# Welcome in Synthereum Stable and liquid stablecoins. Synthereum is the first protocol of the Jarvis Network. It allows anyone to issue, borrow and exchange synthetic fiat currencies (jFIATs), on multiple EVM-compatible networks, collateralized by a reserve. The protocol features four core modules: * Liquidity Pools * Credit Lines * Wrappers * Money Printer {% hint style="success" %} The protocol's Liquidity Pools module pioneers a **capital-efficient on-chain Forex market** from which jFIATs derive their liquidity and peg, allowing them to be usable. {% endhint %} {% hint style="danger" %} Please read the risks[^1] before interacting with Synthereum. {% endhint %} [^1]: # Mission Non-USD stablecoins usually struggle to be liquid and constantly trade at their peg, preventing them from attaining the network effect required to develop a healthy ecosystem. Jarvis Network's mission is to create a **liquid infrastructure** for non-USD stablecoins (i.e. on-chain Forex market) and a whole **ecosystem of services** such as access to the on-chain liquidity, credit without Forex risk, saving in multiple currencies, hedging and leveraged trading on the Forex, international and domestic payments, fiat on and off-ramps in any local currencies, etc. The protocol's roadmap and its governance actions shall reflect this ethos. {% hint style="info" %} Our mission is not to achieve a monopolistic position nor have user-facing products but to be a" liquidity infrastructure" for other non-USD stablecoins issuers. That being said, we encourage builders wanting to build jFIAT-first products such as wallets, trading platforms etc. {% endhint %} # Synthetic stablecoins Synthetic stablecoins track the price of real-world currencies (fiat) but are not collateralized with the fiat they track the price of. > **Example** > > jEUR tracks the price of the Euro quoted in another asset (USD, ETH, etc.). More generally, j*XYZ* tracks the price of *XYZ* against another asset. Jarvis stablecoins are called jFIATs. # Primary and secondary markets Anyone can acquire jFIATs on both primary and secondary markets. ### Primary market jFIATs primary market is the Synthereum protocol. The latter mints jFIATs whenever someone buys them using the [Liquidity Pools](/protocol-overview/minting) or the [Wrappers](/protocol-overview/wrappers) or borrows them using the [Credit Line ](/protocol-overview/credit-lines-deprecated)or the [Money Printer](broken://pages/FGIIiQW8jh9d33X6QpQX). ### Secondary markets jFIATs secondary markets are all the decentralized exchanges and money markets where they are supported. The protocol can seed these markets using the [Money Printer](broken://pages/FGIIiQW8jh9d33X6QpQX). {% hint style="info" %} Many arbitrages happen between primary and secondary markets, harmonizing their prices and the interest rate across all the markets. {% endhint %} # jFIATs ### Floating exchange rate Floating exchange rate jFIATs are stablecoins tracking the price of currencies that are freely traded. These jFIATS are over-collateralized with approved collaterals. > **Example** > > The Euro (EUR) or the Canadian Dollar (CAD). #### ### Fixed exchange rate Fixed exchange rate jFIATs are stablecoins tracking the price of currencies pegged to another one. These jFIATs are collateralized with the jFIATs tracking the price of the currency they are pegged to. > **Example** > > The Franc CFA (XAF and XOF) or the Bulgarian Lev (BGN) are pegged to the EUR. # On Arbitrum

Ticker	Token	Icon
jCHF	0x3133...74A4	/files/vtBtoc7L8wVebgB2GKy2 /files/HnSQqeJjz6lPyQyn45Q3
jEUR	0xAD43…182F	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY
jUSD	0x6fc6…3a26	/files/teCdXYeDtpdSWWyQZqqJ /files/Hr6eHRapW5BF9WkWw06Z

# On Avalanche

Ticker	Token	Icon
jCHF	0x2d55..239e	/files/vtBtoc7L8wVebgB2GKy2 /files/HnSQqeJjz6lPyQyn45Q3
jEUR	0x9fb1…f702	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY

# On Base

Ticker	Token	Icon
jBRL	0xcd16...8c23	/files/LEJcEvEJ1J5XtE6Q2N8l /files/dM0WK8chNnu6fBAgpAQN
jEUR	0x4154...627d	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY

# On BNB Chain

Ticker	Token	Icon
jCHF	0x7c86..a05f	/files/vtBtoc7L8wVebgB2GKy2 /files/HnSQqeJjz6lPyQyn45Q3
jBRL	0x3166…a603	/files/LEJcEvEJ1J5XtE6Q2N8l /files/dM0WK8chNnu6fBAgpAQN
jEUR	0x23b8..24e8	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY
jGBP	0x048e…3f9e	/files/5czq9KKPKDuTCbDlkLvy /files/2mygYJ2DbuGl9NuxCQr2
cXOF	0xb145..a10d	/files/RguqCaEzr345Z88iRIZE /files/Tcal8lJ9uYKi1qTlQWg5
jMXN	0x47b1..5127	/files/TIuCzWWQSplCYXMc2oLz /files/lip98edClGGDpIA63GjE
jZAR	0x6B8b..A670	/files/ypyLWb86CMXYnmHszG5Q /files/gWRll32mT3peBTmWLk36

# On Gnosis Chain

Ticker	Token	Icon
jCHF	0x2d55…239e	/files/vtBtoc7L8wVebgB2GKy2 /files/HnSQqeJjz6lPyQyn45Q3
jEUR	0x9fB1…f702	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY

# On Optimism

Ticker	Token	Icon
jEUR	0x79af..d043	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY

# On Sonic

Ticker	Token	Icon
jEUR	0xA10a...fe70	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY

# On Polygon

Ticker	Token address	Icon
jAUD	0xCB7F..6133	/files/QcFSfiQNmN8xMO6v0DFm /files/CILjtFxW1Ao47cDXDaDc
jBRL	0xf2f7….d722	/files/LEJcEvEJ1J5XtE6Q2N8l /files/JlmbgkgzQS0RPCryPnOb
jCAD	0x8ca1…DeE3	/files/FpLMHCIz16mDx71JHd7Y /files/RiT72xAICr2PeWdpuWja
jCHF	0xbD14..D099	/files/vtBtoc7L8wVebgB2GKy2 /files/HnSQqeJjz6lPyQyn45Q3
jCNY	0x8452…e772	/files/r8GNLb6gKetBh86zVUc6 /files/HJAjFqV7AtKF7io4olo3
jEUR	0x4e3d…fb4c	/files/aCWa7lQJnMk9nN5ZBLQJ /files/3iSeZQG7YaRordkegwbY
jFRF	0x00FA…6356
jGBP	0x7670…ac8c	/files/5czq9KKPKDuTCbDlkLvy /files/2mygYJ2DbuGl9NuxCQr2
jJPY	0x8343…1FF9	/files/jJybCLidkqHxXePHWXht /files/mRRIDIRpUEtXoXUkmwOR
jKRW	0xa22f…067e	/files/d9hvfEemqf4Z5Zj4ItGp /files/M8TB2MgTVpIxXosYBPwt
jMXN	0xbd1f…6427	/files/TIuCzWWQSplCYXMc2oLz /files/lip98edClGGDpIA63GjE
jNZD	0x6b52…70E0	/files/aazDala4VPDxZj0lqTLZ /files/7guIcCrgadEOefgpXHf2
jPHP	0x4868…89d1	/files/ffDmR0fB8MKX8ruQxiFC /files/ffDmR0fB8MKX8ruQxiFC
jPLN	0x08e6…9dbf	/files/emlabX8q6L3h5pSMFKqC /files/Vy8xpZHBht2SHSjUcPvU
jSEK	0x197e…5d1a	/files/y1wYOqcewk90kLQyx9cV /files/ayxpyHcGEn5Jjq8GeDzE
jSGD	0xa926…b503	/files/Z04XmKETn8U3B74TPzGT /files/4wKcK4wEbcNwTgx7kL9O
jTRY	0x2a22…c9fc	/files/IRtqZGT6YJyLA7aFTmFD /files/gUr5XWa16AMq9A2FelBD
jUSD	0xc948…af44	/files/teCdXYeDtpdSWWyQZqqJ /files/Hr6eHRapW5BF9WkWw06Z

Ticker	Token address
jGOLD	0x192E…b45c	/files/q0e7OvSWFmqC5fQ5IIST

# Super jFIATs Super jFIATs (sjFIAT) are yield-bearing jFIATs using the ERC4626 standard. They accrue yield by simply holding them following an exchange rate. ### Revenues The governance decides what portion of the revenue should be allocated to Super jFIATs. Periodically, the governance converts the protocol's revenue to jFIATs and deposits them into the Super jFIATs contract using the [Superfluid protocol](https://www.superfluid.finance). Superfluid allows for streaming rewards block by block and adjusting the number of jFIATs streamed per block. This gives governance the flexibility to increase or decrease the stream to impact ### Minting Super jFIATs are minted by depositing jFIATs in the contract, following the exchange rate calculated by the contract. The exchange rate is non-linear and is calculated by taking the ratio between the jFIATs deposited by users and the total jFIATs in the contract (jFIATs deposited by the user + jFIATs streamed). ### Redemption Super jFIATs can be redeemed for jFIATs following the exchange rate. ### ⚠️ Risks Super jFIATs are constructed on the [**Super Fluid protocol**](https://superfluid.org), thus inheriting its risks, along with those associated with jFIATs outlined in [Risks](/risks-warning/risks). ### Addresses #### Base

Name	Contract
Super jEUR	0x89cc...09f9	/files/NoBq4kyDLDUxEPutztld /files/aLT5JEMhx59uINC5Zx7b

