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JUSD is a stablecoin developed by the JOJO system to support multi-collateralization. This feature allows users to use other non-stablecoin assets (BTC, ETH, etc.) as a margin for trading. JUSD works like DAI and users can mint JUSD by staking other ERC20 tokens as collateral.
Usually, if you want to open a position on a perpetual contract platform, you can only choose a few stablecoins to trade with. Suppose you only have BTC, ETH, UNI, or other valuable assets. In that case, you can only mortgage your assets on lending platforms to borrow stablecoins with a high-interest rate.
JOJO has streamlined the outdated lending steps, waived the borrowing fee, and integrated the entire lending process into JOJO's trading system.
Now, you can quickly place a zero-interest order with just a few simple steps.
Just like other over-collateralized stablecoins, JUSD is minted by users staking JOJO platform-allowed ERC20 non-stable tokens (BTC, ETH, and ARB) according to JOJO's initial ratio to obtain corresponding JUSD value. JOJO's initial ratio and liquidation ratio are formulated based on JOJO's predictions on the price fluctuations of non-stable tokens and the platform's ability to pay. The price of non-stable tokens is provided in real-time by Chainlink. Currently, the lending cap of JUSD is 100,000 USDC.
Initial ratio: The ratio of JUSD that users can obtain by staking non-stable tokens. The price of non-stable tokens is provided in real-time by Chainlink.
Liquidation ratio: Because of JUSD's over-collateralization mechanism, traders will be liquidated when the value of non-stable tokens staked by users is less than the value of borrowed JUSD. The price of non-stable tokens is provided in real-time by Chainlink.
The price of collateral will fluctuate with the market, in order to ensure that the collateral deposited will not be liquidated, users need to return JUSD in time. There are two ways to repay JUSD:
- Transfer JUSD from the JOJO system to repay it.
- Buy JUSD directly in the market through USDC then repay it.