Tron Launches Djed, A System For Collateralized Loans

On March 28, the Tron news showed that the foundation behind the TRX cryptocurrency officially launched a new project which looks very similar to MakerDAO. Tron launches Djed, a platform that is meant to help with collateralized loans and was described by Justin Sun (the founder and CEO of Tron) as “something new.”

Many people criticized this platform on the Internet. It all started when Sun teased the launch on January 16 this year, when he let his fans choose the name of a planned decentralized stablecoin which was initially meant to be backed by TRX and the BitTorrent Token (BTT).

The self-described TRX whale and Tron fan Mike McCarthy was the one who proposed the name Djed, hours after Sun’s official tweet. The name, as he said, is drawn from an ancient Egyptian word and represents the concept of stability.

How about "Djed"?

It's an ancient Egyptian symbol for stability and with a deeper meaning of a firm footing, immutability and permanence.

Djed is the symbol in the centre. And if you think it looks like a pillar, that is because it is 😆 pic.twitter.com/6WqQZiKyJx

— Mike McCarthy (@MikeNerdUK) January 16, 2020

As Tron launches Djed, we can see that the platform is live under the Tronscan.org domain and shows an interface which has plenty of similarities to several Maker-based websites such as Oasis.app, vote.makerdao.com, cdp.makerdao.com and others.

However, while Djed’s interface is still a bit modified, the system itself appears to be a clone of the old Single Collateral DAI for Maker. The principle is the same, though Tron users will be committing TRX collateral to mint USDJ instead of DAI. The governance token is called JED (instead of MKR).

The cryptocurrency news show that even without looking at Djed’s code, we can see that the platform resumes a lot of the terms used within Maker. Djed is a lending platform that is using Collateralized Debt Positions (CDP) where users must pay a Stability Fee as an interest rate on their loan, decided via an Executive Vote helped by assessments of Djed’s Interim Risk Team.

All of these terms are used to describe the MakerDAO features, too. Even though there are superficial similarities, the smart contract code further nails down and shows that as Tron launches Djed, it is a system that practically resembles a clone of Single Collateral DAI.

Even though there is no official source for this, contract calls on Djed have the same names as Maker’s too – some of these are named SaiProxyCallAndExecute, DaiFab, MomFab, DadFab and many others.