Proposal for $JUST: Jupiter Universal Stable Token

[Jaam]

Motivation:

The Jupiter ecosystem has grown into one of the most robust DeFi platforms on Solana. Yet, it lacks a native, DAO-governed stablecoin that:

• Anchors stability within the ecosystem,

• Generates yield to strengthen the DAO’s warchest,

• Expands governance utility for JUP token holders.

JUST (Jupiter Universal Stable Token OR Just Use Jupiter Stablecoin) is designed to fill this gap. By combining a diversified collateral model, a Peg-Stability Module (PSM), and yield strategies directly tied to Jupiter products, JUST is not just another stablecoin — it is a financial engine purpose-built for Jupiter.

Specifications:

Collateralization Model

Target allocation for JUST’s collateral:

• 25% JupSOL – liquid staking derivative of SOL, aligned with Jupiter and Solana.

• 10% JLP Tokens – yield-bearing LP positions, reinforcing Jupiter’s core liquidity and enhancing stablility.

• >55% USDC and/or USD1 (via Peg-Stability Module) 1:1 USDC/USD1↔JUST swaps stabilize the peg and add highly liquid reserves.

  • Why include USD1? As a Solana-native stablecoin, USD1 strengthens Solana’s monetary layer while reducing reliance on external issuers. Blending USDC with USD1 diversifies centralized counterparty risk while keeping stability capital “at home” within Solana.

• 3-5% Basket of Memecoins (e.g., WIF, BONK, PENGU) – small but intentional exposure to high-liquidity, community-driven Solana tokens.

• 5-7% Flexible / TBD Assets – room for governance to adapt collateral to new opportunities (e.g., zBTC, ETH derivatives, RWAs).

Peg-Stability Module (PSM)

• Allows arbitrage of JUST against USDC/USD1 at a fixed 1:1 rate.

• DAO controls swap fees, caps, and thresholds turning stability management into a governance revenue lever. (Ideally, 0 fee to swap USDC/USD1 into JUST- only fees to swap back from JUST to USDC/USD1)

• Modeled similarly after Maker’s DAI PSM.

Partnerships

• Zeus / zBTC: Bringing Bitcoin collateral to Solana. Joint marketing + liquidity efforts could increase BTC inflows and adoption of both zBTC and JUST.

• Huma Finance: Lending/credit-focused platform that expands yield sources into real-world and credit markets. JUST provides Huma with a DAO-governed stablecoin, while Huma provides Jupiter with access to new yield streams. This would also concrete our relationship with HUMA even further.

Yield Generation

• Jupiter Lend Integration: JUST deposits into lending pools generate Solana-native yield.

• Collateral Yield: JupSOL and JLP accrue staking/liquidity rewards.

• Liquidity Provision: DAO-directed deployment of collateral earns AMM fees.

• PSM Fees: Swaps out of JUST into USDC/USD1 generate low-risk, continuous income.

All net yield flows back to the DAO, where it can be allocated to:

• JUP buybacks

• DAO treasury growth (long-term sustainability).

Governance

JUST expands DAO utility by giving JUP holders authority over:

• Collateral allocation and adjustments.

• PSM parameters.

• Yield deployment strategies.

• Memecoin basket selection/rotation.

This creates meaningful participation; DAO decisions directly impact peg stability, yield, and treasury growth. Greater responsibility → greater value for JUP governance.

Rationale:

JUST is designed with Jupiter’s ethos in mind:

• Ecosystem-first: Keeps liquidity and yield circulating within Jupiter products.

• Diversified & Resilient: Balanced collateral across SOL, stablecoins, memecoins, and BTC/Others.

• Innovative: Memecoin basket + flexible allocation differentiates JUST from Maker’s DAI or other stables. This basket also acts as a culture-aligned governance tool, letting the DAO dynamically choose community tokens to represent in collateral, driving engagement and visibility.

• Governance-Centric: Expands the scope and importance of DAO decision-making. The more levers JUP holders control (collateral, PSM, baskets), the more sticky governance becomes, reinforcing community engagement and governance token value.

• Value-Accretive: Yield directly funds buybacks and treasury growth.

Risks:

• Collateral Volatility: JupSOL, JLP, and memecoins can introduce volatility. Mitigated by high collateral ratios and diversified basket.

• PSM Overreliance: Heavy use of the PSM could expose the DAO to centralized stablecoin risk. Mitigated by governance control of caps and fees.

• Governance Complexity: Expanding DAO authority requires active participation. Risk is offset by increased incentives for governance engagement.

