jAssets by BLKSWN

The jAsset protocol is a community project that has not yet been confirmed by the Jellyverse DAO.

Overview

jAssets is a collateralized debt platform. Users can lock up collateral (specific ERC20 tokens, selected by the governance) and issue jAssets (jUSD, jAAPL, jTSLA, etc.) to their own address and subsequently transfer those tokens to any other address. The individual collateralized debt positions are called Troves.

The jAssets are economically geared towards maintaining their underlying oracle value (peg) due to the following properties:

1. The system is designed to always be over-collateralized - that means the dollar value of the locked collateral exceeds the dollar value of the issued jAssets.

2. The jUSD is fully redeemable - users can swap $x worth of jUSD for $x worth of collateral tokens (minus fees) directly with the system at any time.

After opening a Trove, users may issue ("borrow") tokens such that the collateralization ratio of their Trove remains above their individual minimum collateral ratio (IMCR). The IMCR is calculated based on the Trove's collateral but will be at least 110%.

The tokens are freely exchangeable - anyone with an EVM address can send or receive jAsset tokens, whether they have an open Trove or not. The tokens are burned upon repayment of a Trove's debt.

The jAsset system uses price feeds from the decentralized pyth.network oracle provider. When a Trove falls below its IMCR, it is considered under-collateralized and is vulnerable to liquidation.