Jellyverse (JLY), a decentralized finance (DeFi) platform operating on the Sei (SEI) blockchain, has disclosed the introduction of jAssets, a synthetic assets protocol. This innovative protocol allows users to produce synthetic tokens, which mirror the value of traditional real-world assets (RWAs). The announcement was made on Tuesday, January 21, according to the latest report shared with Finbold.
This fresh addition to the DeFi ecosystem will empower investors to diversify beyond typical crypto assets and penetrate traditional markets. The jAssets mainnet on Sei is also set to launch simultaneously.
The jAssets protocol enables users to leverage cryptocurrencies as collateral to issue synthetic assets, emulating the likes of Nvidia (jNVDA), Apple (jAAPL), Tesla (jTSLA), Meta (jMETA), and MicroStrategy (jMSTR). Benedikt Keck, Co-Founder of BLKSWN PTE. LTD, elucidated the potential of jAssets concerning portfolio diversity 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.”
The jAssets system employs an over-collateralized model, ensuring that the value of the collateral always surpasses that of the issued synthetic tokens. Currently, the platform supports collateral options including Wrapped Ethereum (wETH), Wrapped Bitcoin (wBTC), Jellyverse, Sei, USD Coin (USDC), Tether (USDT), Frax (FRAX), and Gems (GEM), with multi-collateral troves enhancing capital efficiency. The minimum collateral ratios span from 110% to 150%, contingent on the asset.
To enhance price accuracy, the jAssets Protocol integrates decentralized Pyth Network (PYTH) oracles and delivers real-time synthetic token price feeds. This integration allows users to trade around the clock, mitigating the risks associated with external trading halts, and maintaining control over their investments.
The protocol, launching on the Sei Network—the fastest Layer-1 (L1) blockchain with parallelized Ethereum (ETH) Virtual Machine (EVM) compatibility—can also offer a low-cost trading experience.
The introduction of this new protocol helps Jellyverse in bridging the divide between DeFi and traditional finance (TradFi). It reduces user dependence on cryptocurrency volatility while facilitating exposure to RWAs, marking a significant step forward in the fusion of the crypto and traditional finance sectors.
