JOJO.Exchange
  • JOJO EXCHANGE
    • 🔍Overview
    • 🚀Roadmap
    • 📣Announcement
      • 🛠️JOJO Exchange Upgrade to v2
      • 🤖Unlock Exclusive Rewards and AI-Powered Trading – The Future of DeFAI Awaits!
      • 🤝Transforming DeFi With Chainlink and Lido
      • 🪂JOJO's Airdrop Season 2!
      • 🎰Introducing Our New Mini-Game: Slot Machine!
      • 🪂Airdrop Season 1 claiming portal is ON!
      • 🤖JOJO is Integrating Chainlink Data Streams to Power Its Silicon-Based AI Exchange
      • 💡Upgrades to Chainlink Data Streams
      • 🪂JOJO's Airdrop Season 1!
      • 🍭You can now claim the reward for the 7-Day check-in Challenge!
      • ❗Notification of Environment Removal
      • 🪂JOJO's Airdrop Season 0!
      • 🪙New listing: WIF/USDC, ENA/USDC, CKB/USDC, BOME/USDC, W/USDC, ETHFI/USDC, ONDO/USDC, and DOGE/USDC
      • 🔖Fee Discount Notice
  • v2 product guides
    • 🧐Tutorials
      • How to Connect Wallet & login?
      • 💰Deposit & Withdraw
      • 📈How to trade Perpetual?
      • 📈How to Close a Position?
      • 📈What is a Limit Order, and how to place it?
      • 📈How to Place a TP/SL Order ?
      • 🕹️How to trade 1000X ?
    • 🤷FAQs
      • ❔How much leverage will be available on JOJO?
      • ❔Is there a deposit fee or withdraw fee on JOJO?
      • ❔What Happens When a Market Is Delisted
      • 📖How to Set Email
      • 📖What is PnL and How to Calculate It?
      • How to bridge assets to Base
      • 📖How to Swap USDC ?
  • 💵Fees
  • ⚖️Funding Rate
  • 💸Liquidation
  • 🔑API Keys
  • v1 Product guides
    • 🧐Tutorials
      • How to Connect Wallet & login?
      • 💰Deposit ,Transfer & Withdraw
      • 📈How to trade Perpetual?
      • 📈How to Close a Position?
      • 📈What is a Limit Order, and how to place it?
      • 📈How to Place a TP/SL Order ?
      • 👤How to use Sub Account?
      • 📈One-click Trade
      • 🕹️How to trade 1000X ?
      • 💰How to get JOJO airdrops?
      • 💰How to stake JOJO and get veJOJO?
    • 🤷FAQs
      • ❔Will there be more trading pairs in the future?
      • ❔What collateral does JOJO accept?
      • ❔How much leverage will be available on JOJO?
      • ❔What is One-click Trade and How does It Work?
      • ❔Is there a deposit fee or withdraw fee on JOJO?
      • ❔Why Trading on JOJO is Safe?
      • ❔Why do I keep receiving risk warning emails from JOJO?
      • ❔What Happens When a Market Is Delisted
      • 📖How to Set Email Notifications
      • 📖What is PnL and How to Calculate It?
      • How to bridge assets to Base
      • 📖How to Swap USDC ?
    • 🤖Ai Revolution
    • 📖Glossory
    • ✨Trading Pairs
    • 💵Fees
    • 🤑Prices
    • ⚖️Funding Rate
    • 💸Liquidation
    • 🤖Grid Bot
    • 🤩1000X Trading
    • 📪Sub Account
    • 🧑Referral Program
    • 🔰Multi-collateral system
      • Leverage your earning with mUSDC!
    • 🧲Flexible Earn
    • 🔐JOJO airdrops and staking
  • Smart Contract
    • 🎯Contract Addresses
    • 🕵️Bug Bounty & Audit
  • JOJO TOKEN
    • 📊Allocation
    • 🔒Token Economy
  • Arbitrum Alpha Test
    • 🤝Sunset Plan
    • 🎯Contract Addresses
    • ⚗️STIP
    • 🎙️Announcement
      • 🪙JOJO has listed WLD/USDC, AGIX/USDC, AR/USDC, STRK/USDC and 13 new trading pairs!
      • 🧰Notice of Legacy Network Decommissioning
      • 🧰Smart Contract Upgrade Announcement
      • 🔧Maintenance Notice
      • 🔮BIG UPDATE of JOJO's Bizarre Adventure: all points earned x 100!
      • 🪙JOJO has listed MEME/USDC!
      • 🔮JOJO's Bizarre Adventure Event is now alive!
      • 💰New collaterals: ARB!
      • 💰New collaterals: wstETH and GMX!
      • 🪙JOJO has been listed ARB/USDC, SOL/USDC, and LINK/USDC!
      • 🔖Notification of Environment Removal
  • LEGAL
    • Risk Reminder
    • Terms of Use
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On this page
  • How Does Multi-collateral System Work?
  • Liquidation
  • JUSD Floating Rate
  • JUSD Borrow Limitation
  • JUSD for dedicated market maker
  1. v1 Product guides