# Liquidity Pools The Liquidity Pools are smart contracts allowing anyone to buy and sell jFIATs without price impact. {% hint style="danger" %} **Please read the risks at the end of this page.** {% endhint %} ### Buying and selling Users can buy jFIATs from the protocol's liquidity pools, or sell jFIATs to the pools. These transactions only happen between jFIATs and approved collaterals. {% hint style="info" %} One pool is for one jFIAT and collateral pair, although multiple pools for the same pair can co-exist, with or without different parameters. {% endhint %} The swaps happen at the FIAT/USD or FIAT/COLLATERAL oracle price (provided by Chainlink, or computed using Chainlink price feeds) without spread or price impact regardless of the transaction size. Users pay a swap fee that depends on the jFIAT exchanged. > **Example** > > A user can buy $3,000 worth of jEUR with 3,000 USDC, or $50,000 worth of jMXN with $50,000 worth of ETH (minus the swap fees). Although there is no price impact, slippage may occur if the on-chain price is updated before the transaction is confirmed on the Blockchain. > **Example** > > If a user sign a transaction to buy 1,000 jCHF for 1,020 USDC at the CHF/USD rate of 1.02, but before the transaction is confirmed on the Blockchain, Chainlink updates the price to 1.025, then the user would receive 995 jCHF. {% hint style="info" %} Users can specify a maximum slippage above which the transaction will revert. Users can also specify a time after which the transaction will revert if the latter has not been confirmed yet. {% endhint %} ### Burn and mint mechanism A pool needs to be seeded by liquidity providers (LP) to start accepting swaps. Unlike traditional liquidity pools, Synthereum LPs only need to deposit one asset. The pools use a burn and mint mechanism to facilitate trades: * When a user buys jFIATs from a pool, the latter mints them. > **Example** > > An LP seeds a USDC-jEUR pool with 500 USDC. > > A user buys 900 jEUR for 1,000 USDC from the pool. > > The pool now holds 1,500 USDC: 500 USDC from the LP deposit and 1,000 UDSC from the sales proceeds. > > The pool mints 900 jEUR that it sends to the buyer and its LP has a 900 Euros EUR/USD short position. {% hint style="info" %} The LP has a short position on the FIAT/COLLATERAL pair, which size equals the number of jFIATs the pool has minted. {% endhint %} * When a user sells jFIATs to a pool, the latter uses its liquidity to buy them back and burns them. > **Example** > > The user sells their 900 jEUR for 1,050 USDC back to the pool (assuming the EURUSD rate increased). > > The pool will pay 1,050 USDC to the seller and burn the 900 jEUR it receives. > > The pool now holds 450 UDSC, has no more jEUR minted, and the LP has no open position. ### Liquidity providers LPs ensure that jFIATs can be bought and sold at any price by providing liquidity. {% hint style="info" %} LPs have a short position on the FIAT/COLLATERAL pair. They are the counterparty of users buying and selling through the pool; therefore, they profit when users lose and lose when users profit. In the previous example, the users profited from the EURUSD price appreciation and earned 50 UDSC. The pool used the LP's deposit to pay for these profits. {% endhint %} #### Collateral and health ratio The collateral ratio (CR) of the jFIATs is the ratio between the collateral value in the pool and the value of the jFIATs it has minted. The health ratio (HR) of an LP’s position is the ratio between the collateral value of the position and its size. > **Example** > > An LP seeds a USDC-jEUR pool with 10,000 UDSC. > > A user buys 2,500 jEUR (worth $2,625 at the EUR/USD rate of 1.05) from the pool. > > The pool now holds 12,625 USDC of collateral (10,000 USDC of the LP and 2,625 USDC from the sales of the jEUR) and has minted 2,500 jEUR ($2,625). The jEUR minted by the pool have a CR of 12,625/2,625 = 480%. > > The LP has a 2,500 Euros ($2,625) EUR/USD short position collateralized by 12,625 USDC. The position has an HR of 480%. {% hint style="info" %} The jFIATs are collateralized by the liquidity in the pool. Pools are seeded by LPs deposits and alimented by swap fees, sales proceeds, and user losses. {% endhint %} The CR of the jFIATs and the HR of the positions vary in function of two factors: * The more users are buying jFIATs from the pool, the lower the CR and HR (and vice versa). > **Example** > > In the previous example, the CR of the jFIATs minted by the USDC-jEUR pool and the HR of the LP’s short position were 480%. > > The user buys 5,000 jEUR more (worth $5,250). > > The pool now holds 17,875 USDC of collateral (10,000 USDC from the LP’s deposit and 7,875 UDSC from the two sales) and has minted 7,500 jEUR ($7,625). The CR of the jEUR minted by the pool have droped to 17,875/7,625 = 234%. > > The LP now has a 7,500 Euros ($7,625) EUR/USD short position collateralized by 17,875 USDC. The HR of the position drops to 234%. * The more the FIAT/COLLATERAL rate increases (or the COLLATERAL/FIAT rate decreases), the lower the CR and HR (and vice versa). > **Example** > > In the previous example, the CR and the HR were 234%. > > The EUR/USD rate goes up to 1.2, thus the 7,500 jEUR are now worth $9,000, and so is the 7,500 Euros short position. > > The CR of the jEUR minted by the pool is 17,875 / 9,000 = 199%, and so is the HR of the LP’s position. LPs must maintain the HR of their position above the ”liquidation threshold” (set by the governance). If the HR drops below the liquidation threshold, LPs face [liquidation](#liquidation). {% hint style="info" %} LPs make sure that the jFIATs minted by the pool remain over-collateralized (CR above 100%). The over-collateralization guarantees that jFIATs remain redeemable for their collateral, which confers them their value and peg. {% endhint %} #### Minimum health ratio LPs must specify a minimum health ratio (MHR) when they deposit liquidity for the first time. They can change the MHR anytime. Although, the MHR cannot be set below the liquidation threshold. If the HR of their position is below the MHR, they will not be the counterparty of new swaps. {% hint style="info" %} The MHR is a risk management tool to limit the exposure of LPs. The lower the MHR, the more an LP will be the counterparty for buying orders and, therefore, the bigger their position. An LP can also set a very high MHR to stop being the counterparty of buying orders. {% endhint %} #### Virtual liquidity The virtual liquidity (VL) is: * The value of jFIATs a user can buy from an LP, but expressed in the collateral-type of jFIATs. * Or the number of jFIATs a user can buy from an LP (jFIAT virtual liquidity). The combined VL of all the LPs is the VL of the pool, and the combined VL of all the pools is the VL of the associated jFIAT. {% hint style="info" %} It is "virtual" because it does not exist: the pool can facilitate buying $100,000 of jFIATs despite only holding 10,000 USDC. {% endhint %} The VL is calculated with the following formula: $$ VirtualLiquidity = \frac{NetDeposit }{MHR-1}-Position \* Price $$ And the jFIAT VL: $$ jFIATVirtualLiquidity = \frac{VirtualLiqiudity}{Price} $$ * NetDeposit: the LP net deposit (Deposits - Withdrawals) * MHR: the minimum health ratio * Position: the size of the position (quoted in the fiat) * Price: the FIAT/COLLATERAL rate > **Example** > > An LP seeds a USDC-jEUR pool with 10,000 UDSC. > > A user buys 2,500 jEUR (worth $2,625 at the EUR/USD rate of 1.05). > > The LP sets the MHR to 120%. > > The VL is (10,000 / (120% - 1) - 2,500 \* 1.05 = 47,375 USDC. > > The jFIAT VL is 47,275 / 1.05 = 45,119 jEUR. > > Therefore, users can buy up to 45,119 jEUR (worth $47,375). To increase their VL, LP can deposit more collateral (which will increase their HR) or lower the MHR of their position, or both. To decrease it, they can withdraw some collateral or increase their MHR, or both. The VL increases if the FIAT/COLLATERAL rate decreases, and vice versa. {% hint style="info" %} Unlike traditional liquidity pools which would require at least $200,000 of liquidity to allow the purchase of $100,000 of an asset, a Synthereum pool would only require $10,000 of liquidity if the MHR is set at 110%. {% endhint %} #### Available liquidity Until LPs have an open position, a part of their liquidity is collateralizing the jFIATs, and is therefore locked. Their locked liquidity is calculated as follows: $$ LockedLiquidity = Position \* Price \* (MHR-1) $$ Therefore the liquidity available to withdraw is calculated as follows: $$ AvailableLiquidity = NetDeposit - LockedLiquidity $$ An LP who would like to exit their position gradually can set their MHR very high, setting their virtual liquidity and, therefore, their buying shares to respectively 0 and 0%; this will reduce their position size as users sell jFIATs. {% hint style="info" %} Alternatively, LP can join a [LP vault](#lp-vault), allowing them to unlock their liquidity anytime. {% endhint %} #### Routing order between multiple LPs Each LP has a different position within the pool, and each LP's position is isolated: when an LP joins or exits a pool, adds or removes collateral, it does not impact the other LP's positions. When a user buys jFIATs, the order is split between each LP proportionally to their VL (buying shares). However, selling orders are split proportionally to the size of each LP's position (selling shares). > **Example** > > The EUR/USD rate is 1.05. > > LP1 has deposited 10,000 USDC in a USDC-jEUR pool and has set the MHR to 105%, with a VL of 210,000 jEUR. > > LP2 has deposited 100,000 USDC with an MHR of 120%, with a VL of 525,000 jEUR. > > Therefore, their respective buying shares are 28.5 and 71.5%. > > A user buys 50,000 jEUR for 52,500 UDSC. The order is split between the two LPs following their buying shares: 14,250 jEUR for 14,820 USDC for LP1, and 35,750 jEUR for 37,180 USDC for LP2. > > LP1 now has a 14,250 Euros ($14,820) short position collateralized by 14,820 + 10,000 = 24,820 USDC and an HR of 167%. > > And LP2 has a 35,750 Euros ($37,180) short position collateralized by 100,000 + 37,180 = 137,180 USDC and an HR of 369%. > > Therefore, their respective selling shares are 28.5 and 71.5%. {% hint style="info" %} In the previous example, LPs have the same buying and selling shares because they have joined the pool simultaneously. If one of the LPs adds or removes liquidity, their buying shares will change. If one of the LP would have joined the pool after a user buys jFIATs, their buying and selling shares would differ. {% endhint %} When an LP joins a pool, it does not open a position for them: their position will open only after a user buys jFIATs. Since they do not have a position, their selling shares are 0%. If an LP with an open position adds or removes liquidity, it only affects their buying shares for future orders; the size of their open position remains unchanged, and so are their selling shares. #### VLP token and vault Liquidity provision on Synthereum is not permissionless: users must apply to the governance to become an LP. {% hint style="info" %} An LP can be an individual, a DAO, a VC, etc. {% endhint %} LPs can also deposit their liquidity into a vault to join a mutualized position. A vault is a whitelisted LP with additional logic. We will launch a few protocol-owned vaults with different logic, but anyone can deploy their own vault and apply for whitelisting it. LPs receive a VLP token, which is tokenized share of the vault position. {% hint style="info" %} This solution offers permissionless liquidity provision, and more flexibility, thanks to the tokenization of the position which enables multiple use cases (secondary market LP token, collateral for money market, etc.) {% endhint %} #### Timelock of VLP tokens Newly minted VLP tokens have a 2 hours timelock during which no transfer will be possible. This measure is set to protect the protocol and other LPs from oracle front running. #### LPs revenues LPs have two revenue streams: * Trading fees: users pay trading fees when they buy or sell, and all the fees go to LPs. * Interest from lending: the protocol lends the collateral on third party money markets, and the interest is shared between LPs and the protocol’s treasury, as per a ratio voted by the governance. This essentially provides a multiplier on the money markets' interest. > **Example** > > EUR/USD rate is 1.05. > > An LP seeds a USDC-jEUR pool with 10,000 UDSC. > > They set the MHR to 110%, enabling a VL of 95,238 jEUR ($100,000) > > A user buys 30,000 jEUR for 31,500 USDC. > > The pool now holds 41,500 USDC and lends them on Aave at 0.8% per year. > > The LP receives 90% of the interest, and the protocol the other 10%. Therefore, the LP earns 90% \* 20,500 \* 0.8% = 226.8 USDC per year, which equals 2.26% per year (a multiplier of 2.835). > > If the user had bought 95,238 jEUR, the pool would hold and lend 110,000 USDC, and the LP would earn 7.92% per year (a multiplier of 9.9). {% hint style="info" %} A low MHR allows for a larger VL, leading to a larger position and more trading fees and interest. If the FIAT/COLLATERAL rate decreases, the VL increases, and more jFIATs can be bought. This allows the protocol to lend more collateral on money markets, increasing the multiplier. {% endhint %} ### Liquidation If the HR of an LP's position falls under the liquidation threshold, the position can be liquidated. Liquidators receive the collateral covering the position and a percentage of the remaining collateral, called the penalty fee, and set by the governance. > **Example** > > EUR/USD rate is 1.05. An LP seeds a USDC-jEUR pool with 1,000 UDSC and sets the MHR to 105% ($20,000 of VL). The liquidation threshold is 102.5% and the penalty fee is 100%. > > A user buys 18,000 jEUR ($18,900) from the pool. > > The LP has an 18,000 Euros ($19,900) EUR/USD short position collateralized by 19,900 USDC. The position has an HR of 105.3%. > > If the EUR/USD rate goes up to 1.08, the position would have an HR of 19,900 / (18,000 \* 1.08) = 102.3%, below the liquidation threshold. If the LP does not add more collateral, their position will get liquidated. > > A liquidator would need to acquire 18,000 jEUR ($19,440) to liquidate the position. The liquidator will get back 18,000 \* 1.08 = 19,440 USDC (18,000 Euros worth of collateral that covers the position) and a penalty fee of (19,900 - 19,440) \* 100% = 560 USDC (100% of the remaining collateral). The liquidator realises a profit to 560 / 19,440 = 2.9%. {% hint style="info" %} Liquidators can acquire the jFIATs by buying or borrowing them (with or without flash loans) on primary or secondary markets. {% endhint %} ### ⚠️ Risks associated with being a LP Providing liquidity has mutliple risks that one should factor in before joining a vault: 1. **Counterparty risks**: the LPs are the counterparty of all the swaps. They have a short position on the FIAT/COLLATERAL pair; therefore, they profit when users lose and lose when users profit. 2. **Oracle front-running**: in certain market conditions, oracles can delay the update of the price, leading to a big difference between two prices updates. If the difference is larger than the fee paid to the protocol, it opens the door to oracle front-running, a situation where a malicious user can make a profit on the back of the LPs. 3. **Liquidity lock (1)**: the collateral deposited by the LPs into the pool is used to over-collateralize the jFIATs; in the event when all the liquidity is used, and when the MHR is below or under its minimum threshold, withdrawing liquidity will not be possible until the situation is back to normal. 4. **Liquidity lock (2)**: the collateral deposited by the LPs into the pool is lent on an external money market; in the event when all the liquidity is borrowed, withdrawing liquidity may not be possible until the utilization of the money market's market is back to normal. 5. **Liquidation failure**: in a situation where there is not enough available liquidity to perform a liquidation, the CR of the jFIATs minted by the pool can falls under 100%. In this case, these jFIATs will become under-capitalised. A similar event can happen if the FIAT/COLLATERAL rate spikes so high and rapidly that liquidators will not have the time to liquidate positions under the liquidation threshold. {% hint style="warning" %} In addition to these risks, LPs are facing other risks such an issue with the protocol, such as a hack, or bug, or of the oracle, or of the underlying money market, where the liquidity is being lent. LPs also face the risk of the underlying blockchain and the assets used as collateral, that can be wrapped or natively minted. {% endhint %} ### Pool parameters The parameters of a pool are set during the deployment. Some of these parameters cannot be changed, such as the collateral type, oracle price, and liquidation threshold; other parameters can be changed afterward, such as the transaction fees, the liquidation penalty, and the whitelisting of LPs. ### Liquidity The total liquidity is available at the oracle price and is limited to the combined VL of all the pools. # Arbitrum ## UDSC.e collateral UDSC.e is a bridged USDC from Ethereum. USDC is a fiat-backed stablecoin issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jCHF	0x0768...0bd3	0.5%	102.5%	100%
jEUR	0x987E...bcA0	0.1%	102.5%	100%

