Tron (TRX) founder Justin Sun tweeted to announce the release of Djed, a system that he described as “something new” for collateralized loans. The platform was immediately criticized as many view it as a plagiarized version of MakerDAO (MKR).
On January 16, Sun teased the launch when Sun let his fans choose the name of a planned decentralized stablecoin that was originally supported by TRX and BitTorrent Token (BTT).
Mike McCarthy, self-described TRX whale and Tron fan, was the one who proposed the name Djed, only one and a half hours after the initial tweet from Sun. The name is taken from ancient Egypt, and represents the stability concept.
“Borrowing” Dai’s concepts
The Djed platform is live under the domain of Tronscan.org, and displays an interface with similarities to several Maker-based websites, including Oasis.app, vote.makerdao.com, and others.
But while Djed’s interface remains reasonably modified, the system itself appears to be a clone to Maker’s old Single Collateral Dai. The principle is the same, though users of Tron will commit TRX collateral to mint USDJ, rather than Dai. The token of governance is named JED, rather than MKR.
The platform even resumes many of the terms used within Maker without looking at the code.
Djed is a platform for lending using the Collateralized Debt Positions(CDP). Users are required to pay a Stability Fee as an interest rate on their loan which is decided through an Executive Vote assisted by Djed’s Interim Risk Team assessments.
All those terms are also used to describe the features of MakerDAO. Although these are superficial similarities, the smart contract code goes on to nail down that Djed is a single collateral Dai clone.
Although the source is unavailable, Djed’s contract calls have the same names as Maker’s: SaiProxyCallAndExecute, DaiFab, MomFab, DadFab and many more.
Crucially, the Sai name suggests that this is indeed the old version of Dai, as it was renamed to Sai after the introduction of multiple forms of collateral. It also would explain why Djed only allows TRX tokens for collateral, instead of the promised BTT.
However, copying and implementing open-source code separately is not necessarily considered a plagiarism in general. Tronscan has yet to claim that its implementation is unique or that it has been developed in-house.
Nonetheless, one wonders how the Tron community in decentralized finance plans to catch up with Ethereum if it simply retraces its steps — just over two years later.