The Money Market & Synthetic Stablecoin platform.
Key Features:
● Borrow cryptocurrencies and stablecoins with no credit check and fast origination directly on Binance Smart Chain.
● Supply cryptocurrencies and stablecoins and earn a variable APY for providing liquidity the protocol that is secured by over-collateralized assets.
● Mint stablecoins from your supplied collateral that can be used at over 60 million locations worldwide through Decentralized platform and more.
● Controlled by the Juice Token, a governance token designed to be a fair launch distribution for the community.
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Supplying Assets
Juice Protocol users may supply various supported cryptocurrencies or digital assets on to the platform, which can be used as collateral for loans, supply liquidity and earn an APY, or to mint synthetic stablecoins.
Supplying assets such as cryptocurrencies or digital assets to Juice gives the users the ability to participate as a lender while maintaining the security of collateral in the protocol. Users will earn a variable-based interest rate depending on the yield curve utilization of that specific market. All user assets are pooled into smart contracts so that users can withdraw their supply at any time, given that the protocol balance is positive.
Users who supply their cryptocurrency or digital asset to Juice will receive a Juice Token, such as rBTC, which is the only token that can be used to redeem the underlying collateral supplied.
This will enable users to use these tokens to hedge against other assets or move them into cold storage wallets that support Binance Smart Chain.
Example: Depositing Collateral
Example: Withdrawing Collateral
Borrowing Assets
Users who want to borrow any of the supported cryptocurrencies, stablecoins, or digital assets from Juice must pledge collateral that will be locked on the protocol. These assets must be over collateralized and will enable up to 75% of that collateral value borrowed. These collateral ratios are determined by the protocol and are controlled through the Governance process, which is documented in this Whitepaper.
Once these assets are supplied, you can borrow based on the collateral ratio of the asset.
Typically, collateral ratios are set anywhere from 40% to 75%. For example, if Bitcoin has a collateral value of 75%, that means you can borrow up to 75% of the value of your BTC. If the user has $100,000 in BTC supplied to the Juice Finance protocol, that means they can borrow up to 75% of the value. However, if a user’s collateral value drops below 75%, or whichever collateral ratio percentage that a certain asset has, it could cause a Liquidation event, which will be discussed later.
Users will have a compound interest rate that will be applied per block on these assets and have no monthly payment obligations. To return the collateral, the user must pay off their origination balance and compounded interest back to the protocol.
Market interest rates are determined by the specific yield curve that is designated in the contract. Depending on the market utilization, it will determine what the interest rate will be for that specified market.
Example: Borrowing on supplied collateral Synthetic Stablecoins
The Juice Finance Protocol, to start, will enable users to mint JUICE DOLLARS (JUSD), a synthetic stablecoin based on the price of $1 USD, by using the Juice Tokens (JUICE) from the underlying collateral that they have previously supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their Juice Tokens (JUICE) to mint JUSD.
Stablecoins on the Juice Finance Protocol can be synthetically designed through Governance and added as a proposal. JUSD will be the protocol’s default stablecoin that can be minted by collateral already pledged in Juice.
These stablecoins will not have yielded curves that determine their interest rates, which in other protocols are known as stability fees. Interest rates will be determined by the Governance process within the Juice Protocol.
Pricing Mechanisms
Since no underlying fiat reserves are guaranteeing the value of the synthetic stable coin on the Juice Finance Protocol, it will rely on market forces, the basket of collateral, and safety mechanisms to maintain its peg to the fiat currency it is designed to synthesize. As an example, JUICE DOLLARS will originally maintain a peg of 1:1 per JUSD: USD.
The market is encouraged to maintain this peg so that programmatic mechanisms designed to protect the peg will not be initiated by the protocol.
If there becomes a point where JUSD or another synthetic stable coin loses its peg value, the protocol can use the Governance process to initiate the Price Adjustment Module. This module will enable the change of parameters within the stable coin system on Juice to dis-attach the peg and create a change in supply and demand to bring the stability back to its original peg.
This system will enable two main points. A benefit to hold/buy a synthetic stable coin, or mint/borrow a synthetic stable coin. This is determined whether the price peg has become negative or positive due to external market conditions.
Stablecoin Parameters
Users who have the protocols native tokens can create proposals to change specific parameters of the synthetic stable coins on the platform by utilizing the on-chain Governance system. These parameters are set up from a protocol-risk perspective to protect the interest of the users and the platform. The parameters that users can control are the following:
● Max Supply: This determines the maximum number of synthetic stable coins units can be minted at any given point to determine the synthetic stable coins maximum supply.
● Interest Rate: The interest rate parameter controls how much in interest fees the user pays for minting these synthetic stablecoins.These interest rates go directly into the Reserve Factor community funds.
● Collateral Ratio: Each synthetic stablecoin will be a liquidation price. These liquidation prices are controlled by the Collateral ratio for each synthetic stablecoin.
● Penalty Ratio: If a liquidation occurs, there will be a penalty percentage you must pay the protocol. This penalty ratio is set by the protocol.
Stablecoin Redemption
Synthetic stablecoins on the Juice Protocol are created by supplying and locking a single or basket of cryptocurrencies. Users can redeem jUSD for other assets by trading with them in the Trust Wallet platform. jUSD is exchangeable to all supporting assets, including USD, which can be redeemed directly to your bank account for verified users.
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