## WETH collateral

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jUSD	0x288a...1c5b	0.1%	120%	20%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jEUR-200	1	0xd3df...f74b
USDC-jEUR-150	2	0x1C9c...10A7
USDC-jEUR-120	5	0xd3dF...F74b
USDC-jEUR-200	1	0xf86a...c61b
USDC-jEUR-150	2	0xc87C...b672
USDC-jEUR-120	5	0xbC24...21C7

## Collateral lending Collateral is lent on Aave v3. * Manager: [0x906b...0f5b](https://arbiscan.io/address/0x906b6f2dee9f9decdf80020732dbf98f59f70f5b) * Storage: [0xb919...1a06](https://arbiscan.io/address/0xb9192d5f9967e83d3349c63692fafb21a3391a06) # Avalanche ## USDC collateral USDC is the native USDC issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jCHF	0xBAe7...7787	0.2%	102.5%	100%
jEUR	0x6050...9C55	0.2%	102.5%	100%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jCHF-200	1	0x94a5...Ae14
USDC-jCHF-150	2	0x7626...Bdf1
USDC-jCHF-125	4	0x59F3...95b6
USDC-jEUR-200	1	0x1ebc...17c6
USDC-jEUR-150	2	0xE6DD...2D55
USDC-jEUR-125	4	0xF3c2...8DfE

## Collateral lending Collateral is lent on Aave v3. * Manager: [0x254b...679f](https://snowtrace.io/address/0x254b99E72185102258D3f9E7dA3E99a757d5679f) * Storage: [0x185b...400c](https://snowtrace.io/address/0x185bB0B7744a14CD336827fB94392f151e99400c) # Base ## UDSC collateral UDSC is the native USDC on Base. USDC is a fiat-backed stablecoin issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jBRL	0xd1e3...e8a5	0.5%	105%	100%
jEUR	0x67ae...fb94	0.3%	102.5%	100%

## ## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jBRL-200	1	0x336b...a27a
USDC-jBRL-150	2	0xcb6d...025f
USDC-jBRL-120	5	0x73ad...ad07
USDC-jEUR-200	1	0xBd51...09D8
USDC-jEUR-150	2	0x9E5C...d732
USDC-jEUR-120	5	0x8779...4524

## Collateral lending Collateral is lent on Aave v3. * Manager: [0x49bc...45eb](https://basescan.org/address/0x49bc51d8c140B7f64577Ba01f5604014450645eb) * Storage: [0x1e2D...921c](https://basescan.org/address/0x1e2De5e3F7E8383E61AD06Fe17A6de955ac1921c) # BNB Chain ## Pool registry * [0x2adc...9edb](https://bscscan.com/address/0x2adc01bf15fd73d33c3ce52dfdc7955e3dd49edb) ## Binance-Peg USDC collateral Finance-Peg USDC is a bridged USDC from Ethereum. USDC is a fiat-backed stablecoin issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Penalty
jCHF	0xa0fd...cb9e	0.2%	102.5%	100%
jBRL	0xe286...3f77	0.5%	105%	100%
jEUR	0x894b...c500	0.2%	102.5%	100%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jCHF-200	1	0x43Aa...Fd6E
USDC-jCHF-150	2	0x2106...4b2e
USDC-jCHF-120	5	0xEcbf...29e6
USDC-jBRL-200	1	0x6677...5Deb
USDC-jBRL-150	2	0x68BA...4BE3
USDC-jBRL-120	5	0xf1cd...8518
USDC-jEUR-200	1	0x8d5a...dcc1
USDC-jEUR-150	2	0x6ea9...de00
USDC-jEUR-120	5	0x5C81...86a6

