There is no doubt that the stable $ 129 billion market is booming, with hundreds of different projects, each with different features and functionality. However, despite the diversity, the stable coin market is predominantly dominated by the top five projects, which account for 94% of the total market capitalization and account for 99% of the trading volume of stable coins, most of which are USD stablecoins. .
In fact, most of the stablecoins market revolves around the US dollar, which adds currency risk and friction for users who do not live in the US. Yet non-USD stablecoins can play a vital role in integrating billions of users into the crypto ecosystem and, more specifically, decentralized finance (DeFi), and, therefore, are often seen as a key driver. of user adoption. That said, non-USD stablecoins struggle to: maintain stable pricing, liquidity, and scalability, in addition to being viable, preventing them from achieving the necessary network effect to make them usable by anyone.
Unfortunately, due to the high costs to create liquid markets for stablecoins, they are generally difficult to launch and scale. To solve this chicken and egg problem, the greatest experts are turning to the Forex market.
Jarvis Network is one such platform, working to address these concerns with the launch of Synthereum, their first protocol. Synthereum is a collection of smart contracts that offers an innovative and capital efficient way to issue and trade synthetic stablecoins, called jFIAT. Synthereum enables a on-chain Forex market, leveraging Chainlink price feeds for real-time currency exchange rates, which users refer to when making Forex trades without the necessary slippage, to help jFIATs resolve market issues. liquidity and anchor for non-USD stablecoins, promoting the inclusion of other global currencies worldwide and increasing adoption of DeFi.
Referring to their mission, a member of the Jarvis team shares: âUltimately, our protocol enabling liquid and stable stable coins with on-chain Forex will be the back-end technology that underpins most portfolios whose mission is is to facilitate the user experience. “
An access ramp to liquidity
On Jarvis Exchange, users can do Forex swaps with no price impact on Ethereum (ETH) and Polygon (MATIC), although the platform has since moved to Polygon. Jarvis does this by leveraging Synthereum’s innovative issuance mechanism, which allows users to hit jFIAT with USDDC or burn jFIAT to redeem USDC at the oracle price. From the user’s perspective, this is a on-chain Forex exchange to trade any jFIAT for USDC or any other jFIAT with no slip.
Jarvis Exchange combines this no-impact on-chain Forex swap with an AMM swap to trade any jFIAT for virtually any token. This feature, called On-Chain Liquidity Router (OCLR), uses the USDC to help jFIAT access the most liquid pools on Ethereum or Polygon. Since there is no slippage when trading jFIAT and USDC, a trade between a jFIAT and another token has the same impact on the price as if it was traded directly with the USDC.
To illustrate, consider this example. Imagine that a user buys ETH with jEUR. In this case, the jEUR would be exchanged with the USDC over the Synthereum protocol. And in the same transaction, USDC would be traded for ETH on an external AMM, exploiting all the liquidity in the chain.
With this on-chain Forex, jFIATs are connected to all of the idle crypto market liquidity on decentralized exchanges on any chain through the USDC. This Forex market also guarantees the redemption of jFIAT against the Oracle-valued USDC, which helps to maintain their asset support or âanchorâ.
The team is currently relying on several partnerships, including one with Mt Pelerin, a Swiss financial entity that has entrusted Jarvis Network with launching a 1 to 1 access ramp for their synthetic asset on Ethereum and Polygon. With their non-custodial wallet, users can buy and sell synthetic assets (jFIAT) for real fiat with no spreads or fees. The team aims to launch more jFIAT on different blockchains.
Easily launch new stablecoins
The team behind Jarvis remains committed to making a user’s journey through the blockchain industry easier. Synthereum aims to be integrated into crypto wallet and crypto card projects to deliver a Revolut-like experience. Here, users could deposit their fiat into blockchains via a fiat ramp, exchange them for other stablecoins, send, receive or spend them, access cash and yield opportunities. This is in addition to exploring DeFi services such as lending or leveraged trading as jFIATs are more integrated into other protocols.
This is in addition to Synthereum’s many other use cases, including its Forex features, such as remittances and creating derivatives markets on top of it to hedge currency risks. In the meantime, the team is still focused on creating a network effect with a liquidity return and various integrations as the main focus.
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