ZoneBitcoin EditorialJarvis Network has developed its first Synthereum protocol which allows the issuance and exchange ofsynthetic active ingredients. The protocol has thus distinguished itself by creating jFIATs which are a new type of stablecoin on the crypto market.
Although synthetic assets are still little known (and little used) in the crypto ecosystem, they have several advantages for users.
Likewise, more and more investors are looking for an alternative to stablecoins backed by dollars which are mainly used in the DeFi ecosystem. So, those who are looking for assets that are deemed more stable and want to own stablecoins representing the EURO rate, then the crypto-assets developed by Jarvis Network can be a good option.
In this article, we present Jarvis Network as well as the jEUR stablecoins. This is a first presentation article which will be followed by a tutorial focused on the possibilities of returns on jEUR.
Jarvis Network: Presentation
The company's Jarvis Network was officially launched in 2019 and was designed as a set of protocols providing the infrastructure for creating and interacting with decentralized applications. Currently, Jarvis Network is currently available on Ethereum, Polygon and Arbitrum.
The project is regularly audited by the Zellik and Hallborn agencies and it is possible to consult the audits here. This gives an idea of the seriousness of the team behind Jarvis Network.
Like any good decentralized network, Jarvis Network has provided a governance system with a DAO. Holders of the native Jarvis Reward Tokens (JRT) will then be able to stake them to participate in important network decisions. At the same time they will receive rewards in JRT tokens for the staking carried out.
The Synthereum protocol
The first protocol developed by Jarvis Network is the Synthereum protocol. The protocol allows the creation of synthetic assets. It is then possible to buy, sell and exchange them without slippage. The Jarvis network has in fact set up the Jarvis DEX on which traders can trade all synthetic assets easily.
All fiat currencies can have their synthetic assets on the blockchain. It is then possible thanks to the Synthereum protocol to:
- Create jFIATs like jCHF, jGBP or jEUR which is the most popular today. (Other assets available like jBGN, jCAD etc)
- Trade assets without slippage using the Jarvis DEX
- The possibility of generating attractive returns.
What are the advantages of jFIATs?
jFIATs have high liquidity. This means that you can exchange jFIAT for any other token, easily.
In fact, jFIATs are over-guaranteed at 125%. This means that you need collateral of 125 USDC to be able to issue 100 dollars in jFIAT. This over-guarantee can reassure investors and allows for better reliability of assets. You should know that each fiat currency is particular and has its own specificities. Thus, the over-guarantee rates will differ from one asset to another.
Indeed, as a general rule, classic stablecoins like USDC or USDT have no over-collateralization and have 100% collateral.
How to own a synthetic asset like jEUR?
To create a synthetic asset, you should know that two methods are used, namely via borrowing or via direct purchase in a liquidity pool. It is in fact the liquidity pool which will issue jFIAT for all people who wish to buy them.
Anyone can create or buy synthetic assets:
You can go to Jarvis Exchange to get your first jEUR very easily. All you need to do is connect with your metamask wallet for example or WalletConnect.
You will be able to adapt very quickly to Jarvis DEX because the interface is similar to the others DEX like that ofUniswap for example.
You will first need to have USDC or ETH to be able to purchase jEUR. You will be able to swap your tokens at a lower cost, thanks to the OCLR system.
(You can consult our ultimate guide to DeFi for beginners if you need a tutorial on the subject.)
How does Jarvis DEX work?
You should know that even if it looks like it, the Jarvis DEX is not a AMM classic. (👋 Read the article: Explanation of AMMs: Automated Marker Makers). In these, liquidity providers must deposit two tokens into the pool. However, here, with Jarvis DEX, and this is what makes it different, the liquidity pools only use a single token, placed as collateral.
This explains why there is no slippage on this DEX and that we can then control the risk. The collateral method of creating and destroying the synthetic asset actually creates the market.
To issue a jFIAT, the investor must then deposit the collateral in USDC (for example) in a pool and then borrow the asset at zero interest. To recover its collateral, the jFIATs that have been issued will then be burned.
For the resale of jEUR, it's the same process. The prices given are provided by theChainlink oracle. The collateral is then burned and the user can recover their collateral in USDC.
This makes it possible to exchange jFIAT for any other asset without having to undergo slippage in on-chain Forex. This mechanism is called OCLR (On-Chain Liquidity Router) and you can find out more about the process here.
What are the ecosystem integrations and partnerships?
Jarvis Network has collaborated with many Decentralized Finance networks, here are some of the most popular projects:
Jarvis Exchange : This is the protocol that allows you to buy and resell jEUR against USDC. You can connect with your metamask wallet and choose the network of your choice: Ethereum, Polygon or even Arbitrum. In the future, other networks will be deployed.