## Collateral lending Collateral is lent on Aave v3. * Manager: [0xA6Ef...d535](https://bscscan.com/address/0xA6Efaae5f206e8F5d9F277A3BA751B73Cf69d535) * Storage: [0x524f...513f](https://bscscan.com/address/0x524f8797d095d7ee3d519a88076a52d0f5f7513f) # Gnosis Chain ## wxDAI collateral wxDAI is the wrapped version of xDAI. xDAI is a bridged version of DAI from Ethereum. xDAI is issued on the [Gnosis Chain](https://www.gnosischain.com/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jCHF	0x7B2D...A36b	0.2%	105%	100%
jEUR	0x0734...5566	0.2%	102.5%	100%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jCHF-200	1	0x334c...ec01
USDC-jCHF-150	2	0xC189...C58d
USDC-jEUR-200	1	0xce98...3252
USDC-jEUR-150	2	0xba77...08c1

## Collateral lending Collateral is lent on RMM v3. * Manager: [0x05f8...cebc](https://gnosisscan.io/address/0x05f8ad2ecdad60d3bfe44b3f5fc4a33076d0cebc) * Storage: [0x254b...679f](https://gnosisscan.io/address/0x254b99e72185102258d3f9e7da3e99a757d5679f) # Optimism ## UDSC.e collateral UDSC.e is a bridged USDC from Ethereum. USDC is a fiat-backed stablecoin issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jEUR	0x379a...fc95	0.1%	102.5%	100%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jEUR-200	1	0x814c...64b9
USDC-jEUR-150	2	0x2BE1...7E17
USDC-jEUR-120	5	0x4Cc8...048e

## Collateral lending Collateral is lent on Aave v3. * Manager: [0xffee...a2c4](https://optimistic.etherscan.io/address/0xffeef74c27047876b1bf56500dd0cead05dca2c4) * Storage: [0xa6cd...3b55](https://optimistic.etherscan.io/address/0xa6cdc0e62f1e001efcd033515e7cd78a30353b55) # Sonic ## UDSC collateral UDSC is a native USDC. USDC is a fiat-backed stablecoin issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jEUR	0xed14...5422	0.5%	102.5%	100%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jEUR-200	1	0x1ebc...17c6
USDC-jEUR-150	2	0xe6dd...2d55
USDC-jEUR-120	5	0xf3c2...8dfe

## Collateral lending Collateral is lent on Aave v3. * Manager: [0xa053...49f4](https://sonicscan.org/address/0xa0534d5119a10507e28577a555310104c77449f4) * Storage: [0xae1e...2459](https://sonicscan.org/address/0xae1efb214f43806ed7017ed1e6f288df2f3d2459) # Polygon ### USDC.e collateral UDSC.e is a bridged USDC from Ethereum. USDC is a fiat-backed stablecoin issued by [Circle](https://www.circle.com/en/).

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jAUD	0x3657…309c	0.1%	102.5%	100%
jBRL	0x30e9…d710	0.3%	105%	75%
jCAD	0x0644…389A	0.1%	102.5%	100%
jCHF	0x8734…2DeF	0.1%	102.5%	100%
jCNY	0x72E7….07bd	0.3%	105%	75%
jEUR	0x65a7…5003	0.1%	102.5%	100%
jGBP	0x36d6…9074	0.1%	102.5%	100%
jJPY	0xAEc7…3F29	0.3%	102.5%	100%
jKRW	0x7aC6…089D	0.3%	105%	75%
jMXN	0x25E9…0E31	0.3%	105%	75%
jNGN	0x63B5…0f9F	0.2%	105%	75%
jPHP	0x8aE3…fa35	0.2%	105%	75%
jPLN	0x166e…FED5	0.3%	102.5%	100%
jSEK	0xc844…cFDd	0.2%	105%	75%
jSGD	0xBE81…514C	0.1%	102.5%	100%
jTRY	0x874b…921f	0.1%	110%	50%

Ticker	Liquidity Pool	Fee	Liquidation
jGOLD	0x7a75...401d	0.3%	105%	100%

### WETH collateral WETH is a bridged WETH from Ethereum.

Ticker	Liquidity Pool	Fee	Liquidation	Liq. Penalty
jEUR	0x162e...768E	0.1%	110%	50%

## LP Vaults LP Vaults allows to provide liquidity in a permissionless way.

Vault	Leverage	Address
USDC-jEUR-200	1	0x57bd...89b9
USDC-jEUR-150	2	0x8fb5...8d4c
USDC-jEUR-125	4	0x9e98...cc68

## Collateral lending Collateral is lent on Aave v3. * Manager: [0x2051...9ea8](https://polygonscan.com/address/0x2051c21d4b5a62817c4f4455a1b23ec4f06c9ea8) * Storage: [0x04d6...09e9](https://polygonscan.com/address/0x04d6206CCd424f2E82901EE1CD3982b0b9C409e9) # Credit Lines \[deprecated] The Credit Lines are smart contracts allowing anyone to borrow jFIATs against yield-bearing collateral. {% hint style="warning" %} The Credit Lines module has been shut down by a governance decision. The borrowing module of the protocol has been replaced by markets on the lending protocol Morpho, on Base. {% endhint %} ### Borrowing and repaying Users can borrow jFIATs from the protocol against approved collateral, for a fixed origination fee of 0.5%. Each collateral has a "borrowing power" (BP) which determines the size of the credit line (CL) the user can open. > **Example** > > WETH has a BP of 80%. > > A user deposits 1 WETH ($2,000), which opens a CL of $1,600. > > The user decides to use half of their CL and borrows $800 of jCAD. > > A origination fee of $800 \* 0.25% = $2 is paid in WETH to the protocol. {% hint style="info" %} The BP varies with the volatility and liquidity of the collateral, as well as with the risks it bears. The higher the volatility, the lower the liquidity, and/or the riskier the asset is, the less one could borrow against it. We are re-using the parameters used by Aave. {% endhint %} Users can retrieve part or all their collateral by repaying their loan. There is no repayment fee. ### Interest on the collateral The protocol lends the collateral deposited by users on third-party money markets, and the interest is shared between the borrower and the protocol’s treasury, as per a ratio voted by the governance. {% hint style="info" %} The current Credit Line contracts (v2) do not support this feature. It will be part of the Credit Line v3 contracts. {% endhint %} ### Liquidation The health ratio (HR) is the ratio between the collateral value and the loan's value. > **Example** > > A user deposits $2,000 of WBTC and borrows $1,000 of jEUR. > > Their HR is 2,000 / 1,000 = 200%. The borrower must maintain their HR above the liquidation threshold (set by the governance). If the HR drops below the liquidation threshold, the borrower faces liquidation. The liquidator must repay part or all of the loan on behalf of the user. As a reward, they receive the collateral covering the loan and a percentage of the remaining collateral, called the penalty fee, and set by the governance. > **Example** > > BTC/EUR rate is 20,000, and WBTC‘s BP is 70% with a liquidation penalty fee of 10%. > > A user deposits 1 WBTC (€20,000), which opens for them a CL of €14,000. > > The user uses all of it and borrows 14,000 jEUR. > > The HR of their loan is 20,000 / 14,000 = 142%. > > The liquidation threshold is 125%. > > If the BTC/EUR rate goes down to €17,000, the loan would have an HR of 17,000 / 14,000 = 121%. > > If the user does not add more collateral or repay part or all of their loan, it will be eligible for liquidation. > > A liquidator must acquire 14,000 jEUR (₿0.82) to liquidate the position. The liquidator will get back 14,000 / 17,000 = 0.82 WBTC (14,000 Euros worth of collateral that covers the loan) and a penalty fee of (1 - 0.84) \* 10% = 0.018 WBTC (10% of the remaining collateral). The liquidator realises a prefit of 0.018 / 0.82 = 2.2%. {% hint style="info" %} Liquidators can acquire the jFIATs by buying or borrowing them (with or without flash loans) on primary or secondary markets. {% endhint %} # Base {% hint style="danger" %} The Credit Line are being shut down and replaced by an isolated money market. A new MetaMorpho vault on Base has been deploy to borrow jEUR against various assets. The vault is currently being deployed and setup and a UI will be launched soon. {% endhint %} * MetaMorpho [0x4dbd...e45a](https://basescan.org/address/0x4dbd80f8029d5264fac0b57a16ac54de512be45a) # Arbitrum {% hint style="danger" %} The Credit Lines module has been shut down by a governance decision. {% endhint %} ### jEUR Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WBTC	0x8Fb0...3450	80%	5%
WETH	0xF2fC...	83%	4%
WSTETH	0x78DC...b266	83%	4%
USDC.e	0x5e74..9bf4	95%	2.5%

### Admin function * The Admin can grant or revoke the Maintainer role to an address. * The Maintainer(s) can deploy new Credit Line, and modify the “Debt Ceilling”, the “Fee Recipient”, the “Fees Allocation”, and the “Liquidation fee” of each Credit Line.


