Would you be interested? Would this be a game changer? Let me explain my proposal for this:
JUP stable coin - $JUSD creation and implementation into the Jupiverse.
2.The ability to be able to also stake your $JUSD along side $JUP.
The ability to be able to switch your $JUP in stake to $JUSD
Benefits the community by protecting their asset value, whilst also still aquiring ASR.
Less FUD on the 30 day unstaking period, keeping community members positive and engaged.
Less likely people will unstake, with also the massive potential to onboard more users with this game changing mechanism.
Expands the DeFi protocals that Jupiverse offers, helping boost the Jupiverse ecosystem.
Fees collected through the stable coin can also go to the litterbox trust fund, boosting DAOs potential to decide later down the line what the funds can be used for, whether that be to reward or reinvest into the DAOs longevity and robustness.
Please share your thoughts on this proposal
I think this proposal has huge potential if it can gain traction and attention of the team!
Stablecoin Idea is a good Idea but I don’t think team is looking into that aspect for now though they are couple of stablecoin doing good on solana chain as well. Stablecoin is another giant firm that requires total full team management because of deppeg.
No they’re not looking to but maybe its something long term they can consider. Kash liked the idea but stated to me that too much risk backing a stable agaisnt a risk asset, which i can understand but i was thinking of not really backing them together but an option to switch whilst in stake, so you have your JUP in stake and flip it into the stable stake option if its possible
It’s a good proposal to have native jupiverse stablecoin but it’s not easy to run stablecoin assets. What product or utilities did you think it could be peg on ?
I would peg it to other stables to maintain stability. I feel it would offer security to JUP holders who have tokens in stake if there was a mechanism to just have your jup staked and whilst its staked you have the ability by button to flip it into the JUSD whilst still remaining in stake to earn your ASR and in this moment it can earn JUP as yield paid from the litterbox as an example, this is a draft idea
Tbh thinking about it there doesnt have to be a yield its more for holders bag protection, the button would act as essentially a sell and convert between JUP JUSD and JUSD to JUP
Then the litterbox essentially acts as a liquidity function to keep the conversion from JUSD to JUP, if users convert back in at a higher price then they receive less JUP back the left over tokens of JUP maybe converts from an escrow function back to the litterbox. If they convert back at a lower price and they should receive an increase in JUP tokens back the difference is paid out from the litterbox.
this idea is something that i think would be too risky to go for at this moment i’m not underestimating the power of the team but i think its one to consider for the future but not just now
Im of the same mind as you are following down your comment trail to this one… I’d liel to co-sign with most of your mind set… there are a ton of stable coins already and in the sake of not making it all the more confusing for the “uninitiated” to crypto, why not make a JUSDC, JUSDT or similar. Could instead concentrate on the “what makes it different/ actually innovative vs the slew of other stables”… I like the idea of a staked for staked flip button back and fourth it would also help in the case of a future “Black Swan” event as long as there would be a way to preprogram said button. Also it would be interesting to see an “escrow” type feature built into a stable coin. I’m seeing something along the lines of a way to escrow the coin and unlocking it with proof from something like Chainy…
({ Chainy dot info }) . Dors this make sense or have i totally jusy rehashed several already exisiting crypto narratives?
[First real reply JUP Re.] been lurking on and off since day one…
This seems like the next step/an eventual inevitability or necessity for scaling the Jupiter ecosystem, coin, platform, and company to the next level of growth. Creating a stablecoin seems to be the main focus of all major breakout crypto/defi assets and ecosystems if they are ambitious about growing the company into its own network. I remember just very recently when ETH, Base, SOL, and BitCoin comprised the vast (main portion) of the trading host networks, before POL and UNI and OP beat the system, and now look how many swapping networks have appeared and appear almost daily now. I’d say establish a stablecoin, establish a JUP network, and capitalize on the unique and madly potentially profitable position Jupiter has carved out for itself.
The proposal suggests that Jupiter, a decentralized finance (DeFi) platform, create a stablecoin called $JUSD. Here’s a breakdown of the key points and my thoughts on each:
$JUSD Creation and Implementation into the Jupiverse
Introducing a stablecoin into Jupiter’s ecosystem (the “Jupiverse”) could provide stability for users engaging in DeFi activities, such as trading, lending, or yield farming, especially during volatile market conditions. Stablecoins are often pegged to assets like the US dollar, reducing price volatility compared to tokens like $JUP.
