Before going into a more formal proposal, I wanted to gauge the interest of the PieDAO community into working with us.
Jarvis Network (https://jarvis.network/) launched a protocol called Synthereum, to issue and exchange synthetic assets without price impact. For now, we mainly focus on synthetic fiat currencies (called jFIAT) and we have launched a dozen on Polygon and a few on BNB Chain.
The particularity of jFIATs is that you can buy or sell them for their collateral (USDC) at the Chainlink price feed, without price impact. This has two consequences:
- They keep their peg (since you can redeem then for USDC at the FIAT/USDC price)
- They have the same market depth as USDC (since you can convert them for USDC back and forth).
Since we deployed jCNY (synthetic Chinese Yan) we launched a Balancer pool called SDR. But instead of doing currency indexes on our own, I remembered that we discussed doing this on PieDAO a while back in one community call I joined 2y ago!
The Balancer pool we launched contains USDC, jEUR, jJPY, jCNY and jGBP; since they can all be converted for each other without price impact on Jarvis Exchange, then arb traders can have fun arbing the pool.
So first, I wanted to gauge the interest in launching a SDR Pie on Polygon. Instead of UDSC or jEUR, we could use aUSDC and ajEUR for ex. We also have a 4eur and a 2jpy tokens (Curve pools) as well as yield-bearing moo4eur and moo2jpy tokens from Beefy but they contains less liquid and therefore more risky stablecoins.
Then, I wanted to gauge the interest in launching other thematic pie:
- low inflation / strong currency (JPY, CNY, CHF etc.)
- Regional index (Asia, LATAM, Europe)
The nature of Pies make it easy to change the parameters to follow the inflation for ex, etc.
This year we will also launch jGOLD, jSILVER etc.
Hello Pascal !
Thanks for you post ! Interesting to read !
What would those Pies bring to PieDAO ?
How do you see the Pies being used for farming or yielding ?
We have just decommissioned a USD+ farm seeing it had limited interest on the market so raising the question on a pie on other currencies ?
Looking forward to discuss more
First, marketing exposure. Having a diverse offering, especially in the current geopolitical context, where a few ppl would not want to hold USD or EUR, but would like to hold another currency; if it is a pie of currencies, then at least it would be yield-bearing thanks to arbitragers + usual traders. Ofc I do not expect these arbs to generate an immense amount of fees but it is better than 0.
Even though, on a SDR pool, with USD, EUR and CNY, volume may be a bit more important.
For farming, I am not too sure as the cost for farming will be above the fees it brings. So maybe a short-term farming program could be launched to attract liquidity but it won’t be sustainable (unless after attracting it you launch a POL program).
Then, a pie could be used as collateral on some money markets like Market.xyz (Fuse on Polygon).
Hi @pscltllrd and welcome back!
First of all, congrats on the progress with Jarvis which has been quite impressive to watch!
Being able to exchange synths without price impact for stables is very interesting, is it done by repricing debt on the collateral pool?
Regarding the proposal, I was always very fond of the idea of making an SDR product! It’s been overall nebulous to quantitatively measure demand for an on-chain version of it. How are current jFIAT tokens doing on that front? Can you share data regarding the traction of the different products?
+1 inflation pie, personally less interested in a regional currency index.
It does not work like Synthetix; it is much simpler. When you mint a jFIAT with a collateral, a LP is taking care of the over-collateralization. So if you buy $1000 of jEUR with 1000 USDC, a LP should add between 100 to 1000 USDC (depending on their risk appetite) to properly collateralize the jEUR. From the protocol point of view, LPs are CDP owners who are selling the synth, and the collateral of the CDP is the deposit of the user (1000 USDC) + the one of the LP (100 to 1000 USDC). As CDP owner, they can be liquidated.
For data: Dune
You have trading, payment, usage (transfer) data.
I think there is no demand yet for non-USD stablecoins because we do not date creating the need. We all are “happy” using USD and we got used to it. But for newcomers it is not that easy.
We mainly use our jFIAT for on and off-boarding to be honest. A stablecoins is not meant to be held apart from bear market or conservative investors; from that regard, our stablecoins are mainly used to access on-chain liquidity (EUR → jEUR → burn to redeem the USDC and swap it for WBTC for ex; or WETH → mint jEUR → EUR).
We have a few currently 7 LM: jEUR-USDC, jCHF-USDC, jGBP-USDC, 4eur (jEUR+EURS+EURT+PAR), 2cad (jCAD+CADC), 2jpy (jJPY+JPYC) and 2sgd (jSGD+XSGD) and a new one is coming (2brl with jBRL and BRZ, on BNB Chain).
So far we are happy with the result, as they all attracted ¬$1M of liquidity (4eur attracted ¬$6M) with a decent yield (10-30%).
It became more interesting after we launched our money market on Market.xyz.
Hence the idea of such PIE (SDR) would be a yield-bearing index (trading fees + incentives) that could be used as collateral to borrow other stablecoins.
No more feedbacks? The point was to gauge the interest so even negative feedback etc. is welcomed!
Tomorrow, i’ll try to guide you through an “offical” template with a vote in the forum to have a temperature check at the end
That’s ok with you ?
Would you take some time to match the structure of a proposal within PieDAO ; You can answer on this post, no need to create another one.
Here is a link to a template you can follow. Generic Proposal Gate 1 — Template (notion.so)
Based on the template, i’m missing three things for the community to vote on :
Motivation and scope : how and why to achieve + linked benefits
Benefits and risks : What does the DAO can expect ? What are the risk of doing it ? And what are the risk of not doing it ?
If the vote seems conclusive, what are the next steps ? How to build and what would it require ?
On the DAO side, if the vote in the forum is conclusive, we will initiate an official snapshot vote.
Now that the post has been long enough on the forum, don’t forget to insert a vote at the end of the forum post ! Important that now, the community votes on the way forward on this topic.