Lending and borrowing jFIATs on Midas
We are delighted to announce that jBRL, our Brazilian Real (BRL) stablecoin, and 2brl, the Ellipsis Finance jBRL-BRZ LP token, have been integrated to Midas, a money market on the BNB Chain. Starting from today, users can take advantage of the Jarvis jFiat pool with a wide variety of functionality such as: lend various assets, collateralize LP positions while continuing to earn LP rewards, and borrow various assets.
Midas Capital
Midas Capital is a new permissionless money market on the BNB Chain. Midas is the cross-chain implementation team of Rari Capital’s Fuse pools and is fully supported by the Tribe DAO ecosystem. With Midas Capital’s Fuse pools, anyone can create customized and isolated pools for lending and borrowing of any asset!
The isolated model helps contain the risk of assets within the pool and not the broader protocol, which allows the onboarding of riskier assets compared to the allowable assets in traditional money markets.
Tokenized vault
Midas allows users to deposit yield-bearing tokens and LP positions into the pools so that users can continue to earn yield or LP rewards while still using them as collateral.
This improves capital efficiency and allows a user to earn yield while borrowing against their collateral, thus offsetting the cost of their loans.
This is enabled by the ERC-4626 tokenized vault standard which deposits these assets into a tokenized vault within the Fuse pool, which then gets deposited into a yield-generating staking module.
Jarvis jFIAT pool
Midas has launched a new isolated market, the Jarvis jFIAT pool, with jBRL and 2brl tokens, enabling powerful use cases!
Lend to earn interest!
Users can earn interest on their jBRL, BUSD, BNB, and ETH by depositing them into the pool!
Once deposited, these assets can also be used as collateral for borrowing.
Borrow for multiple use cases!
Users can deposit collateral and borrow jBRL, BUSD, BNB, and ETH. This enables a few use cases:
- Shorting: users can deposit BUSD and borrow jBRL and sell them back for BUSD on jarvis.exchange; this allows for short on BRLUSD. They could repeat this multiple times leveraged short BRLUSD.
- Leveraged long: users can deposit jBRL and borrow BUSD and sell them back for jBRL on jarvis.exchange, and repeat the process; this enables leverage leveraged long on BRLUSD.
- Leveraged farming: users can deposit ETH, or BNB, and borrow jBRL to invest in the 2brl pool; this allows them to keep their exposure to the price of ETH or BNB, while unlocking their liquidity to generate yield.
- Off-ramping: users can also borrow jBRL to swap it for BRZ and off-ramp it using various fiat off-ramps such as BitPreco.
By depositing the 2brl LP token inside Midas’ tokenized vault, users can use 2brl as collateral whilst the token is deposited into DotDot Finance and earn yield. This allows for very powerful use cases:
- Looping: users can deposit 2brl, earn yield, borrow jBRL and deposit them into the 2brl pool, and repeat the process multiple times; this loop enables high leveraged farming; because the collateral and the loan are both denominated in BRL, there is very small liquidation risk.
- Hedged and leveraged farming: users can buy BRZ with BRL, or jBRL with BUSD, and deposit them into the 2brl pool; they can then deposit the 2brl LP token into Midas’ tokenized vault, and borrow jBRL; they can then off-ramp them or sell them back for BUSD; this allows to farm with just a portion of the initial capital, at a high leveraged yield.
jBRL Money Printer
We have recently launched the Money Printer, a contract to mint uncollateralized jFIATs and deposit them directly into a money market. This enables to supply of a large amount of liquidity to meet the demand whilst maintaining low-interest rates; eventually, it also generates additional revenue sources for the treasury.
We plan on using it to mint uncollateralized jBRL and deposit them into Midas. Until they remain in the pool, these jBRLs are not collateralized. Since borrowing requires depositing collateral, when these jBRLs are borrowed, they become defacto over-collateralized.
Therefore, circulating jBRLs are always backed by collateral locked in our protocol or in Midas.
Only the governance can mint jBRL through this method, and jBRL can only be deposited within whitelisted smartcontracts.
About Midas Capital
Midas Capital is a DAO within the Tribe DAO ecosystem, bringing Rari Capital’s Fuse pools to EVM-compatible blockchains. Fuse is a permissionless money market that allows anyone to create customized and isolated pools for lending and borrowing any asset. Pool creators have the flexibility to modify various parameters (interest rate curves, oracles, collateral factors, etc.) according to their risk appetite.
About Jarvis Network
Jarvis Network is a set of protocols and applications on EVM-compatible chains to bridge legacy and decentralized finance (DeFi). Its mission is to build an infrastructure layer 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, pioneers an innovative and capital-efficient manner to issue and exchange synthetic fiat currencies called jFIATs, thanks to a fully on-chain Forex market. jFIATs are stablecoins designed to be usable: they keep their peg, are highly liquid, and are scalable.