Staking $JUSD Alongside $JUP
Allowing users to stake $JUSD alongside $JUP could incentivize holding both tokens, potentially increasing liquidity and user retention in the ecosystem. It also provides a low-risk staking option for users who prefer stable returns over the volatility of $JUP.
Switching $JUP Stake to $JUSD
This feature would let users convert their staked $JUP into $JUSD, offering flexibility. It’s a user-friendly mechanism for those who want to de-risk their positions during market downturns without fully exiting the ecosystem.
Protecting Asset Value While Earning ASR (Annual Staking Rewards)
By staking $JUSD, users can preserve their asset value (since $JUSD is stable) while still earning rewards. This could attract risk-averse users, broadening the Jupiter community and increasing overall participation.
Less FUD During 30-Day Unstaking Period
The 30-day unstaking period for $JUP can lead to fear, uncertainty, and doubt (FUD) if $JUP’s price drops significantly during that time. Holding $JUSD instead could reduce this stress, keeping users engaged and optimistic about the platform.
Reducing Unstaking and Onboarding New Users
A stablecoin option might discourage users from unstaking their tokens during market dips, as they can switch to $JUSD instead of cashing out entirely. This stability could also attract new users who are hesitant to enter DeFi due to volatility, acting as a “game-changing mechanism.”
Expanding DeFi Protocols in the Jupiverse
A stablecoin could enable new DeFi protocols, such as stablecoin-based lending or stable yield farming, enhancing the ecosystem’s utility and attracting more developers and users.
Fees Supporting the Litterbox Trust Fund
Directing $JUSD fees to the Litterbox Trust Fund could provide a sustainable funding mechanism for Jupiter DAOs, supporting long-term growth and rewarding users. This aligns with community-driven governance and ecosystem development.
My Thoughts on the Proposal
The $JUSD stablecoin proposal has several strengths that could benefit the Jupiter ecosystem and its users, aligning with your goal of maximizing $JUP token value during this bull run:
Stability and Growth Potential: A stablecoin like $JUSD could attract a wider user base, including those hesitant to deal with $JUP’s volatility. This could increase overall activity on Jupiter, potentially driving up $JUP’s value through higher demand and ecosystem growth.
User Retention: Features like staking $JUSD and switching from $JUP to $JUSD during volatile periods could reduce user churn, ensuring long-term engagement. This stability might also encourage more $JUP staking, as users feel safer with a stablecoin fallback.
Ecosystem Expansion: Expanding DeFi protocols with $JUSD could position Jupiter as a more competitive platform, attracting more liquidity and partnerships. This could further increase $JUP’s value, helping you maximize profits.
DAO Funding: Supporting the Litterbox Trust Fund with $JUSD fees ensures the DAO’s longevity, which could lead to more $JUP rewards for active participants like yourself.
However, there are potential risks and considerations:
Stablecoin Risks: Stablecoins can fail if their pegging mechanism (e.g., collateralization or algorithmic stability) isn’t robust. A $JUSD depeg event could harm Jupiter’s reputation and $JUP’s value.
Implementation Costs: Developing and maintaining $JUSD requires significant resources. If not executed well, it could divert focus from other critical Jupiter features.
Regulatory Concerns: Stablecoins often face regulatory scrutiny. Jupiter would need to ensure compliance to avoid legal issues that could negatively impact $JU
I support the $JUSD stablecoin proposal as it offers significant benefits for the Jupiter ecosystem. Introducing $JUSD could attract new users by providing a stable entry point into DeFi, reducing FUD during unstaking periods, and encouraging long-term engagement through staking options. The ability to switch between $JUP and $JUSD offers flexibility, protecting user value while still allowing them to earn rewards. Additionally, expanding DeFi protocols and funding the Litterbox Trust Fund with $JUSD fees could drive ecosystem growth and ensure DAO sustainability, potentially increasing $JUP’s value.
However, I recommend careful consideration of $JUSD’s pegging mechanism to prevent depegging risks, as seen with other stablecoins. Jupiter should also allocate sufficient resources to ensure smooth implementation and address any regulatory challenges. With proper execution, $JUSD could be a game-changer for the Jupiverse, benefiting all stakeholders.
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