Since jFIATs can be bought with and sold for USDC 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 USDC (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 USDC (burning), and then the USDC is swapped for the other token on the AMM; to swap a token for jFIATs, the token is first swapped for USDC, 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 USDC and this token.
As consequence, jFIATs leverage the USDC liquidity and network effect, allowing them to be very scalable: they can be deployed and be liquid on any chains where USDC is:
jFIATs are as liquid as USDC; since USDC is the most liquid USD-stablecoin on AMM, it helps jFIATs to be the most liquid non-USD stablecoins.
jFIATs can be deployed wherever USDC is; since USDC is deployed on multiple blockchains, jFIATs can be deployed on multiple chains easily.
On-Chain Liquidity Router
These swaps utilize USDC as a "liquidity router" that connects the liquidity of one jFIAT to another. This feature is therefore called "OCLR", for On-Chain Liquidity Router.