Admin	0x8232…2381 (controlled by the core team)
Maintainer	0x52b0…90B7 (controlled by the core team)
Comptroller	0x6893...CB11

# Avalanche {% hint style="warning" %} The Credit Lines module has been shut down by a governance decision. {% endhint %} ### jCHF Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WAVAX	0x5f5f...Ed2D	66%
BTC.b	0xa5B2...868d	80%	5%
jEUR	0xE1Db...D090	95%
WETH.e	0xe27C...9a41	83%	4%
USDC	0x68fF...50F9	95%	2.5%

### jEUR Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WAVAX	0x92b9...136f	66%
BTC.b	0x8EE5...c0D7	80%	5%
jCHF	0xEB25...4718	95%
WETH.e	0xe986...4106	83%	4%
USDC	0x0D4f...bfD4	95%	2.5%


Admin	0x20c7...946c (controlled by the core team)
Maintainer	0xe3F1...6d17 (controlled by the core team)
Comptroller

# BNB Chain {% hint style="warning" %} The Credit Lines module has been shut down by a governance decision. {% endhint %} ### ### jBRL Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
BNB	0x1E1E...3Dad	77%	6%
BTC	0x3ef9...ce13	77%	6%
BUSD	0xa3d4..7ef7	85%	3%
jCHF	0xDF71...DF6e	87%	3%
ETH	0xdc9f...ede5	83%	4%
jEUR	0x41e0...1a64	87%	3%
USDC	0xBfA3...165d	85%	3%

### ### jCHF Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
BNB	0xAb30...1A0D	80%	5%
BTC	0xB9E5...2d24	80%	4%
BUSD	0x3d8d...977d	95%	2.5%
jBRL	0xDB19...8426	87%	3%
ETH	0xe3a3...fb38	83%	4%
jEUR	0xA302...7a77	95%	2.5%
USDC	0xd640...cc8E	95%	2.5%

### jEUR Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
BNB	0xE53d...aAbD	80%	5%
jBRL	0xaDD4...c25f	87%	3%
BTC	0x2098...baac	80%	5%
BUSD	0x3B72...FdA9	95%	2.5%
jCHF	0x72b8...7965	95%	2.5%
ETH	0x316e...3456	83%	4%
USDC	0x7509...22E6	95%	2.5%


Admin	0xC198…3b54 (controlled by the core team)
Maintainer	0x88e3…1c14 (controlled by the core team)
Comptroller	0xc687...65f2

# Optimism {% hint style="warning" %} The Credit Lines module has been shut down by a governance decision. {% endhint %} ### ### jEUR Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WBTC	0xE53d...aAbD	83%	4%
WETH	0x3d8D...977d	83%	4%
WSTETH	0x2098...bAAc	83%	4%
OP	0x316E...3456	66%	10%
USDC.e	0xA3d4...7eF7	95%	2.5%


Admin	0x0360…4065 (controlled by the core team)
Maintainer	0x68df…46de (controlled by the core team)
Controller	0xd3A4...7D2A

# Polygon {% hint style="warning" %} The Credit Lines module has been shut down by a governance decision. {% endhint %} ### ### jBRL Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WBTC	0xE85F...d085	77%	6%
jCHF	0x2719...306F	83%	4%
WETH	0x4a11...5F6b	77%	6%
WSTETH	0x89eB...B213	77%	6%
jEUR	0xb65a...94e2	87%	3%
WMATIC	0x005c...487b	66%	6%
stMATIC	0x67c0...0DC2	66%	6%
USDC.e	0x38f3...E439	87%	3%

### jCHF Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WETH	0xb0E9...F22B	80%	5%
WSTETH	0xe076...A6bA	80%	5%
stMATIC	0xE8d2...fac3	66%	6%
jEUR	0x66bE...efe7	95%	2.5%
USDC.e	0x7c56...4761	95%	2.5%

### jEUR Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
WBTC	0xcc6B...6F23	80%	5%
jBRL	0xfb95...808f	87%	3%
jCHF	0x6ffc...f9e6	95%	2.5%
WETH	0xE63F...0E51	80%	5%
WSTETH	0x3b89...7D6E	80%	5%
WFRK	0xa676...a50d	98%	2%
WMATIC	0x4229...9956	66%	6%
stMATIC	0xc09B...D3C1	66%	6%
USDC.e	0x4154…627d	95%	2.5%

### jGOLD Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
USDC.e	0xcd...8C23	87%	3%

### jMXN Credit Line

Collateral	Credit Lines	Borrowing power	Liq. penalty
jBRL	0x12Bd...6aBf	83%	4%
WBTC	0x8ec0...da58	77%	6%
jCHF	0x7E97...323a	83%	4%
WETH	0x7bdD...bd69	77%	6%
WSTETH	0x3De4...9c05	77%	6%
jEUR	0xF098...a6Ab	87%	3%
MATIC	0xCe58...3BB6	66%	6%
USDC.e	0x49bA7...906b	87%	3%


Admin	0x8a73…7ca1 (controlled by the core team)
Maintainer	0x05Bd…0941 (controlled by the core team)
Comptroller	0xa053...49F4

# Borrowing on Morpho {% hint style="danger" %} **Please read the risks at the end of this page.** {% endhint %} Users can borrow jEUR and USDC against various approved collateral. ### jEUR borrowing markets The liquidity of these markets mainly comes from the jEUR Vault. [More info about the vault](/protocol-overview/lending-on-morpho).

Collateral	Morpho UI	Borrowing power	Liq. penalty	Oracle
stEUR	See on Morpho	94.5%	4.38%	EUR/USD (Chainlink) and stEUR exchange rate
stUSD	See on Morpho	86%	4.38%	EUR/USD (Chainlink) and stUSD exchange rate
USDC	See on Morpho	86%	4.38%	EUR/USD (Chainlink) and USDC/USD (Chainlink)
cbBTC	See on Morpho	86%	4.38%	EUR/USD (Chainlink) and BTC/USD (Chainlink)
cbETH	See on Morpho	86%	4.38%	EUR/USD (Chainlink) and cbETH/USD (Chainlink)
WSTETH	See on Morpho	86%	4.38%	EUR/USD (Chainlink), wstETH/ETH (Chainlink) and ETH/USD (Chainlink)

### USDC borrowing markets The liquidity of these markets mainly comes from the USDC Vault. [More info about the vault](/protocol-overview/lending-on-morpho).

Collateral	Morpho UI	Borrowing power	Liq. penalty	Oracle
sjEUR	See on Morpho	86%	4.38%	EUR/USD (Chainlink) and sjEUR exchange rate

### ⚠️ Risks of borrowing In addition to protocol risks, borrowing carries many risks: 1. **Liquidation risk**: If your collateral value drops below the required threshold, it may be liquidated, potentially at a loss. 2. **Interest rate risk**: Borrowing rates may vary depending on market conditions. 3. **Oracle risk**: Inaccurate or delayed price feeds may trigger wrongful liquidations. # Lending on Morpho {% hint style="danger" %} **Please read the risks at the end of this page.** {% endhint %} Users cannot lend assets directly on Morpho. They need to deposit the assets they want to lend into the Jarvis vaults on Morpho. The vaults are owned by the Jarvis DAO and curated by Jarvis LTD. Assets deposited within the vaults are lent in the various [existing markets](/protocol-overview/borrowing-on-morpho). ### jEUR Vault


Name	Jarvis jEUR Morpho Vault
Symbol	mjEUR
Address	0x13f9...d467
Morpho UI	See on Morpho
Performance Fee	10%

### USDC Vault


Name	Jarvis USDC Morpho Vault
Symbol	mjUSDC
Address	0xf619...81b9
Morpho UI	See on Morpho
Performance Fee	10%

### ⚠️ Risks of providing liquidity in the vaults By providing liquidity in the vaults, users will let Jarvis LTD lend their assets against various collateral. In addition to protocol and oracle risks, lending carries out other risks that can result in the loss of funds. 1. **Counterparty risk**: although overcollateralization and liquidations mitigate this, extreme market volatility, oracle failures, or problem with the collaterals supported can lead to borrowers failing to repay their debt. 2. **Liquidation risk**: collateral value may drop suddenly or face a liquidity crisis, preventing liquidation to happen. # Wrappers The Wrappers are smart contract to convert one stablecoin into its jFIAT’s equivalence. ### Wrapping and unwrapping Users can wrap an approved fiat-backed stablecoin into its jFIAT equivalent and vice versa, at a 1-to-1 ratio, without any fee. > **Example** > > A user can wrap 10,000 EURe into 10,000 jEUR, or unwrap 1,000 jCAD into 1,000 CADC. {% hint style="info" %} Thanks to the 1-to-1 wrapping and unwrapping ratio, fiat-backed stablecoins, and their jFIATs equivalent inherit from their respective features: Wrappers confer to jFIATs a fiat on and off-ramp, and to fiat-backed stablecoins access to deep on-chain liquidity. {% endhint %} {% hint style="info" %} The Wrappers reduce the market risk of jFIATs by introducing collateral in fiat by proxy. jFIATs minted through the Wrappers are backed by their equivalent fiat-backed stablecoins, backed by real fiat. {% endhint %} ### Liquidity There is no limit for wrapping a fiat-backed stablecoin into a jFIAT; however, the unwrapping liquidity is limited to the number of fiat-backed stablecoins that have been wrapped. > **Example** > > Users have wrapped 50,000 XSGD into 50,000 jSGD. Therefore, a maximum of 50,000 jSGD can be unwrapped. ### Fixed exchange rate jFIAT Fixed exchange rate jFIATs are stablecoins tracking the price of currencies pegged to another one. > **Example** > > The Franc CFA (XAF and XOF) is pegged to the Euro, with a EUR/XAF exchange rate of approximately 656. Fixed exchange rate jFIATs are using the Wrappers contract, with the difference that the ratio is not 1-to-1, but 1-to-X, where X is the exchange rate. > **Example** > > A user can wrap 100 jEUR into 65,600 jXAF or jXOF. ### Collateral lent The collateral is lent on money markets. The protocol's treasury receives all the interests generated. {% hint style="info" %} Lending the collateral may reduce unwrapping-side liquidity since borrowed assets cannot be withdrawn from the money market. {% endhint %} {% hint style="warning" %} 🚧 The module for lending the collateral on money market is under development. {% endhint %} ### Pause The governance can pause the wrapping of a Wrapper. # Base

jFIAT	Collateral	Wrapper
jEUR	EURC (Circle)	0x41b0...b798

# Polygon

jFIAT	Collateral	Wrapper
jBRL	BRZ (Transfero)	0x4F51...467d
jCAD	CADC (PayTrie)	0xe7ad…e8e8
jEUR	EURe ( Monerium)	0xb07c…6ad0
jSGD	XSGD (StraitsX)	0x0b3a…5587
jTRY	TRYB (BiLira)	0x0ab5…f1c3

