PLAAS: Interconnection of Mining Pools in Cross-Chain Forex Markets

Author: Jarvis Network

Compiled by: ChainCatcher

This article is the third in a series of four related to our PLAAS program.

In previous articles, we have seen that the PLAAS program brings a lot of value to protocols, stablecoins, and end users.

But we have only scratched the surface of the possibilities! In this article, we will explore how the mining pools in PLAAS are actually interconnected to create a cross-chain, capital-efficient, and low-slippage on-chain forex market.

Since jFIAT can be converted between them without slippage, Curve pools containing jFIAT can be interconnected. In this case, Jarvis acts as the forex trading layer: for example, to exchange EURS for fxAUD, an aggregator like Paraswap will use the following routing:

Since there is no slippage between jEUR and jJPY, and the slippage between EURS and jEUR as well as between jJPY and JPYC is very low (when the pools are balanced), Jarvis and Curve can achieve low slippage and capital-efficient forex swaps and crypto-supported stablecoins between fiat supports.

Jarvis and Curve can become the invisible pillars of stablecoin liquidity! Users will exchange one stablecoin for another without knowing they are interacting with these protocols.

Fiat-backed stablecoins are great for domestic payments, but their lack of liquidity complicates remittance use cases! Since all these fiat-backed stablecoins have effective fiat in-and-out channels, connecting two of them through the aforementioned on-chain forex infrastructure creates a way to transfer funds internationally through instant settlement!

For example, users in Canada can purchase CADC at a 1:1 ratio with CAD. CADC is a fiat-backed Canadian dollar stablecoin issued by Paytrie. The 2CAD (jCAD-CADC) and 2jpy (jJPY-JPYC) Curve pools can help facilitate transfers from Canada to Japan and vice versa, following this route:

This is one of the use cases that led us to launch some African stablecoins like jNGN and jXAF/jXOF! For instance, there is already an NGN stablecoin on the Binance Smart Chain with an effective fiat in-and-out (NGNT); pairing it with jNGN on an AMM like Ellipsis, which is similar to Curve, will allow for the transfer of funds between Nigeria and Canada, Japan, Singapore, or the UK.

Companies willing to compete with Transferwise can open accounts with Paytrie and JPYC to receive Canadian dollars from customers in Canada and send yen to recipients in Japan using these routes on the backend.

Of course, users can leverage the 1:1 fiat in-and-out ramp of jFIAT to execute international and cross-border payments.