• Regulatory Considerations: Legal reviews will be required given the evolving stablecoin regulatory environment.

Implementation:

Budget Estimate (~$450k-$550k)

• Development: $200-300k (contracts, collateral management, PSM integration).

• Audits: $75k (multiple rounds, high-priority).

• Legal/Compliance: $30k (initial analysis, jurisdictional assessment).

• Infrastructure: $75k (oracles, backend systems, monitoring).

• Marketing: $70k (community education, partner integrations, branding).

Responsible Parties

• Jupiter Core Team (or a selected development partner) for implementation, accountable to the DAO.

• DAO oversight through milestone-based funding.

Timeline

1. Research & Design: 1–2 months.

2. Development & Internal Testing: 3–4 months.

3. Audit & Bug Bounty: 1–2 months.

4. Launch Phase (governance-controlled): DAO votes on collateral ratios + PSM parameters at genesis.

Conclusion:

JUST is not “just” a stablecoin. It is a strategic foundation for Jupiter’s growth:

• Anchors stability

• Generates sustainable yield

• Deepens governance

• Accrues value to JUP

• KEEPS the value brought into Solana ecosystem within the Jupiverse

By integrating collateral diversity, USDC/USD1’s Peg-Stability Module, zBTC through Zeus, and yield opportunities via Huma Finance, JUST positions Jupiter as a leader in stablecoin design and DAO-driven innovation.

JUST = Just Use Jupiter.

[Bluebird]

Having JUST as a future plan is a good plan, stablecoin infrastructure not bad.

[lochie2001]

We don’t need anyone tokens until we get the ones we have right

[andrewsaul]

This is an interesting proposal.
It is missing one key part though: Where would the demand come for this token?

Typically most of the users Jupiter has do not hold stablecoins as they are speculation focused. They instead do stuff like:

• stake JUP in hopes it will go up/for ASR rewards
• hold BTC derivatives in hopes they will go up/for incentives
• hold/loop jupSOL/JLP to collect yield

Two of your proposed tokens, jupSOL and JLP, would be less effective in this mechanism than they are currently in looping strategies on places like Kamino. Why would I as a holder of jupSOL/JLP deposit them into JUST as opposed to looping them on Kamino (or a similar defi protocol)?

What would I use JUST for that I was previously using USDC, USDT or even pyUSD for?

You use DAI as an example, and whilst DAI has only a fraction of the overall stablecoin market it has driven usage via it’s long standing defi integrations (which took years to build) and the DSM (DAI saving module). sDAI is key driver of demand for DAI as it offers a competitive rate for stablecoin yield.

What are the initial key drivers of demand for JUST? Incentives may not work.

PayPal spent millions incentivising pyUSD and have seen little organic demand continue once those ended. At least in the case of pyUSD it is integrated into one of the largest digital payment networks in the world.

[Saltnation]

That’s a great question. I hope he finds a good answer because there are already many tokens you can hold to earn yield. We even have Jupiter Lend USDT. So where will the demand for this come from?

[Jaam]

I really appreciate you taking the time to read the proposal and ask very key questions, which I hope to address. It’s true that most current Jupiter users are speculation-driven either with staking JUP for ASR rewards, or looping JupSOL/JLP on Kamino, so why would someone choose JUST instead of continuing those strategies, or why would they use JUST over USDC/USDT that already exist?

The answer lies in three distinct advantages:

1. Utility Beyond Speculation

JUST isn’t trying to replace speculative loops, it’s the stable denominator that the Jupiter ecosystem currently lacks. It provides a Solana-native settlement and collateral layer that keeps value inside Jupiter, instead of flowing out to Circle or Tether. In practice, that means when someone exits a speculative position or provides liquidity, they can rotate into JUST rather than an external stable, reinforcing Jupiter’s internal economy.

2. Competitive Yield Through Overcollateralization

Unlike USDC or USDT, JUST is overcollateralized with yield-bearing assets (JupSOL, JLP, zBTC, memecoins, etc.). That means the stablecoin itself can deliver competitive returns to holders:

• JupSOL → staking rewards.

• JLP → liquidity provision yield.

• zBTC / ETH derivatives → external yield streams.

• Memecoin basket → optional upside + culture/project engagement.

This mirrors what made sDAI successful: not just being “a stablecoin,” but being a yield-generating stablecoin that could potentially outcompete passive USDC. Users don’t have to choose between “stable” and “earning”.