Multi-collateral system

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Last updated 7 months ago

How Does Multi-collateral System Work?

JOJO uses USDC as the settlement currency, but you can also use other assets as collateral. Specifically, this is a credit issuance system similar to DAI, where you can borrow out JUSD by over-collateralizing assets such as ETH. And JUSD is considered to have equal value to USDC within JOJO's perpetual contract trading system.

Although you trade using JUSD, profits and losses are still settled in USDC. This means that if you make money, you can withdraw it in USDC. If you lose money, your JUSD will be locked until you repay the debt with USDC.

JUSD is designed to always be equivalent to 1 USDC within JOJO's trading system, ensuring stability and reliability for users.

Liquidation

When the value of your collateral decreases, you will face liquidation.

Initial ratio: If the value of your collateral multiplied by its corresponding initial ratio is less than the JUSD you have borrowed, you will not be able to borrow more JUSD.

Liquidation ratio: If the value of your collateral multiplied by its corresponding initial ratio is less than the JUSD you have borrowed, you will be liquidated.

Non-stable tokens
Initial ratio
Liquidation ratio

cbETH

70.00%

82.50%

WETH

70.00%

82.50%

pumpBTC

70.00%

82.50%

earnUSDC

90.00%

97.00%

AERO

65.00%

75.00%

mUSDC

90.00%

95.00%

DEGEN

50.00%

70.00%

wUSDM

90.00%

95.00%

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.

The liquidation occurs on-chain and is open to anyone without the need for permission. The system will sell collateral at a discounted price for USDC.

It's important to note that the liquidation process for the multi-collateral system operates independently of the perpetual futures trading system. Therefore, while your multi-collateral assets may be subject to liquidation, your futures positions will remain unaffected.

JUSD Floating Rate

Maintaining a secure platform is our top priority and JUSD uses a special floating exchange rate to achieve that. This system adjusts automatically in response to redemption pressure, ensuring the overall stability of JUSD

Definition

  • USDC debt = The sum of the maximum amount of USDC that all users can withdraw (exclude insurance fund)

  • USDC inventory = The amount of USDC in the Dealer Contract

  • USDC redemption pressure = USDC debt / USDC inventory - 1

JUSD interest rate curve simulation

  • If redemption pressure ≤10%, interest rate = 0%

  • If 10% < redemption pressure ≤25%, interest rate = redemption pressure

  • If redemption pressure >25%, interest rate = redemption pressure * 2

The backend is actively triggered and adjusted once a week. If the JUSD interest rate changes by more than 5%, it will be adjusted immediately.

The interest generated by JUSD will be used entirely for the insurance fund.

JUSD Borrow Limitation

Regardless of collateral amount, the borrowing limitation is capped at 100,000.00 JUSD for each user. And the platform borrowing limitation is capped at 1,000,000 JUSD

JUSD for dedicated market maker

For dedicated market makers who have completed KYC, JOJO also supports the use of funds from centralized exchanges as collateral to mint JUSD on JOJO to help provide liquidity. If you want to become a dedicated market maker, please contact jotaro@jojo.exchange.

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