# Money Printer The Money Printer is a collection of modules to print uncollateralized jFIATs. {% hint style="warning" %} :construction: This page is only about the Direct Deposit module. The other modules are under development. {% endhint %} ### Printing jFIATs can be printed by the governance and directly deposited into whitelisted money markets. This allows seeding the liquidity for borrowers. The protocol's treasury receives all the interest generated by the loans. > **Example** > > The governance can print 500,000 jEUR and deposit them into Aave in the same transaction. {% hint style="info" %} The governance can play with the interest rates to match the demand: depositing more jEUR would decrease the interest rates while withdrawing them would increase them. {% endhint %} ### Over-collateralization Unlike other minting mechanisms, printing does not require providing collateral. The printed jFIATs are directly deposited into a whitelisted money market. Until they are not borrowed, they remain in the money market and are not in the circulating supply. Users need to provide collateral to borrow them. Therefore, when these jFIATs are borrowed and enter the circulating supply, they are over-collateralized by the money market protocol. > **Example** > > The governance prints 700,000 jEUR ($735,000) and deposits them into Midas. > > These jEUR are uncollateralized but are not in the circulating supply. > > A user borrows 100,000 jEUR ($105,000) by depositing $40,000 of collateral. > > Therefore, 600,000 jEUR are uncollateralized and remain in Midas, and 100,000 are now in the circulating supply with and over-collateralized with a 200% collateral ratio. ### Liquidation The liquidation is happening on the money market protocol and depends on the latter's design. ### Read more on our blog: {% embed url="" %} # BNB Chain | Contract | | -------------------------------------------------------------------------------------- | | [0x2ee8..0a8d](https://bscscan.com/address/0x2ee8db7f1f64dd590a35ac3c64b3c18ac11b0a8d) | # Polygon | Contract | | ------------------------------------------------------------------------------------------ | | [0x9fB2..167B](https://polygonscan.com/address/0x9fB2fbaeCbC0DB28ac5dDE618D6bA2806F71167B) | # Liquidity Router The Liquidity Router combines multiple transactions into one to perform more complex actions. ### **On-chain Forex swap** The router can combine two Liquidity Pools swaps to exchange jFIAT with jFIAT: the first swap between a jFIAT and its collateral and the second between the collateral and a jFIAT. > **Example** > > For exchanging $10,000 of jEUR for jSGD, the router first swaps $10,000 of jEUR for 9,990 USDC (10 USDC of fee) using a USDC-jEUR pool and then swaps the 9,990 USDC for $9,980 of jSGD (9.99 USD of fee) using a USDC-jSGD pool. {% hint style="info" %} Since the two swaps happen without price impact, the router enables a 0-price impact on-chain Forex market. {% endhint %} ### **Cross-asset swap** The router can combine Liquidity Pool swaps with AMM swaps to exchange jFIAT with any other asset and vice versa: the first between a jFIAT and its collateral without price impact and the second between the collateral and any other token. > **Example** > > For buying $10,000 of WBTC with jBRL, the router first swaps $10,000 of jBRL for 9,980 USDC (20 USDC of fee) using the USDC-jBRL pool, then swaps the 9,980 USDC for ±$9,980 of WBTC (slippage and price impact occurs). {% hint style="info" %} The router creates liquid jFIAT/TOKEN pairs without creating a jFIAT/TOKEN pool on the AMM. {% endhint %} Since the Liquidity Pool swaps happen without price impact, swaps between a jFIAT and another asset have the same price impact and slippage as swaps between their collateral and the same asset. {% hint style="info" %} The router connects jFIATs to the entire on-chain liquidity of their collateral. {% endhint %} ### Wrapper swap The router can combine a Wrapper wrap, or an unwrap with an on-chain Forex swap or cross-asset swap. > **Example** > > For exchanging CADC to WBTC, the router first wraps CADC into jCAD using the CADC Wrapper, then swaps the jCAD for WBTC through a cross-asset swap. > > For exchanging XSGD for EURe, the router first wraps XSGD into jSGD, then swaps the jSGD for jEUR through an on-chain Forex swap, and finally unwraps the jEUR for EURe using the EURe Wrapper. {% hint style="info" %} There are CADC-jCAD, XSGD-jSGD, or EURe-jEUR stable pools on Curve or Balancer. A cross-asset swap using these pools may offer a better route than a wrapper swap, depending on the slippage in the stable pools. The router can also use these pools. {% endhint %} ### Leveraged long and short The router can combine a Credit Line or money market loan with an on-chain Forex swap or cross-asset swap to open a leveraged long or short position on any jFIAT/TOKEN pair. > **Example** > > To open a EUR/CAD leveraged long position, the router deposits jEUR as collateral into the Credit Line or a money market and borrows jCAD or CADC. Then the router performs an on-chain Forex swap or a wrapper swap to swap CADC or jCAD for jEUR. The router can then repeat the operation to increase the leverage. ### Community routers #### PicNic The [PicNic](https://www.usepicnic.com/) router combines Liquidity Pools with AMM swaps to perform on-chain Forex and cross-asset swaps to create and manage a crypto portfolio entirely on-chain. #### Paraswap The [Paraswap](https://www.paraswap.io/) router combines a Liquidity Pool swap with its off-chain liquidity aggregation engine to perform on-chain Forex swaps and cross-chain swaps with the best liquidity possible. Since Paraswap aggregates liquidity, it always offers better results than our purely on-chain cross-asset swaps. #### Stableswap The [Stableswap](https://www.stableswap.fi/) router combines Paraswap, Liquidity Pools, Wrappers, and AMM swaps to exchange stablecoins with any other stablecoin at the absolute best prices, enabling a universal on-chain Forex market. # Bridge The Bridge is a smart contract to transfer jFIATs from one chain to another one, using Chainlink's Cross-Chain Interoperability Protocol (CCIP). ### Mint and burn The Bridge burns jFIATs on the origination chain and mints the same amount of jFIATs on the destination chain, at a 1-to-1 ratio. The fees are paid in the gas token of the origination chain. {% hint style="info" %} The Bridge uses the Cross-Chain messaging protocol of Chainlink (CCIP) to transfer the information from one chain to another one. When jFIATs are transferred between chains, the amount of jFIATs to be minted on the destination chain is sent through a message using Chainlink's CCIP. Once the message is received, the Bridge mints the jFIATs and send them to the recipient. Read more: {% endhint %} ### Limits The governance can set limits per jFIATs and per chain. ### Addresses | | | | ------------ | ------------------------------------------------------------------------------------------------------ | | Arbitrum | [0xe4dd...333b](https://arbiscan.io/address/0xe4dd926a3f3fc03f64462db6f726b70cd2c2333b) | | Avalanche | [0xf767...b4e8](https://snowtrace.io/address/0xf7674d951296C2612b9aD62d89Eff8fA0bfEb4e8) | | Base | [0xD6E2...7f4c](https://basescan.org/address/0xD6E201d664B29f7B0ebE50B423c7D3cF3f0A7f4c) | | BNB Chain | [0x0818...24fe](https://bscscan.com/address/0x0818b48d171f90f8d97c6f6ebf18bc2de6f224fe) | | Gnosis Chain | [0x3b05...31f4](https://gnosisscan.io/address/0x3b05b902fe763ad87aa755fab70f86c76bf331f4) | | Optimism | [0x1d1f...b226]() | | Polygon | [0x8167...5aec]() | # Stability mechanism jFIATs are listed on various exchanges, with their price fluctuating freely due to the trading activity. Since Liquidity Pools allow buying and selling jFIATs at the oracle price and without price impact, arbitrageurs can quickly correct any misprice on secondary markets. > **Example** > > If the price of jEUR on Balancer is higher than it should be, an arbitrageur can: > > * Buy jEUR from a Synthereum pool and sell them on Balancer at a higher price, making an instant profit; > * Borrow jEUR from a Credit Line, sell them on Balancer, and repurchase them at a lower price on a Synthereum pool to repay their loan. > > This operation will push down the price on Balancer, making it closer to the actual market price. {% hint style="info" %} Eventually, other stablecoins can use jFIATs convertibility to their collateral to help them with their peg and liquidity. These stablecoins can be paired with their jFIATs equivalent in a stable pool or request the launch of a Wrapper. {% endhint %} # JARVIS token {% hint style="info" %} JRT holders must migrate their JRT tokens to JARVIS at [https://jarvis.money/migrate](https://jarvis.money/migrate/). The **max supply of JARVIS is 42M**, so the JRT -> JARVIS migration is not 1:1, but 13.4523809524:1. {% endhint %} JARVIS holders can use their JARVIS tokens or their JARVIS-ETH LP tokens to participate within the governance of the Jarvis Network. ### stJARVIS JARVIS-ETH LP tokens must be staked to mint stJARVIS at [https://jarvis.money/tokenomics](https://jarvis.money/tokenomics/) by depositing JARVIS and ETH at the same time in the desired AMM. The number of stJARVIS minted depend on the number of JARVIS deposited and on the weight balance of the AMM: * 50/50 pool: 1 JARVIS deposited mints 1 stJARVIS. * 80/20 pool: 1 JARVIS deposited mints 0.5 stJARVIS. * 98/2 pool: 1 JARVIS deposited mints 0.25 stJARVIS. ### Voting power JARVIS and stJARVIS provide voting power to govern the protocol and its treasury. The protocol builds its treasury through different revenue streams: * Protocol Owned Liquidity (POL) in primary and secondary markets (Liquidity Pools, AMM, money markets). * Commissions on the interest generated by the collateral lent on money markets (Liquidity Pools, Credit Lines, Wrappers). * Automated Market Operation (AMO) to conduct arbitrage operations. * Treasury management (trading, lending, farming, etc.). * Bonds and token sales. ### Staking rewards Provided that the governance enacts it, stJARVIS holders can claim part of the revenues of the protocol as well as the underlying yield generated by their LP tokens (trading fees and emission). stJARVIS holders can also claim any future token launched by the Jarvis Network. # Token information ### JARVIS JARVIS (Jarvis Token) is natively deployed on Ethereum and bridged to various networks.