3. Governance & JUP Value Accrual

The key differentiator: every dollar of JUST adoption loops back into strengthening JUP stakers.

• Fees & Yield → DAO: Net income from PSM swaps, collateral yield, and integrations flows into the DAO’s treasury.

• Buybacks & Warchest: That revenue can either enhance JUP buybacks or grow reserves for sustainability.

• Governance Power: JUP stakers directly vote on collateral allocations, memecoin basket rotation, PSM parameters, and yield strategies.

This makes governance meaningful. The more JUST is adopted, the more decisions the DAO must actively manage, and the more upside governance token holders capture. This “responsibility + revenue” loop is what makes JUP more valuable to hold and stake.

A few other comparisons which were made;

• DAI / sDAI: DAI’s demand exploded only once yield (sDAI) became competitive with other stables. JUST follows that same playbook from day one, but specialized for Solana and tied to Jupiter products.

• pyUSD: PayPal spent heavily on incentives but lacked up front DeFi-native integration, only a few protocols accepted it. JUST avoids this by integrating directly into Jupiter Lend, AMMs, and liquidity pools from launch. Incentives may be useful, but they’re not the only driver, in my opinion, native integration + yield are.

Organic Demand Drivers for JUST

1. Jupiter Lend Pools: JUST-denominated lending/borrowing creates immediate utility.

2. Liquidity Incentives: JUST as a base pair on Jupiter’s AMM deepens markets and earns fees.

3. Perps Collateral Integration: JUST can be adopted as margin collateral on Jupiter’s perpetuals platform. This creates a natural demand stream from traders who need stable margin, while also aligning perp trading volume with DAO revenue capture. With competitive yield from its overcollateralized backing, JUST offers traders an advantage over traditional stables: they can hold their margin in a stablecoin that not only earns but also strengthens the ecosystem they’re trading within.

4. DAO Treasury Alignment: Users know that by holding JUST instead of USDC, they’re strengthening the DAO they participate in.

5. PSM Arbitrage: Traders can arbitrage JUST/USDC peg stability with low friction, creating a constant flow of usage.

6. Governance Levers : JUP holders can adjust collateral mix, PSM fees, and memecoin constituents and decisions that directly affect yield and stability. That’s sticky, meaningful governance.

7. Zeus / zBTC Integration: With Zeus bridging Bitcoin into Solana, JUST can tap zBTC as a collateral type. Beyond simply holding BTC exposure, joint liquidity programs with Zeus could drive BTC inflows into JUST minting, positioning JUST as a Solana-native way to hold BTC-backed stability.

8. Huma Finance Integration: JUST can be integrated into Huma’s lending/credit rails, extending its utility beyond Jupiter into real-world and off-chain yield markets. This opens a pipeline for stablecoin yield that traditional USDC/USDT holders can’t access, while concretizing the strategic relationship between Jupiter and Huma.

Final Point

Users get a competitive, yield-bearing stable asset. The DAO gets revenue. JUP stakers get both governance power and buyback support. And critically, all of this keeps value circulating inside the Jupiverse.

That’s the demand case: utility, yield, and DAO alignment. Three things no other stablecoin offers together on Solana.

[andrewsaul]

I understand the thesis of overcollateralized stablecoins and that of yield bearing stablecoins.

On that second part, due to the Genius Act US treasury backed stablecoins will less competitive by law that non-US treasury backed stablecoins as they cannot pass on yield.

I think you’ll see plenty of people work around it. BUIDL (from Blackrock) is essentially a stablecoin in many ways and it pays a yield. It’s much cheaper and easier to deploy a money market on chain than a basket of volatile assets (if you don’t care about decentralisation).

We should probably stop referencing DAI as it’s being deprecated in favour of USDS (which is the same thing). The minting mechanism for USDS is much simpler than what you’re proposing for JUST. You deposit one of a short list of whitelisted assets and you mint a percentage of that total value deposited into USDS. Sky makes money, at a basic level, both on the minting fees and on liquidations. Because you have to manage your borrowing (cause minting a stablecoin this way is borrowing against deposited assets) Sky have figured out over time that the way you can do that is keep it really simple as the process is inherently quite complex.
Are you thinking JUST would follow that model and just allow one asset deposits for each minting, or are you thinking you’d allow users to deposit a basket of assets?

You bring up a good point about forcing initial demand through Jupiter Lend. Sky, Curve and Aave do similar things for their stablecoins (USDS, crvUSD, and GHO respectively). But those are still lower percentages of overall stablecoins on all those platforms simply because the market demands the larger ones. I would assume the same would be true of Jupiter Lend who will want to be competitive so would defer mostly to the majors.

