The Wrappers are smart contract to convert one stablecoin into its jFIAT’s equivalence.
Users can wrap an approved fiat-backed stablecoin into its jFIAT equivalent and vice versa, at a 1-to-1 ratio, without any fee.
ExampleA user can wrap 10,000 EURe into 10,000 jEUR, or unwrap 1,000 jCAD into 1,000 CADC.
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.
ExampleUsers have wrapped 50,000 XSGD into 50,000 jSGD. Therefore, a maximum of 50,000 jSGD can be unwrapped.
Fixed exchange rate jFIATs are stablecoins tracking the price of currencies pegged to another one.
ExampleThe 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.
ExampleA user can wrap 100 jEUR into 65,600 jXAF or jXOF.
The collateral is lent on money markets. The protocol's treasury receives all the interests generated.
The governance can pause the wrapping of a Wrapper.