Network	Address
Arbitrum	0x2c79...1c98
Avalanche	0x7d87...b2c4
Base	0x777b...ee16
BNB Chain	0x644c...2c55
Ethereum	0xbd8f...07a5
Optimism	0x1574...4066
Polygon	0xe292...f3be

### stJARVIS JARVIS (Jarvis Token) is natively deployed on Ethereum and bridged to various networks.

Network	Address
Arbitrum	Not deployed yet.
Avalanche	Not deployed yet.
Base	0x2884...A2E8
BNB Chain	0x906b...0f5b
Ethereum	Not deployed yet.
Optimism	0xf920...4f8a
Polygon	Not deployed yet.

#### Bridges * You can use [Wormhole's PortalBridge](https://portalbridge.com/advanced-tools/#/transfer). #### Assets


Classic	/files/kyzj1Tey8DhRb82swXCg /files/qxaQyLHdOKIEmG6Wqjbs

### JRT (legacy token) JRT (Jarvis Reward Token) is natively deployed on Ethereum and bridged to various networks.

Network	Address
Arbitrum	0x6aa3…5e7e
BNB Chain	0x414f…71e0
Ethereum	0x8a9c…343a
Gnosis Chain	0xccf1...ddb1
Optimism	0x15e7…5e76
Polygon	0x596e…a8c5

#### Bridges * You can use the native bridges of [Polygon](https://wallet.polygon.technology/login?redirectTo=%2Fpolygon%2Fbridge), [Arbitrum](https://bridge.arbitrum.io/) and [Optimism](https://app.optimism.io/) to bridge JRT from Ethereum. * You can use [Wormhole](https://www.portalbridge.com/#/transfer) to bridge JRT from Ethereum to BNB Chain. * You can also use [Jumper](https://jumper.exchange/). #### Assets


Classic	/files/K7F7fR2m1xUgf02MlZz3 /files/GyMNAxOMEWP1yJSHITsH

# Treasury The treasury is operated by a 5/8 community-owned Gnosis Safe for each network.


Arbitrum	0x39BA..4682
Avalanche	0x2507...A434
BNB Chain	0x3832...cfBc
Ethereum	0x2CA7...Edc9
Gnosis Chain	0xaE10...4A25
Optimism	0x40bd...d9FA
Polygon	0x2709...5A68