The biggest issue dencentralised stablecoins have traditionally run into is not actually usage. Once minted they normally can find users (as long as they can prove they can keep their peg). The issue is supply. You need to find users who are prepared to lock up assets in this for often a much lower yield than they can get elsewhere. The exception has traditionally been BTC. There has never much raw demand in defi for wrapped BTC assets, so yields have historically been pretty low (you can only really lend it) so it’s proved a perfect asset for things like USDS as decentralised stables are normally one of the best yields you can get for your BTC. As the staking yields on ETH have fallen to 2-3% ETH has also become a better candidate too. Both ETH and BTC have more stable prices too.
The same would probably be true of JUP as it’s a non-yield bearing token so something like JUST might be a good option (and I assume you’d use a staked version of JUP to unlock those assets). What makes JUP harder to use is the volatility. It’s very volatile so you might only be able to mint 20-40% of the value of the deposited JUP in JUST.

I still struggle to see why I would deposit my JLP or jupSOL for a much lower yield into JUST than I could get elsewhere, but here you might just need to get Jupiter themselves to pony up a bunch of the initial liquidity to get enough JUST minted.

The thing that makes all of this really hard is the peg. You trying to peg this to the value of USD. It’s really costly and difficult.

Why not lose the concept of a stablecoin? That space so crowded with so many good options to choose from. Why not compete with BUIDL instead? That is not a crowded space at all, and once you lose the requirement to have this pegged to USD you free up a lot of the constraints.
You can still use it all over the place. It’s just like JLP only without the perps risk associated.
I’ve suggested before that Jupiter Studio offer jupSOL and JLP as alternative pairs for token LPs. I could see a money market token being a nice alternative to non yield bearing SOL. It’s not like memecoins are worried about volatility!

[Jaam]

Thanks again for the thoughtful and thorough response. It is exactly the kind of dialogue I was hoping for because it surfaces the right challenges early. I apologize about taking a while to reply!

I agree with you on several fronts: the peg is the hardest part, supply is the bottleneck, and launching any new stablecoin into an already crowded market only makes sense if it is differentiated, sustainable, and aligned with the DAO’s broader objectives. That is precisely where I think JUST finds its lane, not as a competitor to majors like USDC or USDS, but as a purpose-built, DAO-aligned yield vehicle that gives the Jupiter ecosystem its own stable layer.

You are right about the Genius Act creating yield ceilings for U.S. treasury-backed stablecoins, and that is actually one of the main opportunities here. Because JUST is collateralized by Solana-native yield-bearing assets such as JupSOL, JLP, zBTC, and ETH derivatives, it can offer competitive returns without being bound by those same restrictions. The yield it generates flows directly to the DAO rather than an external issuer. That keeps the benefit inside the Jupiverse and turns what is normally an invisible spread captured by centralized providers into on-chain revenue that the community governs. BUIDL is a great example of a tokenized money market instrument, but it serves a different purpose entirely: regulated, off-chain yield distribution. JUST is meant to serve the opposite end of the spectrum, decentralized, composable, and symbiotic with Jupiter’s products.

In terms of design simplicity, I fully agree that Maker’s original DAI mechanism became unwieldy, which is why we have been looking more closely at Sky’s USDS model as the modern baseline. The idea would be to maintain that same clarity with single-asset vaults, straightforward LTVs, predictable minting and liquidation, while retaining the flexibility and governance depth that a DAO-controlled system should have. The initial collateral set would prioritize zBTC, wrapped ETH, JupSOL, and USDC or USD1 through the Peg-Stability Module. JUP itself would not be accepted as collateral at launch due to volatility, and if it ever were, it would only be in staked or locked form at very conservative ratios. This approach keeps the entry point for users simple, deposit one asset and mint JUST against it, but allows the DAO to tune LTVs, fees, and caps dynamically.

