Imagine if you could think of a business idea and add customized DeFi into its components. This is the JGN mission. The JGN ‘j’ token series will offer unique synthetic derivatives for specific business use cases. jSKM will be the first in the series. More business use cases are being explored and will be announced very soon.
According to Coin Telegraph, the term “synthetic asset” refers to a mix of assets that have the same value as another asset. Traditionally, synthetics combine various derivative products — options, futures or swaps — that simulate an underlying asset — stocks, bonds, commodities, indexes, currencies or interest rates.
For example, rather than purchasing a stock, an investment firm may purchase a call option and sell a put option on the same stock. The use of synthetic assets here allows the firm to make use of multiple financial vehicles rather than a single investment asset.
The high-end estimate for the value of all derivative contracts is upwards of $1.2 quadrillion — a number exponentially bigger than global real estate ($217 trillion), the global debt ($215 trillion), global stock markets ($73 trillion) and the world’s supply of gold ($7.7 trillion).
On one hand, derivatives can be used to help take price risk out of a variety of assets like commodities to debt. On the other hand, derivatives can promote and exacerbate market inefficiencies, encouraging a zero-sum game among traders rather than creating true market value. The use of derivative products allows investors to earn returns without a physical settlement, arbitrage trade, transfer risk and hedge against price fluctuations.
So, why do we need customized synthetic derivatives (non-commodities)?
As previously described, most blockchain and cryptocurrency projects have failed because their business models are not sustainable and only lead to pump and dumps. Only platform (exchange) tokens (and only for a select few) and DeFi have worked as more sustainable business models due to staking and lock-in incentives.
The DeFi market is expanding every day. As of today, August 25th, 2020, there is 6.75 Billion (USD) locked in.
That means something.
JGN hopes to change the structure that we have come to know and expect from other projects and incentivize its users with DeFi rewards for powering its unstoppable network.
What is it:
JGN’s synthetic ‘j’ tokens will enable users to create, customize and modularize their business use cases into DeFi synthetics.
With ‘j’tokens, users would be able to accept, allocate and distribute profits, pay commissions, dividends and much more using custom synthetics. These synthetics will also be able to be leveraged and used within the Ethereum ecosystem, for such purposes as trading or any one of the many others available on the blockchain. Users can add liquidity and offer their custom synths to the world to buy.
These custom synthetics are just one of many synthetic assets (called Synths) that will available for trading on the JGN marketplace, a trading platform that allows anyone to access a wide variety of assets without a counterparty. Synths are backed by cryptoassets, which means they are decentralized and trustless, and liquidity is much easier because it doesn’t require a party to hold the underlying asset.
Cool Future Use Case Ideas
· Custom crowd-fund a project
o Start a project, dream it up and offer it to the world to fund and partake in its profits in a trust-less way. The JGN marketplace will do to custom synth projects that Uniswap did to the crypto industry.
· Crowdfunded fleet management
· Need to hire a group of truck drivers but you are across the country and don’t know how to confirm they will actually go where they say they will?
o Sync a JGN custom synth to their GPS. They can receive synth dividends when they arrive to their destination
· Social Media Advertising Payment System
o Enable users to watch ads or sell their data and earn synth rewards backed by USD, BTC, Gold or other custom synths.
With JGN’s custom ‘j’ series synthetics, the potential is limitless. If you can dream it, you can do it.