### Bundle Bundles allow following the treasury assets and activity. * [Zapper](https://zapper.xyz/bundle/0x2709fa6fa31bd336455d4f96ddfc505b3aca5a68,0x2ca74be68f0a0e053f030d143c1376806babedc9,0xae1026699f47b1fc572d65e1784b12c3a2574a25,0x38329f26a075d53324efd6e5f53869354fa1cfbc,0x2507a0d8e2abe9464ba2d9ddca38a5ee5e60a434,0x40bd131fa9933d592344783e38f0c0f27767d9fa,0x39bafa9f4c4dce3eac9333ceb7feec03c9dd4682?label=Jarvis%20Network%20Treasury\&id=0xe3b81ff1bb94ea8dffd3b0014e61d8e8efecd53a) # Farming FRT Future Reward Token (FRT) is used to incentivize liquidity and the usage of the protocol. FRTs can be traded or redeemed at their expiry date (a season usually lasts 3 monts), for its underlying assets (the backing), held in the Reward Contract. After each season, a new FRT is launched with new backing. FRTs are distributed through [Merkl](https://app.merkl.xyz/). # FRT01 FRT01 season starts the **5th of June 2025 and ends the 5th of September 2025**. 98 FRT01 can be earned by participating in the several **Merkl campaigns** on Base. FRT01 can be claimed directly in your [**Merkl dashboard**](https://app.merkl.xyz/). To earn FRT01, users simply need to do the following actions (no staking is required): {% hint style="danger" %} **Before participating in any of these campaigns, make sure to understand the risks associated with each of these.** {% endhint %} ### Lend jEUR on Morpho Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/ERC20LOGPROCESSOR/0x13f9e48e5240bA49F1f1838c81c6eB79c27FD467). **12.25 FRT01** can be earn by users depositing jEUR in the Morpho Vault. In addition to that, users earn interests on their jEUR. This campaign rewards providing liquidity for lenders, by depositing jEUR into the Jarvis jEUR Morpho Vault. The vault then lends jEUR to various isolated markets. The vault is owned by the Jarvis DAO and curated by Jarvis LTD. {% hint style="warning" %} Visit [this page](/protocol-overview/lending-on-morpho) to know more about the collateral accepted and [this page](/protocol-overview/lending-on-morpho) to know more about the risks associated with lending through the vault. {% endhint %} ### Lend USDC on Morpho Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/ERC20LOGPROCESSOR/0xF6190F97f7AE540234f5924B8992b9C3FD8381b9). **12.25 FRT01** can be earn by users depositing USDC in the Morpho Vault. In addition to that, users earn interests on their USDC. This campaign rewards providing liquidity for lenders, by depositing USDC into the Jarvis USDC Morpho Vault. The vault then lends jEUR to various isolated markets. The vault is owned by the Jarvis DAO and curated by Jarvis LTD. {% hint style="warning" %} Visit [this page](/protocol-overview/lending-on-morpho) to know more about the collateral accepted and [this page](/protocol-overview/lending-on-morpho) to know more about the risks associated with lending through the vault. {% endhint %} ### Hold YT Super jEUR on Spectra Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/ERC20LOGPROCESSOR/0xf8B2f672B80bd1a311a8c78B53621154779d1c51). **12.25 FRT01** can be earn by simply users holding YT sjEUR. In addition to that, users earn the yield attached to their YT. This campaign rewards speculating on yield of the Super jEUR. Buy buying a YT token, users take the bet that the yield generated by corresponding Super jEUR will remain the same or will increase. {% hint style="info" %} Note that the price of a YT token tends towards 0 as the maturity approaches. Users will realize a profit only if the yield cumulated throufgh the whole period is above the cost of purchasing the YT token. {% endhint %} {% hint style="warning" %} YT tokens are minted though the [Spectra protocol](https://www.spectra.finance). Make sure to understand how YT tokens and the Spectra protocol work before participating in this campaign. YT sjEUR are a derivatives on the top of Super jEUR. Visit [this page](/protocol-overview/super-jfiats) to know more about the risks associated with Super jEUR. {% endhint %} ### Provide liquidity in the jEUR/USDC pool on Uniswap Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/UNISWAP_V4/0xdf02fed31389c511ad43623a2aa57c6adeb019bb66c1b56b33a924e14d52dd35). **12.25 FRT01** can be earn by depositing jEUR and USDC in the Uniswap pool. In addition to that, users earn the trading fees generated by the pool. This campaign rewards providing secondary market liquidity for jEUR, using concentrated liquidity pool. ### Provide liquidity in the FRT01/USDC pool on Uniswap Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/UNISWAP_V4/0xbe8e342e6d8c7b90810be1cb5b6b5ba7f23f1e4b5b432386db996bf78f817f66). **12.25 FRT01** can be earn by depositing FRT01 and USDC in the Uniswap pool. In addition to that, users earn the trading fees generated by the pool. This campaign rewards providing secondary market liquidity for FRT01, using concentrated liquidity pool. ### Provide liquidity in the USDC-jEUR-vlp/USDC pools on Uniswap VLP tokens represent EURUSD short position with a variable leverage. In order to get the USDC-jEUR-vlp tokens, users first need to deposit USDC inside the corresponding liquidity vault by [visiting this page](https://jarvis.money/liquidity/public). {% hint style="info" %} VLP tokens have a 2 hours timelock: users will not be able to transfer their tokens before the 2 hours period has expired. Which means that users will not be able to provide liquidity in the Uniswap pool, or exit their position, before the 2 hours window expires. {% endhint %} These campaigns reward providing primary market liquidity for jEUR, using EURUSD short leveraged position. {% hint style="warning" %} Visit [this page](/protocol-overview/minting) to learn more about the way our vlp token work, and the risk associated with being a liquidity provider within the Jarvis protocol. {% endhint %} There are thre campaigns: #### USDC-jEUR-vlp-200 Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/UNISWAP_V4/0x0631955869c4f9db16a60499c09700c27dc12a7ee0655de9a92c9ab11fc42581). 6.125 FRT01 can be earn by depositing USDC-jEUR-vlp-200 and USDC in the Uniswap pool. In addition to that, users earn trading fees generated by the pools, and the yield generated by the USDC-jEUR-vlp-200 token. {% hint style="info" %} This token is a EURUSD short position, with a variable leverage from 0 to 1. It carries the lowest risk of all the VLP tokens. {% endhint %} #### USDC-jEUR-vlp-150 Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/UNISWAP_V4/0x64226e156a7c23d565efd1905ded09ae3b2548df27c884751c0a0853a5fc7678). 12.25 FRT01 can be earn by depositing USDC-jEUR-vlp-150 and USDC in the Uniswap pool. In addition to that, users earn trading fees generated by the pools, and the yield generated by the USDC-jEUR-vlp-200 token. {% hint style="info" %} This token is a EURUSD short position, with a variable leverage from 0 to 2. {% endhint %} #### USDC-jEUR-vlp-200 Visit the [Merkl campaign page](https://app.merkl.xyz/opportunities/base/UNISWAP_V4/0x9f5c830222a7b43fbac0ef41ecd01c991300d3ce697346de086c9d4a7f43442f). 6.125 FRT01 can be earn by depositing USDC-jEUR-vlp-200 and USDC in the Uniswap pool. In addition to that, users earn trading fees generated by the pools, and the yield generated by the USDC-jEUR-vlp-200 token. {% hint style="info" %} This token is a EURUSD short position, with a variable leverage from 0 to 5. **It carries the highest risk of all the VLP tokens**. {% endhint %} # Audits {% hint style="danger" %} Audits do not guarantee that a code is bug-free. {% endhint %} Synthereum has been internally and externally tested and audited. ### External audits #### Synthereum v1 * Halborn: [Forked UMA contracts](https://bit.ly/Fork-UMA-Synthereum-Audit-Halborn) * Halborn: [Synthereum Liquidity Pools](https://bit.ly/Synthereum-Audit-Halborn) * Ubik: [Synthereum Liquidity Pools](https://gitlab.com/jarvis-network/apps/exchange/mono-repo/-/blob/dev/docs/security-audits/ubik/01-synthereum-v3.pdf) #### Synthereum v2 * Zellic: [Synthereum Liquidity Pools ](https://gitlab.com/jarvis-network/apps/exchange/mono-repo/-/blob/dev/docs/security-audits/zellic/%5BZellic%5DSynthereum%20Smart%20Contract%20Security%20Assessment.pdf) ### Bug bounty Synthereum will soon open a $50k public bug bounty on Immunefi. # Risks {% hint style="danger" %} This page highlight a non-exhaustive list of identified risks. Please, be aware that interacting with Synthereum and any other protocol carry risks of losing part or all your funds. Only invest using money that you are comfortable with losing. {% endhint %} {% hint style="info" %} For Liquidity Provision related risks, please read the [following section](https://learn.jarvis.network/protocol-overview/minting#risks-associated-with-being-a-lp). {% endhint %} ### Software risks To interact with the protocol, you may use an interface comprising a front end and a back end that may suffer from a degradation in performance which may result in losses. More specifically, such degradation may: * slow down the platform or makes it inaccessible; * display inaccurate and misleading data; * make performing an operation slower. ### Cryptocurrency risks If you lose access to your private key or seed phrase or if it becomes compromised, you will permanently lose access to your funds, or your funds could be stolen. When interacting with cryptocurrencies, you safeguard your private keys, seed phrases, or any recovery method. You must be aware of common attacks such as phishing emails, websites or applications, keyloggers, etc. ### Trading risks Trading is a risky activity that can lead to losing all your funds. Trading may also create addiction. Please consult a professional who might advise you on whether or not trading fits your financial profile and personality. ### Protocol risks The Synthereum protocol is a set of smart contracts holding users' and liquidity providers' funds and is secured using Chainlink's oracle. #### Smart contracts risks * smart contracts can carry issues that can be exploited, whether maliciously or by accident, leading to the partial or total loss of your funds; * you need to authorize a smart contract to interact with your tokens by giving it an allowance; allowance can be given for a specific or unlimited amount; if you were to give an unlimited allowance to a smart contract, and if the latter is being exploited, it could steal the tokens which were given an unlimited allowance. A security breach or a hack is irreversible. It leads, in most cases, to the total loss of the funds without the possibility of recovering them through legal means or insurance. There cannot be bug-free software despite respecting all the development best practices and running multiple security audits. #### Protocol design risks Besides technical risks, the way the protocol is designed involves economic risks. * Suppose the health ratio of all the positions in a pool is under the minimum health ratio. In that case, the virtual liquidity will be zero, and no more jFIATs can be bought through this pool until the situation is resolved. If all the pools providing liquidity to a certain jFIAT become in this situation, this particular jFIAT could no longer be bought through this method. This could complicate arbitrages or liquidations or, under some circumstances, make them impossible. This could impact the stability and liquidity of the jFIATs. * If the smart contracts or the money market where the jFIATs printed are deposited is exploited, the jFIATs may end up in the circulating supply; in that case, there would be uncollateralized jFIATs in circulation. * Oracle price updates could be front-run under certain circumstances. This could lead to a malicious actor knowing the future price and performing a profitable trade at the expense of the liquidity providers if the difference between the two prices is bigger than the trading fees. * The liquidity deposited by liquidity providers can become locked, leading to the impossibility for users to withdraw their funds. The liquidity can be locked in the case when the liquidity of the protocol or of the underlying money market is fully utilized. #### Emergency shutdown risks Synthereum protocol has an emergency shutdown mechanism for each module, that can be triggered in case of a security threat or malfunction of the protocol. Once a module is shut down, it enters in "redemption mode", allowing anyone to liquidate any position, without any penalty fee. #### Chainlink oracle and on-chain price feed risks The Synthereum protocol uses Chainlink oracle, which provides on-chain price feeds for executing trades. Chainlink aggregates the prices from multiple data providers and data sources in a decentralized and trustless way to ensure that the prices you are trading at cannot be altered and that the price feed is never down. This enables trust between the counterparties involved in the trade since they are sure that either counterparty cannot manipulate the price feed and that the latter is always accessible. Chainlink has a proven track record demonstrating that even in cases where the Blockchain was congested, they kept updating the prices successfully and on time. Even though Chainlink is a trusted and battle-tested solution, it cannot guarantee that no issue causing users to lose funds will not happen. * Because transactions on a Blockchain are not instant, it is possible that the price changes between the time a trade is requested and the time it is executed, causing the user to trade at a better or worse price. This is called slippage. * On-chain price feeds are not in real-time. They are updated every time the underlying asset's price moves by a certain threshold (0.1% for most jFIATs). It means that users may be unable to trade at the real market price, which in some cases may prevent them from buying, selling, or exchanging at a more favorable price. * On-chain price feeds are updated when the underlying market price moves by at least the threshold. The difference between two price updates can be way more important than the threshold. This could lead to a malicious actor trying to front-run the oracle price update or prevent users from transacting at a better price. * On-chain price feeds require a transaction on the Blockchain to update the price. When the network is congested, these updates could take longer to complete, which may prevent users from buying, selling, or exchanging at the most up-to-date prices. * On-chain price feeds can accidentally or maliciously provide an incorrect price, which in some cases could occur losses to the users, the liquidity providers, or the protocol. {% hint style="info" %} Read more about Chainlink: {% endhint %} #### Aave risks The collateral of the jFIATs minted through Liquidity Pools, Credit Lines, or Wrappers is deposited within Aave v3. This creates two main risks: * Suppose most of the assets deposited by Synthereum in Aave are borrowed (liquidity crisis due to over demand or to a bank run). In that case, it could make redeeming jFIATs for their collateral impossible. The total amount of collateral that can be redeemed is limited to the total liquidity available on Aave v3 for this collateral. * In the case the Aave protocol is exploited, the collateral behind each jFIAT could be stolen, leaving jFIAT without any collateral or with partial collateral. #### Fiat-backed collateral risks jFIATs are mainly backed by fiat-backed stablecoins (USDC, BUSD, EURe, etc.). These stablecoins are issued by regulated entities in the US or Europe and therefore carry regulatory and censorship risks. For example, Circle, the company issuing USDC, could decide or be forced to blacklist Synthereum’s contract, making minting and redeeming impossible and therefore causing the value of jFIATs to drop to 0. In addition to these risks, each collateral carries its own risk. USDC and BUSD are not fully collateralized by US dollars but rather by a mix between US dollars (cash deposit) and US treasury bills. Each month, [Circle publishes a monthly attestation on its website](https://www.circle.com/en/transparency#stability) stating that the value of the collateral exceeds the value of the USDC in circulation and a monthly reserve report to share the allocation of the collateral. Paxos is also publishing a monthly attestation on its [website](https://paxos.com/attestations/). For example, as of August 2022, Circle announces that USDC is backed at 22% by cash and cash equivalent, the rest being comprised of Certificates of Deposit issued by non-U.S banks, U.S. Treasuries, commercial paper, and municipal and corporate bonds. If USDC's collateral happens to be worth less than a dollar, it could cause the value of jFIATs to drop. Fiat-backed stablecoins have been chosen as they provide the deepest liquidity and the most robust peg to the dollar. USDC and BUSD have been chosen for their liquidity over other audited fiat-backed stablecoins. Fiat-backed stablecoins have been selected over decentralized stablecoins as it is easier to anticipate their regulatory and centralization risks than the technical and systemic ones that decentralized stablecoins carry. **However, the goal of Synthereum is to be fully decentralized; therefore, USDC may eventually be replaced by a more censorship-resistant stablecoin**. {% hint style="info" %} Learn more about USDC: {% endhint %} ### Blockchain risks Synthereum is deployed on multiple networks that can become congested, leading to making it impossible to perform a transaction on time. This could occur a loss to users. #### Centralisation risks Several networks on which Synthereum is deployed are still in the process of progressive decentralization. As of now, many of these networks are secured or managed by a multi-signature setup which carries several risks: * there is no way to know if different persons hold the keys; * there is no way to know if the keys have not been compromised or shared; * keys holder(s) could decide, or could be forced to, access to all funds of the network and can bypass the security of the consensus mechanism.