Where I think the model diverges most meaningfully from prior iterations is in the peg mechanics. Maintaining a dollar peg is unquestionably expensive if it depends purely on reserves or constant DAO intervention. The way around that is to make peg defense self-funding and partially automated. The Peg-Stability Module would handle 1:1 USDC and USD1 swaps with zero or near-zero fees on inflows and modest fees on redemptions, generating revenue in normal conditions and providing a first line of stability when JUST trades above or below par. A small portion of those fees, together with a slice of the protocol’s yield, would accumulate in a dedicated Peg Stability Reserve that automatically deploys liquidity when deviations exceed predefined thresholds. This turns peg defense from a recurring expense into a standing reserve that grows over time. On top of that, small on-chain incentives could reward arbitrageurs who help restore the peg, while deep liquidity pools such as JUST and USDC or JUST and SOL ensure that price discovery happens in liquid markets rather than thin, volatile ones. The DAO can further dampen volatility by integrating JUST directly into Jupiter Lend and the Perps platform, so a meaningful portion of minted supply sits locked as collateral or margin instead of circulating freely. In other words, peg resilience is achieved not through endless subsidies but through an ecosystem that naturally keeps the token in productive use.

The supply question is equally valid, and it is where Bitcoin and Ether collateral become particularly valuable. These assets historically have limited on-chain yield and are ideal for stablecoin issuance because holders are not sacrificing high returns to mint against them. Integrating with Zeus for zBTC provides a clear on-ramp for that supply, while maintaining Solana-based composability. Over time, partnerships with Huma Finance can extend demand on the other side of the equation by giving JUST exposure to credit and real-world yield channels, which diversifies utility beyond pure DeFi speculation. I also expect the DAO itself to seed initial liquidity and PSM reserves with USDC and USD1 to establish credibility from day one, a temporary bootstrap rather than an ongoing subsidy.

You are also right that even with all these mechanisms, majors like USDC and USDT will continue to dominate volumes in Lend and AMM routing. That is fine, the objective is not to replace them but to capture a meaningful share of internal liquidity that currently leaks value outward. Every dollar in JUST instead of USDC strengthens the DAO’s treasury and creates more reasons to hold and stake JUP, because the governance token becomes the lever that manages real revenue-bearing parameters: collateral weights, PSM fees, and reserve ratios. The more active those levers become, the more intrinsic value governance gains. That feedback loop between usage, yield, and governance utility is the real differentiator.

On the question of whether a non-pegged money-market token might be simpler, it certainly would be easier technically, and it might make sense as a later complement, but it would not serve the same purpose. A USD-pegged unit of account is still the foundation for quoting prices, settling trades, and managing margin across Jupiter’s products. Removing the peg would blur that clarity and create something that overlaps more with JLP or other yield tokens rather than filling the missing stable layer. The peg gives JUST its identity; the goal is to maintain it efficiently, not abandon it.

TLDR, JUST is not trying to compete head-to-head with Circle or BlackRock. It is an ecosystem-specific financial primitive that gives Jupiter a native, yield-bearing, governance-driven stable asset. Its peg is maintained through a dynamic, revenue-assisted PSM; its supply is sourced from assets that naturally fit stablecoin collateral profiles; and its demand is reinforced through direct integrations with Lend, Perps, liquidity routing, and partner platforms. It introduces a mechanism that not only provides stability but also channels value back to JUP stakers and the DAO treasury. If executed with the safeguards described, conservative LTVs, staged rollouts, on-chain peg reserves, and clear KPI gates, peg defense becomes sustainable and, under normal conditions, even net-revenue positive. That is why I still see JUST as a strong strategic move for the DAO: a tool that anchors stability, enhances governance, and keeps value circulating inside the Jupiverse instead of exporting it elsewhere.

[andrewsaul]

I think just focusing on stablecoins and wrapped ETH & BTC initially would be best.

I still think jupSOL, JUP and JLP are just too hard to handle re price volatility.

That’s IF you’re still wanting a USD peg.

Lots of stuff is denominated in or paired with SOL (which is non yield bearing).

A less volatile and yeild bearing SOL replacement might find PMF more easily than another stablecoin competing with the dozen or so either on Solana or slated to launch.

[Saltnation]

You won! Jupiter now has a stable coin

[andrewsaul]

Now Jupiter has a traditional stablecoin https://x.com/JupiterExchange/status/1975929208049463384 even more reason to pivot this to compete in the space BUIDL is playing in (money market fund).

A peg is very very hard to achieve with such incredibly volatile assets as JUP, JLP, or even jupSOL, so why try the near impossible when there is no on chain based competitor to BUIDL?

[Bluebird]

I believe the JupUSD will play a huge roles in the ecosystem.

[NightOwl]

Jupiter stablecoin is finally here, hope its integrated to some good yield stables infrastructure for good yields.

[Richard.eth]

Now that we have JupUSD as the stable coin, it will improve the ecosystem and also be suitable for staking with good yield.