Verso Wallet : The Verso wallet allows you to earn cashback in cryptocurrencies when you shop online. So, now users can convert their cash back to jEUR.
Mt Pelerin Bridge Wallet: MrPelerin is a crypto company based in Switzerland which very quickly integrated jFIAT into the Bridge Wallet, a non-custodial and multi-chain wallet, and thus allow users to buy or sell jFIAT against FIAT (euro, Swiss franc) via bank transfers.
Market : The marketplace is a permissionless money maker that allows users to lend, borrow, or use jFIAT as collateral.
Request Finance : allows individuals and organizations (companies, DAOs, institutions) to pay and be paid in jEUR. The platform offers a suite of tools to manage invoices and payroll in jEUR in a simple way.
How to generate returns on your assets?
This is definitely the option that can attract new people to consider Jarvis and synthetic assets. It is indeed possible to generate returns.
These latter come from trading commissions made on liquidity pools and via the services of Yield farming.
It is indeed possible to become a liquidity provider on the Beefy platform for example. We will see in a dedicated article how to generate returns on jEUR.
What is the JRT token?
JRT is the native token of Jarvis network which then allows holders to be rewarded. You should indeed know that JRTs can be staked to secure the network and provide incentives to holders at the same time.
When JRTs are staked, holders receive a portion of their deposited srJRT tokens which can then be used to participate in governance or earn rewards in other related programs. You should know that it will also be possible to use these tokens as collateral in order to borrow jFIAT.
However, at the time of writing this article, the JRT token has not been fully deployed to be able to do staking for example. This is also a point that the supporters of the project's early days naturally regret...
How to obtain the JRT token?
Today, the JRT token, with a market capitalization of 324 EUR, the token is in #099th place on Coinmarketcap. The low market capitalization is explained by the fact that the token, as we said, has not yet been deployed for incentives.
However, it is possible to buy JRT token on centralized platforms such as CoinEx or AscendEX. On decentralized platforms, it is possible to buy JRT on Bancor Network or on OpenOcean. To find the best price you can use paraswap also.
The address of the token is: 0x8a9c67fee641579deba04928c4bc45f66e26343a and you can check and copy and paste the address on the JRT token page on Coinmarketcap.
What are the differences between classic stablecoins and Jarvis assets?
Unlike stablecoins likeUSDC or USDT which are backed by real economy assets, synthetic cryptocurrencies like jEUR exactly reproduce the behavior of the asset. They do not have backups in reserves only but they reproduce the assets on a blockchain.
Created on a blockchain, they are then accessible, transparent and democratic. Synthetic assets are then decentralized unlike classic stablecoins which are for the vast majority issued by centralized companies.
The biggest problem with stablecoins is the risk of depeg and loss of value. This can happen as the infamous case of theUST…(See Luna's massacre)
The other problem is the lack of liquidity. For example, few people use euro stablecoins at the moment precisely because they lack liquidity. We also know that this can happen to tokenized stablecoins.
The jFIATs are over-guaranteed withUSDC. However, the risk is not zero. We could see a slight drop during the depreciation of the USDC, recently, during the bankruptcy of the Silicon Valley Bank. So, inevitably jFIAT is highly correlated to the USDC price. However, USDC remains one of the most “stable” and reliable stablecoins in the industry.
What challenges does Jarvis Network face for expansion?
For people looking for alternatives to classic stablecoins or looking to use euro stablecoins, jEUR synthetic assets can be a good alternative. The liquidity problem is also reduced with synthetic assets and removing slippage has made stablecoins very practical. This is also why Jarvis is particularly appreciated in Venezuela, a country experiencing high inflation.
Jarvis Network's ambition is laudable and can attract new users to DeFi. The fact of also having established relevant partnerships like the one established with MtPelerin is therefore very interesting. It is then possible to own jEUR by paying directly in FIAT. The process is then greatly facilitated. Likewise, the network continues to develop new partnerships as with RamsesExchanges on Arbitrum. This is then a very good sign that the team is sending to the community.
However, the challenge facing Jarvis Network is not obvious and is all the more difficult in a period of bear market that we were currently going through. Likewise, the synthetic active ingredients are still not popular and little used in the crypto ecosystem, which then reduces the adoption rate for Jarvis.
We believe, however, that over time, synthetic assets as well as stablecoins such as jEUR will find an ever larger audience.
—>Discover the official Jarvis website Network
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Please note: : No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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