3Jane is a crypto-native derivatives protocol built on restaking and cash-and-carry. At its core, 3Jane revolutionizes the way Ethereum is utilized by enabling the collateralization of cryptoeconomic security of any Proof-of-Stake (PoS) based system in derivatives contracts. This approach maintains the security of these systems whilst weaving them seamlessly into a vibrant derivatives market. Through composability, 3Jane unlocks the potential to generate substantial yield from options contracts all while contributing to the overarching security and robustness of the crypto economy.
We are witnessing a cambrian explosion in crypto-native yield-bearing assets enabled by EigenLayer’s restaking primitive. At time of writing, 14% of all staked ETH has been restaked equating to $14B TVL from native/liquid restaking.
In 2023, there was effectively 1 PoS yield source between ETH and BTC — you can stake your ETH on the Beacon Chain. Today, staked ETH and BTC can be re-pledged across an infinite number of cryptoeconomic systems and by doing so one can earn more yield in exchange for providing security. Specifically, this scales with the number of Actively Validated Services (AVS’s) live on EigenLayer (ETH) and the number of PoS chains live on Babylon Chain (BTC). As a result, you can have an infinite number of yield-bearing ETH and BTC variants with varying yield / risk profiles.
ETH security can now not only be used to secure ETH mainnet, it can now be re-pledged to secure AVS’s such as sidechains, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, trusted execution environments, etc. Operators secure AVS applications by running their software and in return receive AVS rewards. Operators are subject to slashing conditions of each AVS that it is securing.
Let’s imagine a scenario where there are 2 Operators {O1, O2} and 3 AVS’s {A1, A2, A3} live on EigenLayer. The power set of AVS’s represents all the possible combinations of AVS software that a Node Operator may run simultaneously, ranging from 1 AVS (isolated security) to all 3 AVS’s (pooled security). As a result, there are 7 (2³ — 1) possible combinations per Operator, and 14 in total between O1 and O2. Note that an Operator re-pledges the same ETH delegated to it across every AVS that it is running simultaneously. So, in this example with just 2 Node Operators and 3 AVS’s we have effectively gone from 1 asset (staked ETH) to 14 yield-bearing exotic variants of ETH, all with their own risk profile and importantly yield profile from each AVS.
Now, scale this to the current number of Node Operators (P2P, Chorus One, EtherFi, 01 Node, Ankr, etc.) and current number of AVS’s (EigenDA, Ethos, Lagrange, Espresso, Fhenix, etc.) and we get thousands of possible {Node Operator, AVS_1, …., AVS_n} combinations. Granted, in reality the only combinations are whatever each subset of AVS’s each Node Operator decides to run.
Similar to EigenLayer with ETH assets, BTC can now be used to secure other PoS Chains through Babylon Chain. This enables staking idle BTC towards securing alternate PoS chains and earning yield. Babylon allows you to lock directly on the Bitcoin network and leverages extract one-time signature (EOTS) to enforce slashing. As a result, BTC holders can also stake and earn yield and get exposure to different risk profiles/ APR’s depending on what it is securing.
Whereas EigenLayer allows users to access yield through proof-of-stake rewards, Ethena has built an on-chain vehicle for capturing cash-and-carry (long ETH spot, short ETH perpetuals) yield giving users upwards of 20% APY. sUSDe is yet another novel crypto-native yield-bearing asset.
3Jane is a crypto-native derivatives protocol leveraging restaking and cash-and-carry to unlock a novel layer of derivatives yield. 3Jane enables the collateralization of all exotic yield-bearing ETH and BTC variants across EigenLayer, Babylon Chain, and Ethena, in options contracts, encompassing a market size of approximately $17.5 billion (and growing) at time of writing.
Options contracts are a type of derivative that grants options buyers access to leverage in crypto without getting liquidated, unlike perpetuals. However, just like perps traders must pay a funding rate to be able to trade on leverage, options buyers must pay something equivalent to options sellers called a premium to get access to leverage. As a result, selling options is commonly used as a way to earn yield by collecting premiums in exchange for taking on a short volatility position. Options are a multi-trillion dollar market in traditional finance. Selling options is not a risk-free strategy. Read more here.
Users will be able to execute the cash-and-carry as well secure other PoS-based chains, data availability layers, shared sequencer marketplaces, ZK / FHE co-processors, TEE committees, etc and collateralize those positions in a robust derivatives market. As a result, users can earn an additional yield of up to 40% APY on their natively restaked ETH, eETH, ezETH, rswETH, and sUSDe by selling options contracts and collecting premiums.
ETH Buy&Hold: 0% yield
Stake on Lido: +x% staking yield
Restake on EigenLayer: +y% restaking yield
Collateralize on 3Jane: +z% options yield
Mainnet coming soon.
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3Jane will not be offered to persons or entities who are U.S. Persons, Restricted Persons, or Sanctioned Persons. Access and use by such persons is expressly prohibited.