🤝Transforming DeFi With Chainlink and Lido
Last updated
Last updated
JOJO is excited to announce a new integration with Lido and Chainlink, bringing new capabilities to the DeFi space. Through this integration, JOJO now supports wstETH—an interest-bearing token from Lido—as collateral, powered by Chainlink Data Streams for real-time price feeds. This integration marks a significant advancement in how users can utilize their assets in decentralized finance.
Lido’s wstETH, which represents staked ETH, now has a new utility on the JOJO platform. With this integration, wstETH holders can trade perpetual futures on JOJO while still earning staking rewards from Lido. This dual functionality offers a unique advantage: users can actively participate in trading without losing the benefits of their staked ETH, effectively combining yield farming with active market engagement.
For Lido, this integration greatly expands the use case of wstETH. It allows holders to leverage their assets in more dynamic ways, enhancing the appeal and utility of wstETH beyond just staking rewards. By enabling wstETH to be used as collateral on JOJO, Lido attracts a broader user base interested in both staking and trading, thus boosting liquidity and engagement with their ecosystem.
The role of Chainlink in this integration is crucial. By providing on-demand access to high-frequency market data backed by decentralized, fault-tolerant, and transparent infrastructure Chainlink Data Streams ensures that JOJO can offer secure and highly advanced collateral management. This capability not only enhances the platform's functionality but also demonstrates how Chainlink's robust infrastructure supports innovation in DeFi, enabling projects like JOJO to offer novel financial products.
On JOJO, users now have the flexibility to decide how much credit they want to generate using their wstETH, which is converted into JUSD on the platform. This unique approach mitigates the risk of forced liquidations, unlike traditional exchanges that may quickly liquidate user assets during market downturns. Instead, JOJO provides users with the ability to manage their positions more effectively, giving them time to add collateral and avoid unwanted liquidations.
The integration of wstETH as collateral on JOJO does not increase risk for wstETH holders. In fact, it enhances risk management across multiple collateral types, offering a more adaptable framework that benefits all users. This careful balance of flexibility and security positions JOJO as a leader in the perpetual DEX space on Base.
The integration between JOJO, Lido, and Chainlink is a prime example of how composability can drive meaningful innovation in DeFi. By combining JOJO's advanced trading platform, Lido's versatile staking solutions, and Chainlink’s low-latency Data Streams, we are creating a more dynamic and secure DeFi ecosystem. These integrations offer users unparalleled opportunities to maximize their assets’ utility, showcasing the true potential of decentralized finance.
Join us as we continue to redefine the possibilities of DeFi with JOJO, Lido, and Chainlink.
