Mimo and Jarvis jointly launched a Euro stablecoin farming program on Polygon

Author: Jarvis Network

Compiled by: ChainCatcher

We are very excited to announce a new single-yield farming program launched in collaboration with Mimo Capital on Curve (Polygon). This new program can unlock the full potential of euro stablecoins on Polygon by combining the value propositions of Mimo and Jarvis's own euro stablecoins (PAR and jEUR, respectively). The program will reward users who deposit jEUR, PAR, EURS, and EURT into the 4eur pool on Curve, along with $230,000 worth of JRT, UMA, and MIMO, wrapped in the DENARIUS token.

The Jarvis and Mimo teams have discussed the necessity of creating synergies between the two projects multiple times.

Mimo Capital allows its users to mint PAR (read the tutorial), a crypto-backed euro stablecoin, against their BTC, ETH, and USDC. Mimo essentially provides users with an on-chain euro credit line, allowing them to borrow euro stablecoins instead of selling their assets.

Jarvis Network allows its users to trade jEUR, a synthetic euro stablecoin, which is unique in that it can be exchanged for USDC when Chainlink prices are fed. This gives jEUR strong peg stability and high on-chain liquidity. Ultimately, jEUR also benefits from a 1:1 fiat on/off ramp supported by Mt Pelerin.

By pairing PAR with jEUR on Curve, users can now combine their respective value propositions: credit and liquidity! People can borrow PAR on Polygon through Mimo and exchange it for jEUR to gain deep on-chain liquidity (for example, for leverage, to buy more BTC or ETH), or they can cash out their loans for real euros through Mt Pelerin. Of course, it also provides yields on euro stablecoins through trading fees and incentives.

Jarvis Network and Mimo Capital are investing $230,000 in rewards in JRT, UMA, and MIMO, packaged into a token called DENARIUS (DEN) to reward liquidity providers in the 4eur Curve pool.

To participate in the yield program, you need to provide liquidity in the qualified Curve pool and stake the corresponding LP tokens in the Jarvis Yield application.

For EURS and EURT, the recommended option is to acquire them on Ethereum (Curve or Uniswap) and bridge them from Ethereum to Polygon.

Visit https://polygon.curve.fi/factory/37/deposit and deposit jEUR, PAR, EURS, and/or EURT.

Curve allows you to deposit any amount of these tokens, but you may experience slippage if the pool is unbalanced. We recommend either adding all tokens according to the "balanced ratio" or only adding the token with the lowest ratio.

At the time of writing, the ratio of EURS and EURT is the lowest:

Warning: If you add more tokens with a high ratio, you will experience high slippage. For example, using jEUR here:

After the deposit, your address will receive 4eur-f LP tokens.

Visit https://yield.jarvis.network/yield.

First, click Start Staking to approve the contract.

Then deposit your LP tokens.

You will start earning DEN rewards, which you can claim.

You can keep your DEN tokens or sell them on Curve at the price of 4eur LP tokens. The 4eur LP tokens you receive can be staked in the yield application to increase yields.

To participate in the yield program, you need to provide liquidity in the qualified pool of KyberDMM and stake the corresponding LP tokens in the Jarvis Yield application.

Since DEN and 4eur-f LP tokens do not appear in the KyberDMM interface, you may need to use the contract at the following address:

Visit https://dmm.exchange/#/add/0xAd32…3dfF and deposit DEN and/or 4eur-f LP tokens.

KyberDMM allows you to deposit two tokens in a balanced ratio ("token pair") or only one token ("single token"); using the latter feature, the tokens you provide will be sold, which may result in slippage.

After the deposit, you will receive 4eur-f-DEN DMM-LP tokens.

You will also need to stake them in the Jarvis Yield application, where you will be able to claim rewards.

The Denarius token is designed to meet the needs of both short-term and long-term farmers as well as project token holders. It is a future contract with some interesting trading mechanisms as described below.

DEN is backed by a basket of other tokens held in the reserve contract. For this program, it is backed by tokens worth $320,000 (based on today's prices):

DEN is listed on KyberDMM as 4eur-f LP tokens. The DEN-4eur pool is also incentivized. This way, short-term farmers can immediately sell their DEN for 4eur-f LP tokens and use the latter as collateral for compounding, while long-term farmers can hold their DEN and exchange them at maturity to redeem a portion of the reserve contract.

At maturity on January 21, each DEN token can be burned to redeem 1% of the reserve contract.

For example: If you have 2.1 DEN on January 21, and the reserve holds $300,000 worth of JRT, UMA, and MIMO, you will be able to burn your DEN and redeem 2.1% of JRT, UMA, and MIMO worth $300,000.

Since farmers can sell DEN, there will be no sell pressure on the underlying JRT, UMA, and MIMO tokens during the program.

DEN tokens are JRT-UMA-MIMO futures contracts that expire in 2 months. Market participants will buy and sell DEN by predicting the value of the tokens in the reserve contract at expiration. Short-term farmers will sell, creating arbitrage opportunities for long-term farmers or traders who will rebalance the price.

For example, if farmers sell, the price of DEN may be far below the value locked in the reserve contract; this may incentivize traders to buy DEN, thus obtaining discounted JRT, UMA, and MIMO at expiration.