Since jFIATs can be bought with and sold for USD without price impact enables Forex and cross-asset swaps with little to no price impact.
On-chain Forex swap
By combining a burn and a mint, it is possible to perform an on-chain Forex swap between jFIATs without price impact.
To swap one jFIAT for another one, the first jFIAT is sold for USD (burning), which is then used to buy the other jFIAT (minting); the two transactions happen without price impact.
By combining a burn or mint, and an AMM swap, it is possible to perform swaps between jFIATs and any other token, without having the need to create liquidity for any jFIAT on an AMM.
To swap jFIAT for a token, the jFIAT is first sold for USD (burning), and then the USD is swapped for the other token on the AMM; to swap a token for jFIATs, the token is first swapped for USD, which is then used to buy jFIATs (minting).
Because the minting and burning happen without price impact, any swap between a jFIAT and another has the same price impact as if it was a swap between USD and this token.
As a consequence, jFIATs leverage the collateral's liquidity and network effect, allowing them to be very scalable: they can be deployed and be liquid on any chains where USD is:
jFIATs are as liquid as their collateral.
jFIATs can be deployed wherever these collateral are.
On-Chain Liquidity Router
These swaps utilize USD as a "liquidity router" that connects the liquidity of one jFIAT to another. This feature is therefore called "OCLR", for On-Chain Liquidity Router.