The JRT-ETH-KPI options jointly launched by Jarvis Network and UMA increase liquidity on Polygon

Author: Jarvis Network

Compiled by: ChainCatcher

Jarvis Network and UMA have teamed up to launch a new KPI option to help increase the liquidity of JRT on Polygon!

In 2019, we began researching Synthereum v0, and we were the first protocol built on the UMA protocol. Utilizing their framework, we launched the first jFIAT on Ropsten in February 2020.

The first jFIAT was over-collateralized by rDAI…

With the upcoming release of UMA v2, we have restructured the code to fit the new version of the protocol. Today, DVM has approximately $8 million on Ethereum and Polygon's Synthereum v1 and is about to be used for our new collaboration: JRT-ETH-KPI option!

UMA's KPI options are token-collateralized options. On the expiration date, if certain conditions are met, holders can redeem a certain amount of the underlying token, hence the name KPI.

UMA's DVM will vote on whether these conditions are met. The smart contract will use the results of this vote to settle the options.

We want to increase the liquidity of JRT on Polygon, using it as collateral for borrowing stablecoins.

1M JRT-ETH TVL KPI options (ticker JRT-ETH-KPI) have been minted, collateralized by 4M JRT. On May 2, 2022, holders of the KPI options will be able to redeem the underlying JRT based on the 7-day average liquidity of the JRT-ETH pool on Sushiswap (Polygon):

Therefore, if the liquidity in the pool averages over $2 million in the last 7 days before expiration, the price of 1 KPI should equal the price of 2 JRT.

KPI options are only distributed to liquidity providers on Sushiswap and KyberSwap.

800k JRT-ETH-KPI options are distributed to participants in the JRT-ETH Beefy vault on Polygon.

200k JRT-ETH-KPI options are distributed to liquidity providers of JRT-ETH-KPI-USD on KyberSwap.

The KyberSwap pool allows KPI options to have liquidity and provides an exit for yield farmers. Liquidity providers looking to increase their JRT exposure can hold KPI options until expiration.

Jarvis Network is a set of protocols and applications on EVM-compatible chains that connect legacy finance and decentralized finance (DeFi). Its mission is to build an infrastructure layer that anyone can leverage to develop use cases that promote DeFi adoption and build applications to attract the next billion users. Its first protocol, Synthereum, pioneered an innovative and capital-efficient way to issue and exchange synthetic fiat currencies called jFIAT, thanks to a fully on-chain foreign exchange market. jFIAT is designed to be a usable stablecoin: they maintain their peg, are highly liquid, and scalable.