’s Reserve Coin. The Shen is a symbol of both royalty and symmetry. It has a deep connection with infinity, eternity, protection, and completeness given its circularity.

During our brainstorming sessions, we found this name to convey the characteristics and properties of Djed’s Reserve Coin appropriately.

By buying and selling Shen, users are able to maintain Djed’s USD currency peg while earning a share of transaction fees in the reserve pool. Since the Reserve Coin is a tradable asset, holders can also profit from the short-mid term price fluctuations as an added incentive. We look forward to providing more information as we approach the official launch.

Categories: Stablecoins, Cardano Ecosystem, Crypto-backed Stablecoin.