By adding their jBRL, BUSD, BNB, and ETH to the pool, users can earn interest on those currencies and most importantly these assets can be deposited and then utilized as collateral for loans.

Jarvis Network keeps surprising us with their constant Real Life to Web3 integration!

Jarvis Network’s Brazilian Real stablecoin jBRL and the Ellipsis Finance jBRL-BRZ LP token 2brl have been integrated into Midas, a money market on the BNB Chain. The Jarvis jFIAT pool offers users the ability to lend and borrow various assets, and to collateralize LP positions while still earning LP rewards.

What is Midas Capital?
Midas Capital is a new permissionless money market on the BNB Chain. The Tribe DAO ecosystem fully supports Midas, the cross-chain implementation team for Rari Capital's Fuse pools. Anyone can design unique and isolated pools for lending and borrowing any asset with Midas Capital's Fuse pools!

Compared to conventional money market, the isolated approach permits the onboarding of riskier assets and to contain their risks within the pool. By adding yield-bearing tokens and LP positions to the pools, users of Midas can continue to receive yield or LP incentives while still using those assets as collateral. Furthermore by earning interest while borrowing against their collateral, a user is able to increase capital efficiency and balance off the cost of their loans.

The ERC-4626 tokenized vault standard makes this possible by depositing these assets into a tokenized vault within the Fuse pool, which is subsequently placed into a yield-generating staking module.

The Jarvis jFIAT Pool
With the Jarvis jFIAT pool, which Midas has just launched, and the jBRL and 2brl tokens, tremendous use cases are now possible!

By adding their jBRL, BUSD, BNB, and ETH to the pool, users can earn interest on those currencies and most importantly these assets can be deposited and then utilized as collateral for loans.

Borrowing gives users multiple use cases
Users can borrow jBRL, BUSD, BNB, and ETH and deposit collateral. This makes a bunch of use cases possible:

In order to short BRLUSD, users can deposit BUSD, borrow jBRL, and then sell them back for BUSD on the jarvis.exchange. They might potentially use leverage by doing this repeatedly. Leveraged long trading on BRLUSD is possible when users deposit jBRL, borrow BUSD, sell them back for jBRL on jarvis.exchange, and repeat the procedure.

Leveraged farming: Users have the option of depositing ETH or BNB and borrowing jBRL to invest in the 2brl pool. By doing this, they can maintain their exposure to the price of ETH or BNB while releasing their liquidity to produce yield.

Off-ramping: Users have the option to borrow jBRL and swap them for BRZ through the 2brl pool, and off-ramp it utilizing different fiat off-ramps, such as BitPreco.

Users can utilize the 2brl LP token as collateral while the token is transferred into DotDot Finance and earn yield by depositing the token inside of Midas' tokenized vault. This enables some really potent use cases:

Looping: Users can deposit the 2brl LP token, generate yield, borrow jBRL, and deposit them into the 2brl pool, repeating the process numerous times. This loop permits high leveraged farming, and there is very no liquidation risk because the collateral and the loan are both denominated in BRL.

Hedged and leveraged farming is possible when users purchase BRZ with BRL and deposit them into the 2brl pool. They can then deposit the 2brl LP token into Midas' tokenized vault and borrow jBRL, which they can later off-ramp by swapping them for BRZ. This enables users to farm with a low initial investment and a high leveraged yield.

The newest Jarvis Product - jBRL Money Printer
The Money Printer allows the governance of Jarvis Network to issue uncollateralized jFIATs and deposit them immediately into a money market. With low interest rates maintained, this makes it possible to accommodate the need for a lot of liquidity while also producing additional revenue sources for the Treasury.

It has been used by the governance to mint uncollateralized jBRL and deposit them into Midas. These jBRLs are not collateralized while in the pool. They are de facto over-collateralized when they are borrowed because borrowing necessitates posting collateral.

About Midas Capital
A DAO in the Tribe DAO ecosystem, Midas Capital brings Rari Capital's Fuse pools to blockchains that are EVM-compatible. Anyone can design unique, segregated pools for lending and borrowing any asset on the permissionless money market known as Fuse. According to their risk tolerance, pool creators can change a variety of parameters (interest rate curves, oracles, collateral considerations, etc.).

About Jarvis Network
To connect centralized and decentralized finance, Jarvis Network is a collection of protocols and apps on EVM-compatible chains (DeFi). Its goal is to create an infrastructure layer that anybody can use to create use cases that support DeFi adoption and to create applications that onboard the upcoming billions of users. Thanks to a fully on-chain Forex market, its initial protocol, Synthereum, pioneers a novel and capital-efficient way to issue and exchange synthetic fiat currencies dubbed jFIATs. Stablecoins like jFIATs are made to be used; they maintain their peg and are scalable and extremely liquid.

Project Links:
Website - https://jarvis.network/
Twitter - https://twitter.com/jarvis_network
Discord - https://discord.com/invite/2GbKwERXDc
Medium - https://medium.com/jarvis-network
Docs - https://learn.jarvis.network/

Written By

Petrache Ionut

Jul 21, 2022