My name is Pascal, and I am working at Jarvis Network. After having discussed with some team members from Kyber, I am writing down my first proposal which is a bit more unconventional than the other one, due to our reward mechanism, and because it concerns 3 pools.
I am happy to start a discussion here and to answer to any questions you may have.
1. Project Introduction
Jarvis Network is a set of DeFi protocols to make DeFi more accessible. Synthereum is our first protocol. It allows the issuance and exchange without slippage of synthetic fiat currencies (aka jFIAT) like jEUR, jCHF or jGBP. It is live on Ethereum and Polygon.
The jFIATs are backed by USDC, with a collateral ratio of 125% and a liquidation threshold set at 105%. They are integrated in a 0-fee fiat on and off-ramp on both networks. They can be exchanged without slippage for USDC or for any other jFIAT on the Jarvis Exchange, leveraging from the minting and burning mechanism of the protocol: when a user wants to buy jFIAT, a liquidity pool holding USDC mints and sells them in the same transaction, at the Chainlink price feed; when a user wants to sell jFIAT, a liquidity pool buys them back and burn them to redeem their collateral in USDC.
From an end-user point of view, they buy or sell jFIAT without slippage. Thanks to this design, traders can perform arbitrage between this primary market and secondary markets such as AMMs, in order to maintain a strong peg.
2. Proposal Summary, Motivation and Key Details
Jarvis Network is proposing a joint liquidity mining program with Kyber to help improve liquidity for the jFIATs token on KyberDMM protocol, and request to receive the KNC token upfront to add them to our LM contract.
During the campaign period, liquidity providers who add liquidity on the eligible jEUR-USDC, jGBP-USDC and jCHF-USDC amplified liquidity pools will receive LP tokens that can be staked on the yield page, and/or on our own Yield application, for additional JRT, UMA and KNC token rewards, depending on the outcome of the vote.
The rewards will be distributed through our own AUR token. The latter will be listed on KyberDMM against USDC (we will incentivise the pool ourselves). AUR tokens are representing other tokens locked in a smart contract, called the “reserve”. LPs receive AUR tokens and have the choice to sell them right now, or wait until the end of the 8 weeks program to unlock the JRT, UMA and KNC held in the reserve contract, by burning AUR. The reserve contract is seeded by Jarvis Network; this is why we would like to receive the KNC token in advance, in order to deposit them in the reserve contract, and to use our UI, built around the concept of the AUR token.
In the case this request will be rejected and the joint LM program will be approved, the AUR token will only hold JRT and UMA, and LPs would earn KNC and AUR tokens.
However, mind that using AUR tokens has few interesting consequences:
- It reduces the selling pressure of the underlying tokens; most likely, LPs with a short term strategy will dump their AUR tokens, without impacting the underlying JRT, UMA and KNC, and LPs who want to keep their tokens will keep their AUR tokens to exchange them at the end of the program for the underlying tokens.
- It introduces some game mechanics: if the price of the AUR token is below what traders think it will be at the end of the incentive period, they could buy it. If the tokens are oversold, this could constitute a nice opportunity to medium term traders.
- The admin of the AUR token can add more tokens during the program; for example, the more the TVL of Synthereum grows, the more UMA will be added, which will have a positive impact on the APR.
As part of the campaign launch, there will also be joint marketing efforts with Kyber Network.
Jarvis Network is an ideal candidate for Rainmaker Liquidity Mining on KyberDMM. We expect constant arbitrage opportunities between Jarvis Exchange, which uses Chainlink price feed, and KyberDMM, which will generate trading fees. Jarvis Network’s jFIAT have a direct fiat on and off-ramp on Polygon, to help to buy or sell jFIAT in order to participate in the program.
Jarvis Network will provide liquidity on a new amplified jEUR-USDC, jGBP-USDC and jCHF-USDC pool on KyberDMM, as well as amplified liquidity for the AUR-USDC pool. Together with requested KNC rewards, total incentives exceed the minimum requirement of $200,000.
3. KNC amount requested
77,000 KNC ($150,000, $50,000 per pool)
4. Amount of tokens project is contributing
1,200,000 JRT + 6,000 UMA ($200,000)
6. Token pair option
No, if the KNC tokens could be given upfront to Jarvis Network. Yes, 14 days if the upfront payment is refused.
8. Campaign start date and duration
Starts 15th of September, lasts for 8 weeks
9. Project Details
jFIAT contracts on Polygon: