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Bitzo 2025-01-22 09:19:42

Jellyverse Introduces jAssets: A New Synthetic Assets Protocol

Community-driven decentralized finance (DeFi) platform Jellyverse , based on the Sei Network (SEI), is introducing its own synthetic assets protocol called jAssets. In an announcement dated January 21, it was revealed that jAssets will enable users to create their own synthetic asset tokens, which will closely mirror the value of real-world assets. These tokens will be linked to traditional assets such as stocks, commodities, and precious metals. Jellyverse decided to proceed with this new feature after a proposal received a favorable response in a vote held by the protocol's decentralized autonomous organization (DAO). By locking up cryptocurrency as collateral, users can mint jAssets, allowing for a diversified on-chain portfolio. Benedikt Keck, a co-founder at Jellyverse's developer Blkswn, stated that the new product will enable “portfolio diversification in DeFi by providing a variety of innovative investment strategies, including long, short, and leveraged positions.” The protocol will also support multi-collateral troves, accepting “wETH, wBTC, JLY, SEI, USDC, USDT, FRAX, or GEM, or a mix of these assets as collateral,” he noted. To secure the value of synthetic assets and protect the protocol from asset loss, Jellyverse utilizes decentralized oracles and over-collateralization, ensuring that the collateral exceeds the value of synthetic assets. These oracles are based on the Pyth Network (PYTH). A blockchain oracle is a service that supplies external, real-world data to a blockchain, permitting smart contracts to operate based on this information. Typically, smart contracts within the DeFi sector cannot directly access data from outside the blockchain. Oracles act as a conduit, delivering current data—such as real-world asset pricing—to the blockchain. However, they can also be a single point of failure in a decentralized system, which is why significant efforts have been directed towards creating decentralized oracles like Chainlink (LINK) and Pyth Network. Jellyverse operates on the Sei Network, a layer one blockchain equipped with parallel Ethereum Virtual Machine (EVM) execution. This setup allows smart contracts, crucial to the DeFi ecosystem, to execute faster, facilitating quicker trades. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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