Jellyverse (JLY), a decentralized finance (DeFi) platform on the Sei (SEI) blockchain, has announced the launch of jAssets, a synthetic assets protocol that lets users mint synthetic tokens that mirror the value of traditional real-world assets (RWAs), according to the most recent report shared with Finbold on Tuesday, January 21.
The new addition will allow DeFi investors to diversify beyond standard crypto assets and gain exposure to traditional markets.
Coming in tandem is the launch of the jAssets mainnet on Sei.
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jAssets Protocol
With the jAssets protocol, users will be albe to use cryptocurrencies as collateral to issue synthetic assets such as jNVDA (Nvidia), jAAPL (Apple), jTSLA (Tesla), jMETA (Meta), and jMSTR (MicroStrategy).
Benedikt Keck, Co-Founder of BLKSWN PTE. LTD, described the potential of jAssets in regard to diversification within DeFi:
“jAssets will revolutionize portfolio diversification in DeFi by offering a range of innovative investment strategies, including long, short, and leveraged positions, which is unprecedented for these asset classes in crypto. The collateral flexibility allows users to maximize their positions, whether using wETH, wBTC, JLY, SEI, USDC, USDT, FRAX or GEM or a combination of these assets as collateral.”
– Benedikt Keck, Co-Founder of BLKSWN PTE. LTD,
The jAssets system relies on an over-collateralized model, meaning that the collateral value will always exceed that of the issued synthetic tokens.
As of now, supported collateral options include cryptocurrencies like Wrapped Ethereum (wETH), Wrapped Bitcoin (wBTC), Jellyverse , Sei , USD Coin (USDC), Tether (USDT), Frax (FRAX), and Gems (GEM), with multi-collateral troves optimizing capital efficiency.
Minimum collateral ratios range from 110% to 150%, depending on the asset.
Innovations within jAssets Protocol
To ensure price accuracy, jAssets Protocol integrates decentralized Pyth Network (PYTH) oracles and provides real-time synthetic token price feeds.
Accordingly, users on the platform can trade 24/7, avoid the risks of external trading halts, and remain in control of their investments.
Launching on the Sei Network, the fastest Layer-1 (L1) blockchain with parallelized Ethereum (ETH) Virtual Machine (EVM) compatibility, jAssets Protocol can also deliver a low-cost trading experience.
The new protocol thus helps Jellyverse bridge the gap between DeFi and traditional finance (TradFi) and reduce user reliance on cryptocurrency volatility while helping them gain exposure to RWAs.
