Jarvis x Mt Pelerin
Introducing new EUR, GBP and CHF stablecoins
July 26th 2021
We're excited to announce today our partnership with DeFi project jarvis.network and launch their new EUR, GBP and CHF stablecoins on Bridge Wallet!
The jEUR, jGBP and jCHF (collectively jFiats) are now live in the "Currencies" tab of the app on Ethereum, in addition to the three USD stablecoins that we already support. Just like DAI, USDC and USDT, our crypto-fiat on-ramp and off-ramp are now also available for jFiats, and you can buy and withdraw them by bank transfer.
The purchases and cash outs of the first $2 million of jFiats with Bridge Wallet will be completely free of charge, whatever the amount transferred!
What are the jFiats?
These new stablecoins are what are called synthetic fiat currencies, meaning that they are not anchored to an off-chain fiat reserve. Instead, they track the price of the Euro, British Pound and Swiss franc against the price of the US dollar via a peg mechanism with USDC, one of the biggest and most trusted USD stablecoin on the market.
The interest? By being linked to the USDC and redeemable with it, they directly benefit from its vast liquidity and deep integration within the ecosystem. The jFiats don't need to build their own liquidity to be useful and usable.
The jFiats, which are also planned to launch on Polygon in the near future, carry a low risk as they are over-collateralized with USDC. A network of incentivized liquidators ensures that the assets remain over-collateralized. With a fully decentralized and open issuance process, the jFiats USDC reserve can be audited by anyone in real time, which makes them more transparent than stablecoins backed by off-chain reserves.
How are they created?
The jFiats are issued and can be exchanged on Synthereum, the on-chain Forex protocol developed by Jarvis Network.
They can be issued by a borrowing mechanism, where anyone can deposit USDC in the protocol and receive 75% of the deposit's value in jFiat. The liquidity provider receives in reward 50% of the trading fees generated on Jarvis, as well as UMA tokens.
Where can they be exchanged?
Bridge Wallet lets you buy jFiats by bank transfer, and withdraw them in 19 fiat currencies back on your bank account.
The jFiats can also be exchanged on Jarvis from liquidity providers (LPs), who allow anyone to convert jFiat between them or for USDC without any slippage (the difference between the expected price of a trade and the price at which the trade is executed), using Chainlink's price feeds.
For example, a user can sell about 85 jEUR for 100 USDC, minus the trading fees. The jFiats can also be exchanged on decentralized exchanges like Uniswap and Sushiswap, but with slippage.
The LPs are a crucial part of the protocol as they make the jFiat redeemable at their face value for tokenized US dollar, which helps them to maintain their peg.
What is Jarvis Network?
Jarvis Network is a set of protocols on Ethereum to bridge legacy and decentralized finance (DeFi). Its mission is to build an infrastructure layer for the DeFi that can be leveraged by anyone to develop use cases facilitating the adoption of DeFi, and to build applications to onboard the next billions of users. Its first protocol, Synthereum, allows the borrowing and trading of synthetic fiat currencies, enabling a fully on-chain Forex market. The protocols are governed by the $JRT holders.