Jarvis Network's single yield farming program in collaboration with KyberDAO

Author: Jarvis Network

Compiled by: ChainCatcher

We are excited to collaborate with KyberDAO to launch our new single-yield farming program on Polygon.

This program will reward users with $440,000 worth of JRT, UMA, and KNC, wrapped in AUREUS tokens.

Its goal is to guide liquidity in the secondary market for our jFIAT. While users can trade jFIAT without affecting the price on Jarvis Exchange, a second source of liquidity is still needed to facilitate certain use cases, such as liquidity exhaustion in our protocol, some low-risk trading features described in our manifesto, or allowing limited partners to exit their positions.

We invite you to join our live event tomorrow, October 7, at 3 PM GMT! We will explain how to participate, what the risks, rewards, and strategies are.

You can participate in the program by following this step-by-step tutorial or by asking questions in our Discord.

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

You can perform both actions on the Jarvis Yield application or KyberDMM.

For your information, here is the list of eligible mining pools:

KyberDMM is the AMM of KyberDAO, featuring dynamic fees and concentrated liquidity. It is designed to be very suitable for low-volatility assets like our stablecoins.

By participating in our program, you will earn AUR and trading fees as rewards. AUR needs to be harvested, while trading fees will only accumulate in your pool.

A total of 100 AUR have been minted, with 98 allocated as follows:

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

AUR is backed by a basket of other tokens held in the reserve contract. For this program, it has $450,000 worth of token backing (based on today's prices):

AUR is also listed on KyberDMM, and the AUR-USDC pool is incentivized. This way, short-term farmers can immediately sell their AUR, while long-term farmers can hold their AUR and exchange them at maturity to redeem part of the reserve contract.

Upon maturity on December 1, each AUR token can be burned to redeem 1% of the reserve contract.

For example: If you have 2.1 AUR on December 1, and the Reserve holds $500,000 worth of JRT, UMA, and KNC, you will be able to burn your AUR and redeem 2.1% of the $500,000 worth of JRT, UMA, and KNC.

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

The AUR token is a JRT-UMA-KNC futures contract that expires in 2 months. Market participants will buy and sell AUR 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 are selling, the price of AUR may be far below the value locked in the reserve contract; this may incentivize traders to buy AUR, thus obtaining discounted JRT, UMA, and KNC at expiration.